UAE’s leading fintech companies disrupting the payments industry

Fintech is a generic term used to define financial technology companies. Fintech is transforming the way people do business, making processes more efficient and safer, just as technology achieves. 

Several blockchain and payment startups in the UAE fintech scene are breaking traditional models such as banking and payment services. 

 The UAE’s fintech industry is booming as it increasingly embraces new technologies, bringing in a wave of disruptive companies that can help transform financial services.

How has the UAE impacted the payments industry? 

The Middle East is a huge market for financial services. The UAE’s gross domestic product (GDP) reached $428 billion in 2016, making it the fourth-largest economy in the Arab world. For banks, more than 80% of this amount comes from remittances and remittances, and non-petroleum trade and investment income, including insurance products and securities. 

 Coincidentally, the UAE entered the top 20 remittances in 2016. It was worth $28 billion that year alone, and it’s a huge market for fintech. Example:

  • TransferWise 

 In 2015, a British foreign exchange company raised $30 million to expand its business in the Middle East. They are a leader in peer-to-peer remittances with an estimated value of $1 billion. Their services are available in more than 90 countries and they currently have over 1.5 million customers worldwide.  The UAE has more than 200,000 citizens worldwide, representing more than 50 different nationalities. Their business model is based on the ability to reduce foreign exchange costs and reduce exchange rate risk. Their services are designed to help small businesses and entrepreneurs. It’s a great example of how fintech companies are trying to outperform traditional banks and try to send money at a lower cost piece.

  •  Stripe 

 Stripe is an online payments company founded in 2010 by Irish brothers Patrick and John Collison, based in  San Francisco. Working with Rent Runway, Shopify, and OpenTable, it is one of the largest companies doing business in the region. 

 The company raised $245 million in Series D  to expand into the Middle East. In 2016, we expanded to Singapore, Malaysia, Hong Kong, and Australia, but now we are focusing on the UAE market.  Their services are aimed at businesses that accept online payments, such as e-commerce, SaaS, or online marketplaces like Amazon. They are expanding their business to provide end-to-end funding solutions for small businesses and e-commerce, the UAE is one of the largest markets.

Blockchain Banking: The Evolution of Banking

 The Middle East is undergoing a rapid transition from traditional banking to digital payments based on blockchain technology. 

 Banks themselves are generally not business innovators in this space and are not always the first to introduce innovative technologies. Instead, they are startups that provide solutions to established banks by finding new ways to disrupt the financial services industry and offering alternative methods of remittance. 

Tel Aviv-based Bancor is one of several startups looking to create a global liquidity network for digital currencies using blockchain. They are using smart tokens and local currencies to disrupt payment services and provide new financial opportunities worldwide.  Their “Smart Token” protocol allows them to create unique tokens of value in themselves in the Bancor ecosystem, providing users with an efficient way to create and manage liquidity.  Blockchain enables the formation of new businesses based on this technology, which is following the corporate marketplace in a way that traditional banks cannot compete. 

Mobile Banking Apps: Changing The Way

The pinnacle 10 UAE fintech organizations have a tendency to attention to growing virtual systems that make banking less difficult for purchasers at the same time as additionally growing extra fees and offerings for those organizations.

The UAE is one of the world`s largest cell banking apps markets, with more or less 80% of the region`s populace the use of this technology. This is a massive marketplace possibility that fintech organizations are going after to disrupt conventional banks via way of means of presenting new methods to transact with cash thru cell devices.

The biggest banks withinside the UAE are each presently looking for new leadership, because of this that they`re possibly to go through massive adjustments withinside the coming months and years. They`ll want to evolve to this developing wave of fintech disruption thru cell apps to hold being aggressive with different economic establishments all through the region.

Swarm is a blockchain-primarily based totally crowdfunding platform that`s primarily based totally in Switzerland. Their cutting-edge investments encompass the Dubai-primarily based totally logistics organization called Nomadic Think Tank. Starting in 2014, they`re additionally worried about Spacebar and RefToken.

These days raised $five million thru a crowdfunding marketing campaign to assist enlarge into worldwide markets which include Africa, Asia, and the Middle East.

The UAE has emerged as a worldwide chief in innovation throughout more than one industry, and it`s now no longer sudden that Fintech is amongst those new regions of possibility. The USA is presently domestic to a few massive names on this industry, consisting of Credit and ePayments. 

Technology Startups Poised to Disrupt Traditional Banking  

 We are witnessing a dramatic shift from traditional banking to online platforms based on blockchain technology. 

 Banks themselves are generally not business innovators in this space and are not always the first to introduce innovative technologies. Instead, they are startups that provide solutions to established banks by finding new ways to disrupt the financial services industry and offering alternative remittance methods. 

 Innovative startups are changing the way people think about investing. Upstart is a new platform that connects investors and students who need help paying their tuition in exchange for an agreed-upon percentage of income after graduating and starting a full-time job. 

 The UAE government has already developed an Emirates blockchain strategy designed to use this technology in various ways to improve the country’s overall national competitiveness. This initiative is expected to lead to further disruption of financial technology in various sectors and industries of the economy. 

 technology-based solutions give people new ways to save money and make investment choices. ShareRing is an Australian-based startup but is coming up with a new solution designed specifically for the sharing economy. 

 They have also partnered with 5Miles, one of the largest fintech companies currently operating in China. Their goal is to provide new ways for both companies to leverage technology and grow rapidly in the future. 

Blockchain technology is redefining the future of investing 

 The UAE desert climate is forcing people to use solar energy as an economical solution to their energy needs, so more innovative solutions are needed to help solve this problem. The blockchain can solve this problem by creating new opportunities for those who want to participate in this industry and profit by selling surplus energy in the peer-to-peer market. The Dubai Future Accelerator Program was created three years ago to encourage startups to find innovative ways for people to save money and redistribute it in new ways. 

Dubai has the potential to become a leading global hub for blockchain development, providing a welcome revival to the economy by creating more high-paying jobs. This gives them a competitive edge over countries such as India, China, and Japan, which also seek to establish themselves as leading hubs for technology.

Although blockchain technology is still in its infancy, it is poised to be a saving grace for those affected by economic downturns and other types of economic hardship. And without widespread approval from governments and large corporations, startups like ShareRing are working hard to create solutions that will improve the lives of people around the world. 

 By adopting this technology, governments will create a more consistent and stable economy that is better prepared for future challenges, including global warming and other environmental issues. And working with blockchain startups like ShareRing will help people save money in new ways and improve their economic outlook on the global stage.

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