Tag: uae

Cashfree Payments invests $15 million in UAE-based Telr

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Payments and API banking solutions company Cashfree Payments has made an equity investment of $15 million in Telr, a Payment Service Provider (PSP) in UAE and Saudi Arabia.

With this investment, Cashfree has become the single largest stakeholder in Telr. This strategic investment will enable Cashfree to launch its offerings in the MENA region on the back of Telr’s presence and payment infrastructure. The two companies also plan to build a cross-border payments platform to help Indian merchants accept payments from customers in the MENA region and vice-versa.

Growing market

Akash Sinha, CEO and Co-Founder, Cashfree Payments told BusinessLine, “The entire West Asian market is growing rapidly when it comes to digitisation. The MENA region is witnessing a continuous transition towards cashless transactions, with traditional brick-and-mortar businesses moving towards expanding online offerings. Today, less than 2 per cent of retail purchases in these countries happen online. So, there is a huge market opportunity.”

He added that another reason for this investment is that today a lot of Indian businesses are going global, and West Asia is one of the popular expansion locations among these companies. “The intention here is that once a company starts working with Cashfree, they will have a seamless transition whenever they go to other geographies across the world. And, companies will not have to go look for new banking partners in these new countries,” Sinha noted.

Cashfree’s pay-outs offering is integrated into the payments flows of internet businesses like Cred, Dream11, Acko, Xiaomi and Nykaa among others. The six-year-old company claims to be profitable for the past four financial years.

Founded in 2014, Telr is a UAE-based payment gateway solutions provider. It enables handling payments in over 120 currencies and 30 languages in a secured fashion.

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Network International, NPCI International sign MoU

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NPCI International Payments has signed a Memorandum of Understanding with Network International to discuss their collaboration on acceptance of the Unified Payments Interface (UPI) in the United Arab Emirates.

“With travel restrictions between India and the UAE recently relaxed, the proposed collaboration will benefit Indian travellers visiting the UAE by allowing them to make payments through UPI-based mobile applications leveraging Network’s trusted payment infrastructure and network strength as the UAE’s largest merchant acquirer,” they said in a statement on Thursday.

Rollout slated for 2022

The proposed rollout of UPI mobile payment solutions on Network International’s merchant network in the UAE is expected to start in the first quarter of 2022 across the company’s key retail merchant partner outlets, including those in sectors such as jewellery, supermarkets, and duty free retailers, the statement added.

Also see: PM Modi exhorts banks to support startups, invest in ideas

Network International is a leading enabler of digital commerce across the Middle East and Africa while NPCI International Payments Ltd (NIPL) is the international arm of the National Payments Corporation of India.

“We are confident that our proven product capabilities, combined with the vast merchant network of Network International, will enable UPI QR-based payment acceptance and scale-up in the UAE. We look forward to working with Network International to empower Indian travellers and the large Indian community in the UAE,” said Ritesh Shukla, CEO, NIPL.

RuPay acceptance

Earlier this year, Network International also announced its acceptance of India’s payment scheme – RuPay – to enhance the range of payment schemes acceptance and business for UAE merchants.

Nandan Mer, Group Chief Executive Officer, Network International, said, “The UAE is among the most favoured destinations for Indian visitors and the availability of a trusted and familiar mobile payment option such as UPI will enable visitors to pay for their purchases in the UAE safely and with ease.”

Also see: India received $87 billion in remittances in 2021; US is the top source

India has been working on popularising the use of UPI in other countries as well.

In September this year, the Reserve Bank of India and the Monetary Authority of Singapore had announced a project to link their respective fast payment systems — UPI and PayNow.

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Indians paid Rs 9,700 crore in hidden forex fees, BFSI News, ET BFSI

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Indians paid nearly Rs 9,700 crore in the form of fees hidden in inflated exchange rates while making remittances in 2020. This is more than a third (36%) of the total fees of Rs 26,300 crore that Indians paid for sending money across their country’s borders.

The fees reflect a lack of transparency and high charges applied by banks on remittances. Banks have been reducing the fees on foreign remittances and their income under this head fell from Rs 15,017 crore in 2016 to Rs 12,142 crore in 2019. However, they have protected themselves by recovering Rs 4,422 crore through exchange mark-up in 2020, which was up from Rs 2,505 crore in 2016.

These figures were from independent research carried out by Capital Economics in August 2021, which aimed to estimate the scale of foreign exchange transaction fees in India. The study was released by Wise, the technology company that was founded with the objective of reducing cross-border remittance costs.

Overseas workers sending money into India are also losing money. Over the past five years, money lost to exchange rate margins on inward remittances has grown from Rs 4,200 crore to Rs 7,900 crore. Meanwhile, fees paid to transaction costs have grown from Rs 10,200 crore in 2016 to Rs 14,000 crore in 2020.

“A significant portion of these fees paid on remittances to India come from people in Gulf countries where most are employed in blue-collared jobs to support their families back home in India,” a statement issued by Wise said. Of the share of total fees paid on inward remittances to India in 2020, Saudi Arabia ranked first at 24%, followed by the US (18%), the UK (15%), Qatar (8%), Canada (6%), Oman (5%), UAE (5%), Kuwait (5%), and Australia (4%).

“While technology and internet have eased some of the issues related to the convenience and speed of foreign funds transfers, the age-old practice of hiding fees in the exchange rate results in people spending too much on hidden foreign currency fees — money which should rightfully stay in their pockets,” said Wise India country manager Rashmi Satpute. Indian consumers spending abroad paid Rs 1,441 crore as transactions fees, of which Rs 1,303 crore was hidden charges in the form of exchange mark-up.



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UAE central bank issues new anti-money laundering guidance for banks, BFSI News, ET BFSI

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The United Arab Emirates central bank has issued new guidelines to financial institutions on anti-money laundering practices, it said on Monday, the latest of a number of measures launched by the Gulf state to combat illicit financial flows.

Banks will be required to develop internal procedures and put in place indicators to identify suspicious transactions and report them to the central bank’s Financial Intelligence Unit, the bank said in a statement.

They will also need to regularly screen their databases and transactions against names on lists issued by the United Nations Security Council or by the UAE government before conducting deals or entering into a business relationship with individual and corporate clients.

They have one month from Tuesday to demonstrate compliance with the central bank’s requirements, the central bank said.

“The guidance aims to promote the understanding and effective implementation by licensed financial institutions of their statutory anti-money laundering and combatting the financing of terrorism obligations”, it said.

In February the UAE government created an Executive Office for Anti-Money Laundering and Counter Terrorism Financing and last month Dubai set up a money laundering court.

The Financial Action Task Force, an intergovernmental anti-money laundering monitor, said last year that “fundamental and major improvements” were needed to avoid it placing the UAE on its “grey list” of countries under increased monitoring.

The country has emerged as one of the fastest-growing corporate tax havens, according to a study earlier this year by the Tax Justice Network, documenting countries that attract companies seeking to shrink their tax bills.



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BRICS bank NDB admits UAE, Uruguay, Bangladesh as new members, BFSI News, ET BFSI

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By K J M Varma Beijing, Sep 2 (PTI): The New Development Bank (NDB) set up by the BRICS group of nations has admitted the United Arab Emirates, Uruguay and Bangladesh as the first batch of new members as part of its expansion drive, the bank announced on Thursday.

Launched in 2015 by Brazil, Russia, India, China and South Africa (BRICS), a group of major emerging economies, the Shanghai-headquartered bank mobilises resources for infrastructure and sustainable development projects in their respective countries and other developing nations, complementing the existing efforts of multilateral and regional financial institutions for global growth and development.

NDB has initiated its membership expansion and started formal negotiations with prospective members in late 2020, the bank said in a press release.

After a round of successful negotiations, NDB approved the admission of the UAE, Uruguay and Bangladesh as its first new member countries, it said.

“We are delighted to welcome the UAE, Uruguay and Bangladesh to the NDB family. New members will have in NDB a platform to foster their cooperation in infrastructure and sustainable development,” NDB President Marcos Troyjo said.

“We will continue to expand the bank’s membership in a gradual and balanced manner,” he said.

NDB has an authorised capital of USD 100 billion, which is open for subscription by members of the United Nations, the press release said.

Since the beginning of its operations, NDB approved about 80 projects in all of its members, totalling a portfolio of USD 30 billion.

Projects in areas such as transport, water and sanitation, clean energy, digital infrastructure, social infrastructure and urban development are within the scope of the bank, the release said.

Commenting on the admission of the UAE, Obaid Humaid Al Tayer, Minister of State for Financial Affairs of the UAE, said it “represents a new step to enhance the role of the UAE economy on the global stage, especially in light of the great capabilities and expertise that the country possesses in supporting infrastructure projects and sustainable development”.

Uruguay’s economy and finance minister Azucena Arbeleche said the country sees in the NDB a great opportunity to harness cooperation with its member nations, aiming to achieve stronger international integration in trade and cross-border investment flows.

Bangladesh’s finance minister A H M Mustafa Kamal said, “Membership of Bangladesh to NDB has paved way for a new partnership at a momentous time of 50th anniversary of our independence.”

“We look forward to working closely with NDB to build together a prosperous and equitable world for our next generation as dreamt by our Father of the Nation Bangabandhu Sheikh Mujibur Rahman,” he said. PTI KJV SCY SCY



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Mashreq Bank, NPCI International partner to offer UPI in the UAE

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NPCI International Payments Ltd (NIPL) has partnered with Mashreq to offer acceptance of its mobile-based real-time payment system, Unified Payments Interface (UPI), in the UAE.

“This partnership will enable over two million Indians who travel to UAE for business or leisure purposes every year to pay for their purchases seamlessly using UPI-based mobile applications across shops and merchant stores in the UAE,” said a joint statement on Friday.

The tie-up is expected to boost the digital payment ecosystem in the UAE and will prove to be a major stepping stone for the wider reach of UPI in the international markets, it further said.

“We are excited about our partnership with Mashreq Bank, which will enable consumers from India transact seamlessly using NPCI’s world-renowned UPI platform and deliver seamless user experience,” said Ritesh Shukla, Chief Executive Officer, NIPL.

In July, NIPL and Royal Monetary Authority RMA of Bhutan had partnered to enable and implement BHIM UPI QR-based payments in Bhutan.

“Given the position of UAE as an international commerce and tourism hub, retail merchants in the Emirates always enable the latest payment methods that are expected by our international clients,” said Kartik Taneja, EVP, Head of Payments Mashreq Bank.

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NPCI global arm ties up with Mashreq Bank for UPI payments in UAE, BFSI News, ET BFSI

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NPCI‘s global arm NPCI International Payments Ltd (NIPL) has partnered with UAE-based Mashreq Bank to provide its mobile-based real-time payment system UPI in the gulf nation. This strategic partnership will be a significant game-changer in the digital payment ecosystem in the UAE, a release said on Friday.

With this tie-up, more than 2 million (20 lakh) Indians travelling to the UAE are expected to benefit from Unified Payments Interface (UPI) enabled mobile applications to pay for their purchases in a shop or merchant establishment across the country.

Developed by National Payments Corporation of India, UPI facilitates inter-bank transactions.

Mashreq said the tie-up is very timely with growing appetite for mobile-based payments and the bank has witnessed 20 per cent month-on-month growth in pick-up rate.

The implementation of UPI also opens a whole new world of opportunities for enterprises in the UAE and allows them to compete with much larger retailers, it said.

The partnership with Mashreq Bank will enable consumers from India to transact seamlessly using NPCI’s world-renowned UPI platform and deliver a seamless user experience, said Ritesh Shukla, Chief Executive Officer, NIPL.

UPI is one of the most successful real-time payments technology globally that offers secure and simple person to person (P2P) and person to merchant (P2M) transactions.

In 2020, UPI allowed transactions worth USD 457 billion, which is equivalent to approximately 15 per cent of India’s GDP.



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UAE says to launch digital currency within five years, BFSI News, ET BFSI

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The United Arab Emirates will launch its first digital currency by 2026, the central bank of the oil-rich Gulf state, which serves as the region’s financial hub, said Monday.

Several central banks around the world have recently announced similar plans while criticising decentralised cryptocurrencies like bitcoin.

The Emirates central bank said its plans include “issuing a digital currency and driving digital transformation in the UAE‘s financial services sector, by utilising the latest artificial intelligence and big data solutions.”

The announcement is part of its “2023-2026 strategy” which aims to “position it among the world’s top 10 central banks”, it said according to state media.

In 2019, Saudi Arabia and the UAE announced a test phase of a common cryptocurrency for cross-border transactions.

The UAE has big tech ambitions, investing in artificial intelligence, launching a space program, and hosting the regional headquarters of large multinational digital firms.

Faced with increasing popularity of the cryptocurrency bitcoin, as well as for online payments during the pandemic, central banks are exploring new units of their own.

China launched the race in March with the start of a test phase of its digital yuan.

The central banks of the United States, the European Union and England are also evaluating the possibility of launching their own digital currencies, which are designed to bring stability to a highly speculative sector.

Created in 2008 as an alternative to traditional currencies, bitcoin is the world’s most popular virtual unit.

But its price has slumped recently due to fresh moves from China to crack down on cryptocurrencies.



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HSBC commits $5 bln in corporate lending to help UAE growth, BFSI News, ET BFSI

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DUBAI: HSBC said on Sunday it is committing $5 billion in lending to “strong” companies in the United Arab Emirates to help drive the Gulf country’s growth plans.

The UAE‘s economy suffered in 2020, as vital sectors like tourism and hospitality were crippled by the COVID-19 pandemic.

Companies, government-linked institutions, as well as sovereigns Abu Dhabi, Dubai and Sharjah, have borrowed billions to bolster their finances and fund spending.

“Our research clearly indicates that UAE companies are ready to invest internationally and sustainably.” Abdulfattah Sharaf, HSBC’s CEO for the UAE and head of international, said.

“Our US$5 billion commitment, between now and 2023, will support plans that strong companies have to enter new trade markets, re-engineer their supply chains, to innovate – and to play an active part in helping shape the nation’s future growth story.” Sharaf added in a statement.

The commitment by the British bank marks 75 years since HSBC opened its business in the UAE, which is a major oil producer as well as a trade and commerce hub.

HSBC said its Navigator 2020 report showed 81% of companies in the UAE were expected to increase investment spending by end-2021, compared to 66% globally.



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UAE’s first independent digital banking platform launched, BFSI News, ET BFSI

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The first independent digital banking platform in the United Arab Emirates launched on Sunday, a neobank hoping to become a leader in the Middle East, Africa and South Asia.

Dubai-based YAP does not have a banking licence itself but has partnered with RAK Bank which provides international bank account numbers for YAP users and secures their funds under its own banking licence.

YAP, like other neobanks which do not have physical branches, does not offer traditional banking services like loans and mortgages, but offers spending and budgeting analytics, peer-to-peer payments and remittances services and bill payments.

YAP is in the process of partnering with banks in other countries, head of product Katral-Nada Hassan said, including a bank in Saudi, in Pakistan and in Ghana.

Global leaders in digital banking, such as Revolut, one of the world’s fastest-growing apps, do not have a UAE presence.

Some UAE banks have in recent years launched their own digital banking offerings targeted at digitally-savvy and younger users, such as LIV by Emirates NBD and Mashreq Neo by Mashreq Bank.

Abu Dhabi state-owned holding company ADQ last year said it plans to set up an as-yet unnamed neobank using a banking licence of the country’s biggest lender, First Abu Dhabi Bank (FAB).

“The fintech revolution has become very popular in other parts of the world and we saw a gap and unique need for this service in the Middle East,” said YAP CEO and founder Marwan Hachem

Hassan said there are challenges for fintechs looking to expand to the UAE.

“There are a lot of fintechs right now looking at partnering with banks, but that requires a lot of discussion, relationship building … It is not an easy thing to do,” she said, adding YAP’s founders had an existing relationship with RAK Bank.

YAP is at seed funding stage, funded by founders, a private equity firm and private investors, Hassan said, adding that more than 20,000 customers have pre-registered and accounts will gradually go live in coming weeks.



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