Financial technology is the engine of economic growth

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Fintech solutions in the UAE have seen strong growth, with the launch of new payment tools and platforms by service providers and the proliferation of digital payments in the country, in addition to the fact that many emerging financial technology companies around the world have take the UAE as their headquarters, as experts confirm for Al Bayan “Dubai has today become a global destination for financial technology companies and that the” fintech “market has many growth opportunities and reaps more profitable and significant positive results.

Experts told Al-Bayan that the financial technology sector in the UAE has become a supportive driver for the activities of many other economic sectors, particularly e-commerce and smart logistics services. To reach $ 17 billion in 2025.

According to the latest data from the Ministry of Economy of the country, the value of the financial technology sector in the country is 2.5 billion dollars and leads the market of the Middle East and North Africa, while “Murder Intelligence” showed that the financial technology market in the UAE The UAE is poised to grow at a compound annual growth rate of 12% by 2020. 2027.

Based on the latest analysis in this area, the Corona pandemic has played a major role in accelerating innovation in the digital payment space.

The use of banknotes and coins has been reduced in all retail stores, restaurants and other service sectors, so that consumers have replaced credit cards or electronic payment methods for cash transactions to make payments. Companies have also worked on more digital payment options for customers and clients, such as providing digital connections to make payments and scanning QR codes.

electronic commerce

As a natural result of increased investment in online shopping, the popularity of e-commerce platforms is growing, as e-commerce platforms are also looking for improved ways to provide better customer service, such as scale delivery of goods, deliveries on the same day, and easy payment solutions to gain customer loyalty, with improved service. Interest in such platforms is growing, and thus the demand for digital payment solutions and services is growing.

According to the Big Commerce study, e-commerce is an industry that is growing at a roughly quarterly pace and represents an important path through which the adoption of digital payments continues to grow.

Regarding the role of digital payments in promoting e-commerce and the size of the electronic payment market, Dr. life, especially with the digital revolution we are witnessing now, which includes systems Banking and financial services, on the contrary, electronic payments are one of the services that are growing and advancing significantly.

Specifically in the Middle East, closures and restrictions on movement have encouraged brands and consumers to switch to cashless payment alternatives.

. E-commerce cannot continue without electronic payment systems that allow it to offer a variety of payment options to its customers and that fully meet customer expectations by providing a fast, secure and convenient payment process. Another reason that makes electronic payments more popular is the security element, as electronic payment systems provide encrypted services that protect the information of private clients during financial transactions.

She noted that the UAE is also witnessing a huge increase in the adoption of non-interchangeable coded (NFT) arguments driven by “blockchain” technology. According to a recent survey with more than 1,400 people in the country who own at least 23% of the population of the United Arab Emirates (NFT). As a result, ownership of non-exchangeable arguments is gaining momentum and highlighting the UAE’s innovation efforts.

fast trade

Soham Chokshi, co-founder and CEO of Chipsy, said digital payments have enabled the accelerated express trade sector, which is based on meeting growing demand and improving delivery time to serve customers better, more transparently and more fast.

According to research by Redsair, fast trade has already accounted for 20% of the digital economy in the MENA region and will contribute $ 20 billion to the total value of goods by 2024.

He added that the growing popularity of the model and the customer’s tendency towards appropriate purchasing methods will push e-commerce brands to focus on delivery speed, quality of service and transparency, and thus both e-commerce brands and retailers. retailers will have to rethink how they implement shipments.

Companies will face an urgent need to ensure high levels of customer visibility, make delivery management processes efficient and intelligent, and improve real-time customer communication.

They will need to focus on bringing goods closer to customers, balancing traditional inventory management processes and dark stores, increasing real-time inventory visibility, and improving third-party logistics management to comply with agreements. strict service level.

has evolved

Selesh Malhotra, General Manager of Geidea at GCC, said that the payment sector in the UAE and the region in general is experiencing rapid development, against the background of merchants and companies of all sizes seeking to respond to digital trends of their customers. .

He added, “We see this as an opportunity to provide appropriate and multi-channel solutions in the market to meet the needs of employers, whether they are dealing with clients or other institutions. We can help businesses reach customers more easily, support their transition to an e-commerce model, and allow them to adopt new devices and technologies to conduct transactions.

He stressed that the UAE represents a major hub for the digital economy in the region and offers great potential for companies looking to expand their operations.

The country has a strong infrastructure, a growing banking and payment sector, a fast-growing e-commerce market and large e-marketplace offerings, as well as its prestigious position as the headquarters of many major regional and international companies, which makes it a global destination for financial technology companies.

new players

Malhotra stressed that there are many competitors in this growing sector, adding that we are now seeing new players such as telecom companies, other financial technology providers, digital banks, technology companies and even some companies operating in the field of e-commerce by offered offers. to offer payment solutions.

We have the distinction of being a one-stop shop, offering a one-stop solution to support companies from their inception to their various stages of growth and development. We also offer a wide range of value-added services and have a dedicated team that assists companies in the process of technically integrating payment solution technologies.

He said mobile devices and new technologies like virtual reality and augmented reality, which give customers a more realistic experience when making online purchases, which also supports digital payments.

He added, “We expect there to be an ongoing focus on providing a smooth and convenient payment experience for customers, as they are always looking for ways and means to avoid the hassles of traditional shopping methods and this can include some updates like e.g. app payments, virtual customer service assistants and more shipping options. On the same day and so on.

digital assets

Digital assets, such as cryptocurrencies, are expected to contribute to the further expansion of this sector, as individuals and companies seek to market more of these assets in the future. Although acceptance of these assets is still limited, many countries around the world, including Dubai, are enacting laws to ensure that transactions using these assets are conducted securely and transparently.

Buy now, pay later is another trend that is dramatically changing the way transactions are executed as customers demand more flexible payment options. Demand for contactless cards and wallets is also expected to increase, as a recent survey conducted by McKinsey showed that 53% of respondents expect these technologies to dominate the market in the Middle East.

Amira Fadel, Tribal General Manager for the Middle East and North Africa, said virtual cards are one of the best payment solutions technology has recently offered to companies and individuals, as it enables them to make purchases and payments. from anywhere on the internet. through applications or through electronic wallets. , used in cell phones and smartphones from all over the world.

She added, “Virtual cards are used through a unique platform and system that offers a unique number for each purchase or payment. There are also many features that are not available on physical cards, such as no limit on transfer value. and it’s completely free. “

And she continued: Virtual cards can be activated or stopped immediately for any reason. There is no doubt that the security and protection offered by virtual cards during online payments and transfers adds great value to its users, especially after the escalation of electronic piracy.

Users can also set the daily or monthly spending limit and customize it to their needs through the digital platform provided by the virtual cards, in order to control their spending.

recurring payments

Virtual cards, or “VCCs”, are distinguished by the ability to activate them for several operations or just for one purchase, and this feature allows companies and users to set a monthly balance for cards used more than once during a fixed period of time, and can also be renewed monthly as needed.

for example; Assigning a Virtual Card Recurring Payments as social media campaigns that companies perform on a regular basis. One-time virtual payment cards have the ability to set a spending limit, which increases the level of security and ease of use.

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