Save Now Buy Later for dummies

Save Now Buy Later (SNBL) is a growing financial trend in the fintech world. It encourages consumers to save for a purchase over time rather than borrowing money upfront. Unlike Buy Now Pay Later (BNPL), which allows people to buy items immediately and pay in installments, SNBL promotes financial responsibility by focusing on saving before spending. This innovative model helps people avoid debt while still enjoying the benefits of buying high-value goods or services.

 

How Does SNBL Work?

With SNBL, users regularly set aside small amounts of money into a savings plan. Once they have saved enough, they can use the accumulated amount to make their desired purchase. Many platforms offering SNBL partner with retailers or brands, enabling users to save for specific items, such as electronics, travel packages, or furniture.

For example, someone looking to buy a laptop might join an SNBL platform, like Accrue or Monkee, and save a portion of their income each month. When they’ve saved the full amount, they can buy the laptop without using credit or accumulating debt.

 

Why SNBL is Gaining Traction

SNBL is becoming popular due to its ability to promote financial responsibility while addressing issues of debt and overspending. Here’s why it’s gaining momentum:

1. Debt-Free Purchases: Unlike BNPL, SNBL encourages saving upfront, eliminating the risk of missed payments or high-interest debt.
2. Flexible and Customizable: Users can set their own savings goals, timelines, and amounts, adapting the model to their needs.
3. Appealing to Younger Generations: Many Millennials and Gen Z consumers are attracted to SNBL’s responsible approach to spending. They favor financial solutions that emphasize savings over credit, particularly in a post-pandemic world that has heightened awareness of financial stability.

 

SNBL vs BNPL: What’s the Difference?

While BNPL allows consumers to make immediate purchases and pay later, SNBL flips this model by focusing on saving first. Here are the key differences:

• BNPL can lead to debt if payments are missed, while SNBL requires no loans or interest.
• SNBL encourages long-term savings habits, while BNPL can encourage impulsive spending.
• BNPL is well-suited for quick purchases, but SNBL is ideal for big-ticket items or planned future buys.

 

The Environmental Angle of SNBL

Interestingly, SNBL aligns with sustainability goals. Since this model encourages consumers to make thoughtful, deliberate purchases, it can reduce the impulse buying often associated with BNPL. This reduces waste and overconsumption, making SNBL a greener financial option. Consumers are not only avoiding debt but also buying in a more environmentally-conscious way.

 

Key Challenges Facing SNBL

Despite its growing popularity, SNBL faces certain challenges:

• Delayed Gratification: Consumers must wait to make their purchases, which may not appeal to those seeking instant gratification.
• Adoption and Education: Many consumers are more familiar with credit-based solutions like BNPL. SNBL providers must educate users about the benefits of this model and how it can improve financial well-being.
• Risk of Abandonment: If the savings process takes too long, some users may lose interest and abandon their savings goals.

 

The Growing Global Trend

In 2024, the SNBL market is seeing significant growth, particularly in regions like India and Europe. Startups like Accrue, Hubble, and Monkee are leading this charge. They have created user-friendly platforms that integrate behavioral economics and savings tools, driving strong engagement. Experts predict SNBL could account for 10-15% of high-value purchases globally by 2025.

 

Top SNBL Providers Worldwide

Here are some of the key players in the SNBL space:

• North America
  • 🇺🇸 Accrue (USA): One of the leading SNBL platforms in North America, Accrue allows users to save for future purchases with cash incentives provided by merchants.
• Europe
  • 🇩🇪 Savrr (Germany): Offers a model that integrates savings plans for specific purchases.
  • 🇦🇹 Monkee (Austria): Encourages consumers to save for big purchases with rewards
  • 🇬🇧 HyperJar (UK): Allows users to save into different “jars” for specific goals or products.
  • 🇬🇧 Cashmere (UK): A women-focused savings platform, Cashmere is designed for luxury and lifestyle purchases.
  • 🇫🇮 Holvi (Finland): Holvi supports small businesses and freelancers with tailored financial services, including SNBL options.
  • 🇨🇿 Spendee (Czech Republic): An app that helps users save and budget for specific purchases.
• Asia
  • 🇮🇳 Hubble (India): A platform where consumers save in an escrow account and receive discounts on purchases.
  • 🇮🇳 Multipl (India): Users can save money with brands, invest in mutual funds, and receive rewards.
  • 🇲🇾 Sugar (Malaysia): Focuses on encouraging savings for travel and lifestyle products.
  • 🇮🇩 Tortoise (Indonesia): A fast-growing SNBL platform in Southeast Asia, it promotes savings for aspirational purchases.
  • 🇸🇬 Aspire (Singapore): Though Aspire primarily focuses on small business financing, it’s integrating SNBL models to allow users to save for larger purchases​.
  • 🇯🇵 Moneytree (Japan): A savings and financial management app that now offers SNBL-like services for its users to plan and save for specific purchases.
• MENA (Middle East and North Africa)
  • 🇪🇬 Sympl (Egypt): A fintech that facilitates saving for future purchases without the burden of debt.
  • 🇦🇪 Sav (UAE): A fintech app helping UAE residents save for future purchases amid rising inflation​.
  • 🇦🇪 Compound (UAE): A new player launching SNBL services in Q4 2024​.
  • 🇸🇦 Tamara (Saudi Arabia): Known for its BNPL services, Tamara is launching SNBL options for users to save for future purchases in partnership with regional brands.
• Africa
  • 🇹🇿 Tunzaa (Tanzania): Enables users to save for essential items through a structured plan.
  • 🇰🇪 Copia Global (Kenya): Targets underserved markets with a model that allows consumers to save for necessary items.
  • 🇳🇬 CDcare (Nigeria): A hybrid model allowing consumers to receive items after 50% of the price has been saved.
  • 🇿🇦 LayUp (South Africa): This platform combines traditional layaway methods with SNBL, allowing users to save up for purchases and offering rewards for achieving savings milestones.
  • 🇰🇪 FlexPay (Kenya): FlexPay integrates with local merchants to provide SNBL services, helping customers save up for essential and high-value goods​.
• Oceania
  • 🇳🇿 LayBuy (New Zealand): Traditionally a BNPL provider, but now offering SNBL options as well.
• LATAM
  • 🇲🇽 Nelo (Mexico): Originally focused on BNPL, Nelo has expanded to offer SNBL services in Mexico, targeting consumers who prefer saving for big-ticket items​.
  • 🇧🇷 Addi (Brazil): This fintech is primarily known for its BNPL services, but it’s exploring SNBL as part of a broader strategy to offer consumers more flexible financial options​.

These companies are at the forefront of changing how consumers approach saving and spending, offering a safer alternative to traditional credit-based models.

 

Why SNBL Matters

The rise of SNBL reflects a shift in how consumers view financial responsibility. By promoting a debt-free, savings-oriented model, SNBL encourages healthier spending habits. This model is especially important for younger generations who prioritize financial security and sustainability. As the SNBL trend continues to grow, it could reshape the future of fintech and consumer finance.