"Visa" : The regulatory environment in the UAE will increase financial technology investments during 2023
DUBAI, April 29, 2017 (WAM) – Visa, the international company, confirmed that the Dubai FinTech Summit is a pivotal platform for enhancing innovation and cooperation in the UAE, enabling more financial technology companies to build a comprehensive, advanced and accessible financial system.
Hassan Kazemi, Head of Digital Partnerships for the Central and Eastern Europe, Middle East and Africa region, said in a statement to the Emirates News Agency, WAM, that despite the decline in global investment in the field of financial technology, the UAE has witnessed a jump in investments in this sector, citing a report by ‘ Innovate Finance, who indicated that global investments in the sector decreased by 42%, while the UAE emerged as a leading center for financial technology in 2023, as it witnessed a noticeable increase of 92% in total investment in this sector, and the increase in investment in the field of technology was Finance in the UAE, which reached $1.3 billion through 54 deals, supported by financial technology-friendly regulations and widespread adoption of digital banking services.”
Regarding Visa’s announcement of a three-year partnership as a co-sponsor of the Dubai FinTech Summit, he stated that this confirms Visa’s commitment to continuing to advance financial technology in the region, and our commitment to enabling digital companies and next-generation entrepreneurs to grow and achieve prosperity.
He said, “At Visa, we have developed comprehensive programs to support financial technology companies at every stage of growth and development, and we provide guidance, training and financing, and drive entrepreneurship and innovation around the world.”
Kazemi spoke about many initiatives and programs led by Visa to support startups in the field of financial technology, including the “Visa Everywhere” initiative, which is considered a global platform for startups to showcase their innovations and secure potential financing, and the “Fintech Fast Track” program, which is concerned with accelerating the preparation process and providing the necessary resources for growth. Rapid market entry, and the “Visa Ready to Launch (VRTL)” program, which simplifies the process of issuing payment products.
He pointed out that developers looking to integrate Visa technologies can obtain direct support at the company’s developer centers.
He said that many collaborations with financial technology companies in the region, including “AlaanPay”, which offers a complete expense management platform powered by artificial intelligence for small and medium-sized companies, and “Tarabut Gateway”, which is a regional open banking platform, help enhance customer experiences and simplify transactions. Cross borders and promoting financial innovation by leveraging open banking capabilities, representing Visa’s first venture into the local open banking sector.
Regarding the growth rate of digital payments using cards in the UAE market, Kazmi explained that card payments were the most popular online payment method in the UAE during the past year, as they accounted for nearly half of all transactions (48%), and digital wallets came in second place, as they represented… Just under a quarter of transactions – 23% – are online.
He stressed that mobile payment is an increasingly preferred option for in-store payment, as the use of mobile payment services at point-of-sale terminals in the UAE has witnessed a significant increase, as the rate of mobile phone use in point-of-sale payment operations has increased from 28% in 2017. 2020 to 41% in 2023, which indicates a growing trend towards mobile payment solutions among consumers in the UAE and reflects the shift towards more convenient and secure payment methods.
Regarding the volume of digital payments using cards compared to cash payments, Kazmi said, “Digital payments occupy a leading position in the UAE, where cards constitute the majority of the wallet share. However, approximately 20% of transactions are still made in cash.”
He stressed the existence of a strong financial system in the Emirates that is more than capable of dealing with local and international payments, pointing to Visa’s role in facilitating regional, international and cross-border transactions smoothly, as it processes up to 76,000 transactions per second around the world, and within moments, as Visa can Process this payment data, route it between parties, and allow transactions with risk management across 200 countries and territories.
Regarding expectations for the electronic payments market in the Middle East and the Emirates, Kazmi said, “The electronic payments market in the region, including the UAE, is witnessing growth across various sectors such as card-based payments, e-commerce, and mobile payment, and digital wallets are a crucial element.” On this growth journey, it has emerged as the fastest growing online payment method in the Middle East and Africa region, as well as globally.”
He added, “Digital wallets accounted for 23% of e-commerce spending in 2023 in the Middle East and Africa region, with a 35% year-on-year increase in the value of transactions. Looking to the future, further growth in the electronic payments market is expected, driven by factors… such as technological innovation, the rise of e-commerce, and shifting consumer preferences towards cashless transactions.”
- For more: DC & People website and for social networking, you can follow us on Facebook
- Source of information and images “poosh“
