Which factors are driving the adoption of digital payments in the UAE?
When it comes to payments, today’s consumers care about choice, speed, security and convenience, and that’s exactly what digital transactions offer. Digital payments are also on the rise because they’re easy to adopt, and there are the added benefits of advanced transparency and traceability. Our New Payments Index shows that people in the UAE are increasingly embracing digital transactions. This trend is spearheaded by the country’s young, tech-savvy population.
One area where we are seeing significant growth is cross-border payments. The UAE is home to a large expat population, for many of whom cross-border payments are a vital way to stay connected to their communities. According to our Borderless Payments Report 2023, 48% of people in the country expect to send cross-border payments more frequently. Meanwhile, 36% are likely to receive more cross-border payments, driving the demand for robust international money transfer solutions.
At Mastercard, we are providing people with fast, seamless, secure and affordable ways to move money internationally. Mastercard Cross-Border Services, part of Mastercard Move, our comprehensive portfolio of money transfer solutions, facilitates the movement of funds across 180 countries in over 150 currencies, with access to more than 95% of the world’s banked population.
We have recently joined forces with NymCard, a leading Banking-as-a-Service (BaaS) provider, to offer fast money transfers to its customers from the UAE to 47 countries through one secure connection.
Can you tell us about Mastercard’s efforts in the commercial payments space in the UAE?
The commercial payments segment presents a wealth of opportunities for innovation. The volume of business-to-business (B2B) payments is increasing rapidly, with the Middle East and Africa market value projected to reach $122 billion by 2030. In this fast-evolving landscape, outdated payment methods are costing companies significant time and money.
At Mastercard, we are promptly responding to the urgent need for digitization in this space. We have launched several successful projects that enable companies of all sizes to make and receive efficient digital payments.
Earlier this year, we joined forces with 4thWave, an innovative finance and BaaS digital platform provider, to streamline business-to-business payment flows. We also partnered with fintech company PayMate to enable digital B2B payments across several markets in Eastern Europe, Middle East and Africa. In addition, we are collaborating with Fundbot, a UAE-based fintech firm specializing in supply chain financing, to launch a payment platform that seamlessly links buyers and suppliers.
Small businesses are among key economic drivers in the UAE. How is Mastercard helping SMEs in the country reach their full potential?
At Mastercard, we believe SMEs are the key to inclusive growth. We’re dedicated to empowering every business, meeting them where they’re at on their journey with solutions that are reliable, effective and consistently ensure security and satisfaction.
Through our trusted network of community leaders, banks, technology partners and merchants, we provide small businesses with access to cutting-edge technologies and inclusive initiatives that help protect and grow their companies. From data-driven solutions and AI-powered tools to loyalty schemes and philanthropic programs, we continue to modernize experiences so entrepreneurs can focus on what matters most: running their business.
In 2020, we pledged to connect 50 million micro, small and medium enterprises (MSMEs) worldwide to the digital economy by 2025. I’m proud to share that we have recently achieved our target one year ahead of the deadline.
With its enabling legislation and ease of doing business, the UAE provides an ideal environment for small businesses to set up, build and scale. The country is home to more than half a million SMEs that account for 63.5% of the national non-oil GDP. This number is forecast to hit one million by 2030.
At Mastercard, we are committed to driving the growth of the UAE’s thriving SME ecosystem. We do this by providing small businesses with the tools they need to pay and get paid quickly and securely, expand their reach and deliver a seamless experience for their customers.
To support our goals, we partnered with Abu Dhabi Global Market (ADGM) to digitalize SME payment flows. We also collaborated with Aramex and the UAE Ministry of Economy’s The Entrepreneurial Nation to launch the ScaleUp platform with the aim of supporting SME growth in the UAE. ScaleUp presents an exciting opportunity for startups and SMEs to pitch innovative ideas for a chance to win AED 250,000, meet with angel investors and gain several other benefits.
Our latest achievement in this space is the launch of a co-branded credit card with DP World and Emirates NBD that facilitates payments for shipments at the port for small businesses in the trade and logistics sector.
How is Mastercard contributing to advancing cybersecurity in the UAE?
The UAE has a highly progressive approach to cybersecurity, as evidenced by its fifth rank in the Global Cybersecurity Index 2020, issued by the International Telecommunication Union (ITU).
At Mastercard, we are proud to contribute to building on these consistent efforts by leveraging our technology expertise to collaborate with the UAE government. In 2023, we established the Center for Advanced AI and Cyber Technology in Dubai. We’re working with the UAE Artificial Intelligence Office to increase AI capabilities and readiness in the region so we can develop more pioneering solutions to battle financial crime and secure the digital ecosystem.
Earlier this year, we kicked off the inaugural AI Challenge in partnership between the Center, the UAE Artificial Intelligence Office and First Abu Dhabi Bank (FAB). The competition invites innovative startups to propose AI-driven solutions in the fields of cybersecurity, generative AI in banking and finance, customer lifecycle management, productivity enhancement, emerging fintech and ESG.
Our sizeable investment in cybersecurity development and innovation has brought outcomes like the Brighterion fraud prevention solution, which is powered by AI to provide advanced fraud screening. In the Middle East and Africa, we are collaborating with Network International to provide Brighterion to 60,000 merchants across the region.
What are the latest innovations in the sector which we will see soon in the UAE or across the region?
I believe AI-driven solutions have immense potential for widespread deployment. AI is truly at the heart of transforming commerce through personalization, enhanced user experiences and advanced fraud detection. In addition, its ability to identify trends and patterns makes it a handy cybersecurity tool.
At Mastercard, our customers also look to our analytics and advisory services for AI expertise, such as thought leadership and custom AI engagements. We embed AI features and capabilities into our Data & Services offerings, developed by more than 2,000 data scientists, analysts and engineers.
We are ramping up our investments in AI governance, technology and talent. This February, we announced the launch of Decision Intelligence Pro, a next-generation technology solution based on generative AI that has the potential to improve fraud detection by up to 300%, supercharging consumer protection.
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