RemitONE Webinar: Turn Transactions into New Revenue & Reduce Costs

Many cross-border payment providers are unaware of how much their compliance checks are costing them time and money.

With compliance costs rising, loyalty becoming harder to maintain, and margins under pressure, many providers are starting to rethink how they grow profitably without adding complexity.

In our latest webinar, we explored how money transfer operators, fintechs, and payment providers are using AI and value-added services to reduce operational costs, improve approvals, and unlock new revenue opportunities around the transaction.

What you’ll take away:

Cut compliance costs with centralised PEPs & sanction checks

Improve transaction approvals and speed with AI

Automate manual compliance processes and reduce workload

Prevent fraud and speed up onboarding ID verification with liveness checks

How value-added services like open banking, eSIMs, airtime, and payout aggregation create new revenue

If you missed the live session or want to revisit the strategies discussed, you can watch the full replay below.

As competition tightens across cross-border payments, growth is becoming less about doing more, and more about operating smarter.

The providers pulling ahead are reducing friction, improving customer experience, and creating more value around every transaction, while keeping costs under control.

If you’d like to explore any of the topics discussed in more detail or see how they could work for your business model, feel free to reach out to the team at marketing@remitone.com or book a free call with Oussama.

The Next Era of Cross-Border Payments in 2026

The cross-border payments industry is entering a structural shift. In 2026, growth won’t come from simply moving money faster or cheaper. It will come from building smarter, revenue-generating ecosystems around the transaction.

In this article, we’ll cover:

How interoperability reduces friction and unlocks cleaner, faster processing

Revenue-driving add-ons that increase customer lifetime value

Why digital liquidity tools free up capital and improve margin control

How AI-driven optimisation protects revenue while lowering operational strain

Let’s look at what’s really shaping the next phase.

1. Interoperability Becomes the Baseline

Cross-border payments still move through a web of banks, wallets, correspondent networks and clearing systems. When those systems aren’t well connected, payments slow down, data gets lost in translation, and manual intervention increases.

In 2026, interoperability is becoming an expectation rather than an advantage. Institutions increasingly require infrastructure that allows them to connect with multiple partners, corridors and services through a unified framework — reducing complexity while enabling faster expansion.

This is why hub-based connectivity models are gaining traction, enabling senders, receivers, payment gateways and verification layers to plug into a single ecosystem instead of operating in silos — an approach we’ve built into our own RemitONE Hub architecture to simplify global connectivity.

Another key enabler of this shift is ISO 20022, the global messaging standard being adopted across major payment networks.

Together, stronger connectivity and standardised messaging enable:

Scalable multi-corridor expansion without bespoke integrations

Cleaner data exchange across senders, payout partners and gateways

Reduced operational friction and exception handling

Faster reconciliation and improved straight-through processing

Interoperability in 2026 is about building intelligent, unified connectivity that supports growth without multiplying complexity.

2. Value-Added Services That Drive Revenue & Loyalty

Cross-border payments are no longer just about moving money, they’re about the value businesses can unlock beyond each transaction, as showcased in our recent webinar.

Add-ons reduce customer churn and increase customer retention. Instead of being a one-time transfer business can become part of their customers’ financial journey through:

Prepaid cards – Enable recipients to spend funds instantly on everyday purchases and subscriptions, increasing engagement beyond the initial payout.

Travel eSIMs – Keep customers connected when travelling, maintaining brand relevance between transfers while opening additional revenue streams.

Mobile Top-Ups – Offer convenient, low-friction add-ons that encourage repeat usage.

Loyalty & Rewards Programmes – Incentivise repeat transfers through points-based systems, reducing switching.

Together, these extensions encourage repeat usage, reduce customer switching, and enable money service businesses (MSBs) to generate greater value from their existing customer base without rebuilding core infrastructure.

As pricing pressures intensify, diversification becomes critical. Those who expand their value beyond simple transaction processing will outperform those who don’t.

We offer these add-ons, so if you’d like to simply know more or explore how it can be tailored to your operations, then feel free to book a free call.

3. Digital Liquidity & Tokenised Settlement Rails

Another defining cross-border trend in 2026 is the mainstream use of regulated digital assets for settlement. Institutions are exploring tokenised deposits and regulated stablecoins to improve liquidity management and reduce pre-funding costs.

Traditionally, cross-border payments providers and banks have had to pre-fund accounts in multiple countries to ensure payouts happen instantly. That means keeping large sums of money sitting idle abroad, tying up capital and increasing operational risk.

Now, regulated digital assets, such as tokenised bank deposits and regulated stablecoins, are beginning to change that model. They allow institutions to move value across borders faster and more efficiently, without needing to park large pools of funds in every country.

But beyond cost savings, this infrastructure shift enables:

Dynamic FX optimisation

Real-time treasury dashboards

Monetisable priority settlement options

Instead of simply managing where money sits, institutions can actively optimise how capital is deployed and reduce balances.

4. AI-powered Automation & Compliance

We’re seeing the rise of agentic AI that doesn’t just analyse data but actively makes decisions within rules.

Traditionally, operations teams have had to monitor transaction flows, review compliance alerts, and adjust FX rates. Agentic AI changes that dynamic; it learns from transaction patterns, responds to risk signals in real time, and makes decisions that improve speed, cost efficiency and compliance simultaneously.

It can help:

Identify the fastest and cheapest payment routes instantly

Predict potential delays and re-route transactions before they fail

Monitor liquidity across multiple accounts and currencies

Optimise foreign exchange rates in real time

Identify fraud patterns that humans or static systems would miss

This isn’t about replacing people. It’s about removing operational friction so teams can focus on growth to stay ahead of the competition.

At RemitONE, our AI-powered tools have been developed around the real operational pressures MSBs face, from reducing failed transactions and improving FX outcomes, to easing compliance workload. They’re designed to integrate smoothly into existing systems, helping teams streamline workflows without disruption.

If you’d like to explore it more, book a call or see it in action here: https://www.remitone.com/ai-cross-border-payments-1/

Next Steps

This is a pivotal moment in the industry. As margins tighten and competition increases, the businesses that innovate beyond basic transfers will move ahead, while others gradually fall behind.

If you’re exploring how to evolve your cross-border strategy, we’re always open to a conversation. Share where you’re seeing operational pressure or growth challenges, and we can explore what smarter infrastructure could look like for you.

You can book a call or reach out to us at marketing@remitone.com

Episode 5: Your 2026 Headstart – Trends, Predictions & Insights Shaping Cross-Border Payments

2026 is shaping up to be a year of rapid change, and standing still is no longer an option. The question is: how will your business not just keep up, but grow on top?

In Episode 5 of the RemitONE podcast, Natalie Perkins sits down with Aamer Abedi (CMO) and Oussama Kseibati (Head of Business Solutions) to break down the trends shaping the year—AI-driven automation, evolving fraud patterns, shifting customer behaviour, and early Web 3.0 use cases—and what they mean for your business.

Those who act early will be best placed to grow, protect margins, and stay ahead. If you want to discover the forces redefining cross-border payments and turn them into opportunities, this episode is your roadmap.

You’ll uncover:

• How agile MSBs are outpacing larger incumbents across key corridors
• The product areas creating meaningful new revenue channels
• A fast-growing opportunity expanding 85% year-on-year
• What the convergence of remittances and payments means for long-term strategy
• The early indicators pointing to next year’s competitive advantage

Watch the full episode below:

2026 won’t slow down. Adapt, diversify, and seize the tools that will put your business ahead of the competition. Book a free call with our team, and we’ll walk you through a solution tailored to your needs.

Faster, Smarter, Cheaper – How AI is Transforming Cross-Border Transactions

Speed and cost have always been the sticking points in cross-border payments. Customers expect instant, low-cost transfers. Yet Money Service Businesses (MSBs) and fintechs are often held back by long settlement chains, high fees, and operational inefficiencies.

AI is changing that.

By processing massive datasets in real time, AI is unlocking faster, smarter, and cheaper ways to move money across borders.

Why Cross-Border Payments Lag Behind

A single remittance can pass through several intermediaries. Each one takes time. Each one adds a fee.

The result:

Transfers can take days

Costs remain stubbornly high

Customers grow frustrated and switch providers

The World Bank estimates the global average remittance cost is 6.49%. For a competitive industry, that number is simply too high.

How AI Optimises Payments

AI isn’t just about automation. It’s about intelligence.

Applied correctly, AI can:

Identify the fastest and cheapest payment routes instantly

Predict potential delays and re-route transactions before they fail

Monitor liquidity across multiple accounts and currencies

Optimise foreign exchange rates in real time

This doesn’t just reduce costs. It improves reliability, which is just as critical for customer trust.

👉 See how RemitONE’s AI modules optimise routing and FX for MSBs.

Industry Momentum

We’re already seeing the results:

SWIFT reports that 90% of wholesale payments now reach beneficiaries within one hour.

Fintech startups are using AI tools to forecast liquidity and cut operational overheads.

The technology is moving quickly from pilots into production.

For MSBs, this means the tools are not just for global banks — they’re accessible now, at an affordable level.

Why This Matters for MSBs

Customers expect fast payments at competitive rates. Providers that can’t deliver both risk losing business to rivals who can.

AI makes it possible to:

Reduce transaction costs

Offer faster settlement times

Compete with larger players on efficiency

This is particularly powerful for smaller MSBs, who often lack the economies of scale that global banks enjoy.

👉 Explore how our AI bolt-ons give MSBs enterprise-grade payment intelligence.

Where to Start

The best entry points for AI in payments are:

Routing optimisation (reduce failures and delays)

FX rate monitoring (improve margins without manual effort)

Liquidity forecasting (stay ahead of cash flow risks)

Each of these can be deployed as a modular upgrade, without disrupting existing systems.

The Takeaway

AI is levelling the playing field in cross-border payments. What once required massive infrastructure is now available through targeted, affordable solutions.

For MSBs and fintechs, adopting AI in payment routing and FX is no longer optional — it’s a competitive necessity.

Want to cut costs and speed up settlement times?

Book a free strategy call to explore how AI bolt-ons can transform your payment flows.

Episode 3: How AI is Transforming Cross-Border Payments | The IPR Podcast

AI is transforming cross-border payments in real time. In Episode 3 of the IPR podcast, Dr. Senaka Fernando, a leading voice in digital transformation, reveals how AI agents can be the key to automating compliance, speeding up transactions, and even preventing fraud before it happens. From startups automating onboarding to banks upgrading systems without disruption.

Want to see how your business can stay ahead in the AI-powered payments game? Watch the full episode for practical strategies and real-world insights you can start using today.

At RemitONE, we’ve been developing new AI Agent tools designed to help you:

Automate KYC/AML processes
Expand payout infrastructure into new sending markets
Offer value-added services like airtime, top-ups, and utility bill payments

Want to see how this can boost revenue for your business? Book a free call with our team.

Meet RemitONE team in Riyadh, Saudi Arabia: Unlock AI-powered growth

We’re heading to the Money20/20 event in Saudi Arabia to connect with ambitious businesses looking to scale. Aamer Abedi, our CMO, Oussama Kseibati, Head of Business Solutions, along with our partner Anwar Al Murshed from DTCC, will be in Riyadh 15th – 19th, September to explore cross-border payment opportunities with our AI, open banking and blockchain solutions.

Whether you’re expanding into sending markets like the UK and Europe or navigating complex compliance demands, our AI-powered solution can help you grow and unlock new revenue.

We provide the building blocks to future-proof your operations, even if remittances aren’t your core offering, with tools such as:

Automated KYC/AML

Scalable payout infrastructure to new sending markets

Value-added services including airtime, top-ups and utility bill payments

To arrange a place and time, please email us at: marketing@remitone.com

About RemitONE

RemitONE is an award-winning, leading provider of money transfer software solutions for banks, telcos, and money transfer operators (MTOs) worldwide. With multi-channel access, including agent networks, online, and mobile, RemitONE empowers organisations to streamline and scale their remittance operations.

The Top 5 Cross-Border Payment Trends That Shaped 2024

What a year it’s been for the world of payments! From breakthroughs in tech to surprising shifts in consumer behaviour, 2024 has kept us on our toes. Whether it’s the ways we send money, secure transactions, or even think about digital currencies, this year has been nothing short of transformative. But what were the key trends that stood out and reshaped the landscape? Let’s dive in and explore the innovations that made waves—and will set the stage of what’s to come.

AI and Biometric Verification in Payments: The Future of Secure Payments

As fraudsters get more sophisticated, the payments industry is fighting back with AI and biometrics, creating a formidable defence for identity verification. According to PYMNTS Intelligence, 51% of global users now rely on biometrics to verify online payments—proof that this technology is becoming a trusted norm. But its influence stretches beyond payments; biometric systems are also making waves in airports, stadiums, and event venues.

Biometrics is even transforming the remittance sector. By simplifying onboarding and checkout, it ensures faster, more secure cross-border transactions while reducing friction—a win for users and compliance alike. In Vietnam, for example, embedding biometric verification led to a remarkable 72% drop in fraud-related accounts. As digital apps become the preferred method for money transfers, biometric verification seamlessly complements the transition to smooth, app-based experiences.

Advanced biometric systems are integrating features like liveness detection (to prevent spoofing). This is why we have been proactive and introduced earlier in the year our RemitONE Liveness Feature™, which uses liveness testing and facial biometrics to detect fraud, like deepfakes or silicone masks when scanning faces. It ensures biometric data is from a real, physically present person. Integrating it into your onboarding process reduces financial risks and safeguards your company’s reputation.

To activate this feature, reach out to us at sales@remitone.com.

Real-time payments: The Fast Lane Keeps Getting Faster

In 2024, the demand for instant, hassle-free transactions kept real-time payments (RTP) on a steep growth curve. Thanks to advances in open banking and cloud tech, payment systems have become faster, safer, and more user-friendly than ever.

Just last month in the U.S., RTP set a jaw-dropping record with 1.46 million transactions in a single day. Globally, India remains the frontrunner, clocking 130 billion RTP transactions in 2023. And the momentum shows no signs of slowing down—according to ACI Worldwide, RTP is projected to grow by $285.8 billion and bring over 167 million more people into the banking ecosystem by 2028.

The story doesn’t end there. Developing economies are doubling down on mobile-first approaches, boosted by smartphone adoption and supportive regulations, creating the perfect storm for RTP expansion. But with great speed comes greater risk—fraudsters are evolving too. In response, AI-powered security tools are stepping up, delivering real-time fraud detection and prevention to keep transactions safe.

Real-time payments are reshaping the financial landscape, and if 2024 is any indication, the future is all about immediacy, security, and inclusivity.

Collaborations & Partnerships: Driving innovation

In 2024, the cross-border payments space thrived on groundbreaking collaborations, each aiming to make global money transfers faster, easier, and more inclusive. Here’s a snapshot of some standout partnerships:

Visa and Revolut: These two giants teamed up to launch Instant Card Transfers, offering real-time payments in over 78 countries. With just a card number, users can now send money globally at reduced fees and lightning speed. This move is a game-changer, especially for small businesses and freelancers managing international payments.

Tarabut Acquires Vyne: MENA-based Tarabut acquired UK’s Vyne to supercharge its account-to-account (A2A) payments. This step aligns perfectly with regulatory shifts in Saudi Arabia and the UAE, simplifying cross-border payments for both businesses and consumers in the region.

Mastercard and Equity Bank: Strengthening ties with Equity Bank, Mastercard enabled seamless cross-border transfers to over 30 countries across Kenya and Sub-Saharan Africa. By removing landing fees and ensuring recipients receive full-value remittances, this partnership addresses affordability and accessibility for underserved markets.

Nium and Kinexys: Nium and Kinexys (powered by J.P. Morgan), have taken their partnership to the next level, making international payments to Malaysia, Thailand, and Hong Kong smoother than ever. By validating bank account information in real time, they’re tackling failed payment errors head-on.

No business thrives in isolation—collaboration is often the key to unlocking new opportunities and driving innovation. By working together, businesses can combine strengths. But let’s face it, finding the right partners can be a challenge, which is why we provide the RemitONE Hub™, where we can connect you with our trusted network of MTOs, banks, telcos, and payment gateways to elevate your business.

Whether you’re looking to enhance your operations or break into new markets, collaboration is the way forward. So, if you’re interested in discovering our network then just send us a quick email at sales@remitone.com.

CBDCs: Are we getting there?

Central Bank Digital Currencies (CBDCs) saw significant momentum globally, with 134 countries, representing 98% of global GDP, exploring their potential. Among the 44 active pilot projects, China’s digital yuan (e-CNY) stood out, processing transactions worth $986 billion this year, up from $253 billion in 2023. Projects such as mBridge—a cross-border CBDC initiative involving Saudi Arabia, UAE, Thailand, and China (including Hong Kong)—highlight growing efforts to enhance international financial systems.

Frontrunners like Nigeria, Jamaica, and the Bahamas focused on expanding their retail CBDCs to improve financial inclusion, although adoption remains slow. Meanwhile, in the West, the U.S. joined global pilots like Project Agorá, and the EU made strides with its digital euro initiative, both addressing key regulatory and interoperability challenges.

As we head into 2025, the spotlight will be on whether CBDCs can overcome hurdles like privacy concerns, cybersecurity risks, and geopolitical rivalries to deliver their promise of reshaping global finance.

Countries embracing Cryptocurrency and Blockchain

The adoption of Blockchain and cryptocurrency soared this year, with many countries taking bold steps toward integrating these technologies into their economies. A report from TripleA revealed that over 560 million people worldwide now own cryptocurrency, marking a 34% increase from the previous year. ChainAnalysis findings found India, Indonesia, and Vietnam led the charge, driven by the growing need for financial inclusion, particularly in areas with high inflation or currency instability.

One of the standout developments is the growing trend of integrating blockchain with AI and privacy-enhancing tools like zero-knowledge proofs, which aim to make blockchain interactions more secure and confidential. This combination is increasing confidence in decentralised systems, making them more attractive to both businesses and governments. For instance, the UAE continues to lead with projects like the Dubai Blockchain Strategy, aiming to make the city fully blockchain-powered. They’ve already achieved significant milestones by migrating all applicable government transactions to the blockchain platform, enhancing transparency and reducing bureaucracy.

Other countries in Central and Southern Asia, like Indonesia and the Philippines, are also embracing crypto, with growing merchant services and DeFi applications. This grassroots adoption, particularly in lower-middle-income (LMI) nations, shows how crypto is helping bridge financial gaps for millions.

The trend is expected to continue upward, with further integration of blockchain into national economies and the rise of regulatory clarity. Many countries are now adjusting their frameworks to better accommodate crypto use while mitigating risks. The European Union’s MiCA regulation, for example, is paving the way for more institutional involvement. Expect to see more countries adopting blockchain for government-backed digital currencies and public services, while stablecoins remain crucial in regions like Sub-Saharan Africa for remittances and payments.

This year has proven to be a milestone year in the evolution of the payments landscape. As we prepare for the challenges and opportunities of the future, one thing is clear innovation will continue to be the driving force behind progress in payments and finance. With tools like our biometric liveness feature and a global network to tap into, we’re here to help you innovate, expand, and stay secure.

Ready to elevate your game? Get in touch with us at sales@remitone.com to learn how our solutions can help you stay ahead in this fast-evolving landscape.

Revolutionising Money Transfers: 4 Key Trends Shaping the Future

This article is brought to you in partnership with Worldpay, written by Kunal Choudhary, Money Transfers Strategy Lead at Worldpay.

The landscape of international money transfers is going through a shift, driven by evolving consumer expectations and technological advancements. For money service businesses (MSBs), staying ahead of these changes could be key to success.

Let’s explore these trends and how Worldpay could help businesses navigate this transformation.

The need for speed

In today’s hyper-connected world, consumers need convenience, speed and security when it comes to moving their money. A recent study revealed that over three-quarters of consumers (77%) now expect instant payments¹. Money transfers are often time sensitive, so long waits for funds to clear may mean switching to an alternative provider. This shift in expectations is compelling MSBs to revamp their infrastructure to facilitate fast transfers while adhering to complex international regulations.

As a leading payment processor², we could help you to provide the quick, secure, and cost-effective money transfers your consumers are looking for. By incorporating our decades of expertise and authentication solutions, you can expand your reach and offer faster transfers around the world.

Digital wallets on the rise

Industry projections suggest that by 2027, digital wallets are projected to account for almost half ($25 trillion) of global transaction value³. This surge is fuelled not only by the ease of paying with just one tap, but also by the built-in two-factor authentication and tokenisation, this payment method offers.

One in five financial services customers would switch platforms if their preferred payment method was unavailable⁴. That’s why it’s important to incorporate secure and flexible options that meet those needs and help with enhancing loyalty. Worldpay’s solutions could facilitate direct integration between MSB platforms and popular wallet apps, simplifying orchestration and compliance while enabling a dynamic user experience.

The Personalisation Paradigm

Today’s consumers are increasingly looking for tailored experiences that reflect their individual needs and preferences³. One-size-fits-all approaches are no longer sufficient.

To keep pace with consumers, MSBs might look into innovative technology such as artificial intelligence (AI) as a route to personalisation. AI could empower merchants to understand and predict customer needs better, offer customised solutions, and of course, automate. Worldpay is harnessing AI and machine learning together with extensive transaction and biometric data to help you make intelligent decisions in real-time.

The Fraud Prevention Imperative

With the volume of digital transactions rising⁵, the risk of fraud is also becoming a major concern⁶. Ensuring a safe environment for online money transfers is becoming a top priority for maintaining customer trust and compliance with regulations.

Worldpay’s fraud solutions use rich data from 52bn annual transactions to help detect and predict fraudulent activity to help protect consumers.

Embracing the Future

The money transfer industry stands at a crossroads, with emerging technologies and shifting consumer preferences reshaping the landscape. MSBs that can successfully navigate these trends – offering rapid transfers, embracing digital wallets, personalising experiences, and fortifying fraud protection – might be best positioned to thrive in this dynamic market.

Collaborating with an experienced payment provider could be a game-changer for MSBs looking to stay competitive. By tapping into advanced solutions and deep industry expertise, businesses can accelerate their transformation and deliver the smooth, secure, and personalised experiences that modern consumers expect.

To chat to one of Worldpay’s experts today, please visit https://www.worldpay.com

Sources:

Meet Worldpay at IPR Global 2024

Meet Platinum sponsors, Worldpay at IPR Global this September. Don’t miss out on this unmatched opportunity to connect with their team.

Get your tickets today, spaces are limited: https://global2024.ipr-events.com/

Saudi Arabia and the GCC: How to Tap into one of the World’s Biggest Payments Markets | IPR Global 2023

Join us for an enlightening panel discussion where our expert panellists will delve into the dynamic landscape of payment and remittance services within Saudi Arabia and the Gulf Cooperation Council (GCC) region.

Discover the latest market trends, regulatory insights, and technological innovations driving this vibrant sector. Gain valuable knowledge about consumer behaviour, cross-border remittances, financial inclusion initiatives, cybersecurity, sustainability efforts, and prospects.

Moderator:

Ibrahim Muhammad, Payments Consultant, Finxplor

Panellists:

Yasser Fathi Alkhouli, Chairman & CEO, Labbaik Global Ltd.
Nadeem Qureshi, CTO, USI Money
Saif Khan, President – EMEA, BILRS

What makes GCC such a significant region for payments and remittances?

The GCC has emerged as a powerhouse in the payments and remittances sector, with a staggering market value of $140 billion, a stark contrast from its valuation of $25 million in the early 2000s. This exponential growth underscores the region’s economic significance. What makes the GCC even more noteworthy is that two of the top three sending markets globally are from within its borders, namely the UAE and Saudi Arabia, as highlighted by Saif. The interconnection between migration and this surge in the payments market cannot be overstated, with approximately 30% of the world’s migrants residing in Gulf countries. This not only explains the current momentum but also points toward the untapped potential for further expansion. Saif’s insights into the UAE market, boasting around 10 million individuals with 9 million being expatriates, of which almost 60% are from Southeast Asian countries, provide a granular understanding of the diverse demographic contributing to the region’s payment dynamics.

Yasser adds another layer to the discussion by emphasising Saudi Arabia as the fastest-growing within the region. As Saudi Arabia strives to achieve its ambitious goals by 2030, the payments and remittances industry is set to play a pivotal role in shaping the economic landscape of the region.

What are the primary challenges and opportunities for businesses looking to enter or expand into key markets like Saudi Arabia and the UAE?

Entering or expanding into key markets like Saudi Arabia and the UAE presents a nuanced landscape of challenges and opportunities. Nadeem sheds light on the unique dynamics within the GCC, highlighting the differences in how countries operate internally despite shared interests like security and religion. He draws attention to the varying compositions of the migrant population, with the UAE boasting a highly skilled workforce (9 out of 10) compared to Saudi Arabia (4 out of 10), where the majority are labour workers.

Saudi Arabia’s policy to promote local employment aligns with its 2030 vision, however, cultural challenges are prevalent in the market, where large corporations grapple with stakeholders who may not easily comprehend intricate industry aspects. This calls for a need for simplification and effective communication strategies to navigate potential misunderstandings. Furthermore, the creation of new cities with unique laws and regulations essentially will form microcosms of countries within the country. This complex setup unveils opportunities within the sector, but it also demands a meticulous investigation into the business proposition.

Yasser points out the evolving nature of the market, where he specifically highlights Saudi Arabia’s ambitious city plans, such as NEOM, presenting a frontier of opportunities and ushering in a new era. With the planned expansion of the capital, Riyadh is to be five times its current size which signals the potential for businesses to establish a presence in these emerging zones. The country’s demographic consists of 75% under 40, whom are well-educated, which highlights the availability of skilled human capital, further enhancing the appeal for businesses seeking to enter or expand in these key markets. In essence, the challenges and opportunities are intricately woven into the unique fabric of each country, requiring a strategic and culturally sensitive approach for successful market entry and expansion.

How has the Saudi youth adapted to the digital landscape?

The youth’s seamless integration into the digital landscape, evident through active participation in conferences and tech exhibitions, has become second nature. This growing digital presence not only parallels the annual surge in new businesses but also cultivates a tech-savvy and readily available workforce. Yasser points out the restrictions the government has implemented on studying abroad, encouraging individuals to pursue their education domestically, to foster academic growth within the country. Notably, Saudi boasts one of the top 30 universities in the UAE, the King Abdullah University of Science and Technology. The ongoing trend of remote work, accelerated by the pandemic, has simultaneously opened new opportunities for Saudi youth to contribute to various industries from the comfort of their homes.

Despite the prevalence of migrants being employed for labour-intensive roles, Yasser points out the presence of global non-Saudi nationals in sectors like tourism. Recognising this diversity is crucial when analysing workforce dynamics in the region.

The mention of the Umrah pilgrimage, a significant event attended by millions of Muslims, brings attention to the unique religious aspects that businesses must consider. Yasser advises companies operating in the region should align their services with the principles of religion, particularly when catering to events like Umrah, where spending decisions are influenced by religious laws.

How can the payments industry contribute to improving financial inclusion in Saudi Arabia and the rest of the GCC, and what initiatives are currently in place?

Nadeem provides valuable insights into how the payments industry can play a pivotal role in enhancing financial inclusion, particularly focusing on Saudi Arabia. Financial inclusion, as he defines it, involves both participation in various transactional aspects and exerting control over the entire transaction process, from initiation to delivery. However, he notes that gaining approval from the Saudi Arabian Monetary Authority (SAMA) is a prerequisite, making entry difficult. He suggests an alternative route, collaboration with companies involved in different stages of the transactional chain.

The remittances sector poses a unique challenge due to the historical dominance of the top four players, often working closely with local partners. Nadeem proposes separating remittances from acquirers, PayFac, and tech providers, then strategically selecting components that foster financial inclusion. Overcoming hurdles for small and medium-sized enterprises (SMEs) is another focus, given the regulatory mandate for banks to engage with other banks. Nadeem suggests navigating this constraint by leveraging aggregators under the remittance umbrella to facilitate relationships and streamline the process.

Regulatory pressures have led to a reduction in the number of Money Transfer Operators (MTOs). The regulations dictate that to maintain their status, MTOs must refrain from establishing new global network relationships, indicating a shift in how remittances are managed, with a greater emphasis on the banking perspective. This contrasts with the situation in the UAE, where exchange houses wield more influence in the remittance landscape.

What are some incentives for Saudi startups in the Fintech landscape?

Yasser echoes Nadeem’s point that there has been a steady increase in new players and heightened competition in recent years. One crucial aspect is the intersection of regulations and payment products, presenting a significant opportunity for Fintech startups. Drawing parallels with the tourism industry’s success in introducing instalment payments, buy now pay later options, vouchers, and loyalty programs, Yasser suggests that similar tactics could be applied to the payments and remittances market. This strategic approach has the potential to boost transactions by 20-30% annually. While the technology is capable of offering these services, there is less utilisation of it in the current market.

To stand out in the competitive landscape, payment companies should incorporate creativity in diversifying their products and services. By tailoring offerings to resonate with the target audience and provide tangible benefits, companies can foster customer loyalty.

How are Fintech companies and startups contributing to the transformation of the payments landscape in the region? Can you share examples of successful innovations?

Saif provides valuable insights into how Fintech companies and startups are driving a transformative shift in the payments landscape of the region, citing significant growth indicators and successful innovations. Notably, he highlights a remarkable increase in fundraising for startups, with a staggering growth rate of 170% from $35 million in June 2023 to $95 million in July 2023. This substantial investment influx signifies the progress and potential of startups in the region, fueled by ambitious leadership visions such as Saudi Arabia’s 2030 plans and the UAE’s 2050 goals, aiming to double population, economy, and resources.

He further draws attention to the evolution of Fintech solutions, noting the regulatory clarity that now exists compared to the past. Previously, launching a prepaid program was challenging, but today, banking-as-a-service models operate under well-defined regulations, with clear licensing and specifications of their roles and responsibilities.

In terms of corporate expenses, Saif highlights a notable shift from traditional payroll methods to more streamlined processes involving gift cards and multi-currency cards. This transformation has made it easier for SMEs to manage their expenses through the implementation of advanced software and tools, eliminating tedious and time-consuming procedures.

The impact of the Wage Protection System (WPS), mandated by the Saudi Arabian Monetary Authority (SAMA) has played a crucial role in bringing many individuals into the banking sector, including the unbanked and underserved populations, thereby expanding financial services to a broader audience. Moreover, the entry of players from the US and UK markets indicates the global interest and recognition of the region’s fintech potential.

How do you see the adaption of AI and Blockchain technologies within the payments sector in the region?

The status of cryptocurrency, specifically Bitcoin, in Saudi Arabia exists in a legal grey area, it’s worth noting that no penalties or fines are imposed for its use currently. Nadeem suggests that the authorities are cautiously monitoring the situation, acknowledging the potential risks but also recognising the need to stay on top of global trends to meet its 2030 visions. While Saudi Arabia has not outright banned cryptocurrencies, it maintains a vigilant stance.

In contrast, blockchain technology is actively utilised in the GCC region, particularly in crypto-friendly locations like Dubai. Settlements, exchanges, and transactions involving Saudi Arabia often take place through facilities provided in neighbouring countries, such as the UAE. This cross-border utilisation showcases the potential of blockchain technology in facilitating seamless transactions within the region.

AI plays a major role in Saudi Arabia’s 2030 vision. The ambitious plan involves extensive implementation of AI technologies, particularly in new city projects that are heavily technology-driven. Biometrics, contactless payments, and various opportunities in the AI landscape are integral components of this forward-looking initiative.

Yasser points out the imminent surpassing of Saudi Arabia’s 2030 Vision within the next two years and the unveiling of the 2040 Vision in 2025. This rapid evolution indicates the country’s openness to new opportunities and its commitment to continually embrace and expand its technological landscape.

What do you foresee as the future trends and opportunities in the payments space in Saudi Arabia and GCC?

Yasser anticipates the transfer of dynamics from the tourism industry to the payments sector, foreseeing a replication of successful models in the years to come. He emphasises the versatility of Saudi Arabia, noting that consumer behaviour can vary between the northern and southern regions. This regional variability necessitates a thoughtful consideration of tailored products and services to cater to specific preferences in different areas.

Saif predicts a substantial growth in payments, with expectations of doubling or even tripling in the coming years. He highlights a significant shift in payment culture, noting the emergence of strong players in the remittance sector that offer a diverse range of services, such as bill payments and travel cards. While there has been a 35% shift to digital platforms, a substantial 60% of transactions still occur in brick-and-mortar stores. Interestingly, comparing this to the US market, people in the UAE are adapting digitally faster.

The role of population growth, driven by expats, startups, and investors also acts as a key factor in shaping the future of the payments landscape. The increasing economic activity and diversity in the population contribute to the expectation of ongoing growth and evolution in the payments sector.

What next?

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Payments Rewired: Blockchain’s Impact on Remittances | IPR Global 2023

In this instalment, we traverse the corridors of Open Banking’s impact on cross-border remittances, harnessing AI’s potential for efficiency, and navigating the realm of blockchain-based solutions. Buckle up for an insightful session through the dynamic intersection of finance, technology, and innovation.

Moderator

Lindsay Lehr, Managing Director, PCMI

Panellists:

Walter D’Cruz, Director, Moneo Solutions
Sukhi Srivatsan, Head of Account Management, AZA Finance
David Lambert, CEO, Paycross

How does open banking facilitate cross-border remittances and interoperability between financial institutions?

Let’s first understand what open banking is before diving in. David summarises it as an instant domestic bank transfer system. This essentially allows third-party entities access to users’ financial data via APIs, enabling them to make payments on behalf of the user. Walter expanded on this, emphasising how real-time payments and data exchange are subsets of open banking. He highlighted the challenge it poses to direct debit and recurring payments, especially in merchant-initiated transactions.

David also shed light on Open Banking’s potential as an alternative payment method by making instant payments by just scanning QR codes; however, he notes its limited spread in the market. Drawing parallels with established systems like PayPal or Apple Pay, he stressed the need for better branding and consumer familiarity to propel Open Banking into a mainstream payment method. Moreover, the discussion linked Open Banking to Central Bank Digital Currencies (CBDCs), foreseeing their role in accelerating international payment rails for faster digital currency. However, concerns were raised about CBDCs being entirely under central banking control, prompting potential government involvement due to public apprehension.

How can AI be leveraged to enhance the accuracy of remittance transactions and improve the user experience?

Sukhi highlighted critical pain points faced at AZA Finance when it came to liquidity projection and forecasting for their clients. Addressing the need to ensure sufficient currency availability at the right time and place without inflating costs for clients. To tackle this, they created an internal model that utilised historical client data to predict future growth patterns, aiding in better preparation for customer demands and enabling proactive measures such as potentially offering increased liquidity when moving to new markets.

However, David expressed scepticism about the reliability of predictive AI for precise forecasting. He highlighted the limitations of AI, emphasising its dependence on the data it’s fed and its inability to independently form entirely accurate projections due to various external factors influencing trends. He believed AI must be heavily controlled, such as by setting rule parameters and cautious utilisation, to prevent misleading or inaccurate predictions.

Acknowledging this, Sukhi agreed that human involvement was crucial. While AI forecasts might not be pinpoint accurate, they allow for better-informed decisions.

Walter countered common fears around AI. He emphasised AI’s role in expediting data analysis by enabling quicker translation of data into actionable insights, thereby saving time and effort. Walter advocated for a practical approach, distancing from rigid rule parameters, which is especially beneficial for small to medium-sized enterprises (SMEs) that often struggle with sourcing and analysing multiple data sources to make informed decisions. This flexibility allows smaller businesses to compete and innovate alongside industry giants.

What are some real-world examples of successful blockchain-based remittance solutions?

Walter sees blockchain as a global equaliser capable of transferring value across boundaries in real time. However, he underscores the importance of recognising blockchain independently from central bank digital currencies (CBDCs) and cryptocurrencies, as they still involve inherent complexities like exchange rates and associated costs. However, the challenge of decentralisation may be difficult for society to embrace.

David, on the other hand, points out a fundamental issue: the persisting limitations in the speed of money movement due to technological and regulatory barriers. He notes that blockchain doesn’t inherently address this challenge, especially with governments increasingly advocating for CBDCs, which introduces another layer of complexity and opposition.

Furthering the conversation, Walter delves into the intricacies of technological efficiency. He cites an example of banks implementing cheque scanners to streamline verification processes, yet this technological enhancement didn’t significantly impact on the time taken for the money to be deposited into bank accounts. This prompts doubts about the effectiveness of new technologies in speeding up financial transactions. There is the possibility for a potential paradigm shift if major retailers, such as Amazon, embed cryptocurrencies. There is also an opportunity for the adoption of blockchain within the remittance industry; however, there needs to be collaboration among stakeholders to lay down a functional framework and process. This collective effort is crucial to overcome the hurdles and ensure a more meaningful integration of this technology into the financial landscape.

What next?

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