Iranian Businesses Adopt Buy-Now-Pay-Later Amid Economic Collapse and War Pressures
In response to soaring living costs and economic turmoil exacerbated by ongoing conflict with Israel and the United States, Iranian companies have increasingly turned to buy-now-pay-later sales models and innovative marketing strategies. Tehran's streets are now filled with billboards from firms like SnappPay offering deferred payments on a wide range of goods and services, from clothing and mobile phones to gold jewelry and vacations. Even food delivery services such as SnappFood have introduced half-portion meals to accommodate shrinking consumer budgets.
The economic crisis stems from a combination of factors including the war, a U.S. naval blockade on Iranian ports, and the battle for control over the strategic Strait of Hormuz. These have intensified inflation, which has remained above 80 percent for three consecutive months, while the Iranian rial has plummeted to historic lows. Experts note that selling on credit in such high inflation conditions means merchants ultimately receive less real value, yet many businesses accept losses to maintain sales amid sharply declining demand.
The U.S. aims to increase economic pressure on Iran to force concessions, with President Donald Trump highlighting Iran's dire financial state. Physical damage from U.S. and Israeli airstrikes on steel and petrochemical plants, estimated at $270 billion, has compounded the crisis. The recent collapse of a temporary agreement to reopen the Strait of Hormuz has led to renewed U.S. naval blockades, further disrupting Iran's oil and gas exports.
Iran's government has promoted a "resistance economy" to withstand sanctions and isolation, betting that high global energy prices caused by the blockade will eventually compel the U.S. to relent. However, President Masoud Pezeshkian has warned that the public's economic hardship, not further attacks, is the greatest threat. The severe economic distress triggered mass protests late last year, which were violently suppressed. Although no new unrest has emerged since the war began, shifts in consumer behavior suggest Iranians are bracing for prolonged hardship.
Many citizens are selling gold holdings to cover basic expenses, reducing consumption of essential goods. The government has introduced food voucher programs providing about $5 monthly to 80 million people, but rampant inflation has eroded their value, prompting plans to increase aid by cutting support to wealthier groups. Meanwhile, middle-class urban markets have seen daily customer numbers drop from 1,200 to around 400. Affordable street food trucks are gaining popularity as traditional dishes like lamb kebabs become unaffordable, replaced by cheaper options such as grilled liver, and even popular falafel shops report losing half their clientele due to rising ingredient costs.
