FINTECH - 2017

FINTECH

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Introducing contactless payments to the GCC Rapid interest in mobile payments on the rise B. Chandrasekhar, CEO of Arab Financial Services (AFS), a leading payment provider in the MENA region and FinTech enabler, discusses the developments taking place in the arena of contactless solutions. Excerpts:

Flexibility and convenience at your fingertips Fintech holds wealth of possibilities as residents adopt tech-savvy attitude  Farhana Chowdhury

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intech, also known as financial technology, is gaining momentum in the business world for the sophisticated landscape it has created in the financial sector.

Thanks to the internet revolution, Fintech opened up possibilities to automate insurance, trading and risk management using computer technology.

To date, Fintech is set to experience a growth of 270 per cent in the Middle East this year, according to a report published by Wamda Research Lab and Payfort.

Titled State of Fintech, the report further stated that the value of the sector would grow 2.5 times by the end of this year with an expected investment of over $50 million in FinTech. The estimate demonstrates the region’s transition to emerging

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FinTech start-ups rise in the MENA region Source: State of Fintech report The MENA region witnessed a strong growth in FinTech start-up creation. Based on the assumption that the payment sector will start consolidating and seek a similar growth trajectory for lending and second wave start-ups, at least 250 FinTech start-ups will be launched by the year 2020.

markets. Looking ahead, a second wave is set to enter the sector as

crowdfunding platforms continue to rise. These start-ups are expected to enter the platform via wealth management, insurance, remittances and solutions based on blockchain. The UAE, in particular, leads as the top country in the Middle East that promotes the rise of FinTech start-ups.

As mobile penetration in the UAE reaches an all-time high, consumers are becoming more confident in making purchases via their smartphones.

Retailers and outlets are readily adopting various modes of digital payments, and further appeal to consumers with attractive reward programmes and other offers.

With a secure network in place in the UAE, both parties can rest assured that their privacy is guaranteed, and no external individuals can pose any threats or loss of finance.

— farhana@khaleejtimes.com

How is the FinTech revolution shaping up in the region?

The entire region is feeling the ripples of the FinTech revolution. In fact, the payment industry is going through a disruptive change moving towards a cashless society. Originally dominated by cash and plastic, there is a keen and rapid interest and movement towards mobile payments. Our region is no different to the rest of the world.

Avid smartphone users, as well as regional customers, today want online services and financial apps that make life easier, and banking faster and cheaper.

This will provide financial access to previously unbanked populations, and its contribution to financial inclusion has been critical.

This is also seen at the highest levels, with regional regulators also taking an active role in encouraging FinTech innovation, offering sandboxes and tie-ups with global FinTech developers and solution providers.

Tell us more about these contactless, frictionless solutions At AFS, we work hard to ensure our clients are ahead of the technology curve.

We are transforming their propositions to be in line with the B. Chandrasekhar digital and mobile CEO of AFS age. This year, AFS has been supporting its clients — banks and telcos — through the FinTech path, with the introduction of more contactless solutions.

We introduced EasyPay, the first frictionless payment platform to launch in Bahrain with near-field communication payments. We will soon launch a mobile wallet with Batelco, the leading telecom provider in Bahrain. It will be the first to offer unique features and benefits to customers such as cashback on purchases, cross-border remittances, and wallet-towallet money transfers in a secure and convenient manner. The AFS-powered wallet will utilise the latest Quick Response (QR) technology and have near field communication (NFC) capability.

Sael Al Waary, Chairman of AFS, at the AFS FinTech Conference in March.

The AFS FinTech conference was a huge success this year, should we expect another one?

Absolutely, we will be hosting the Second Regional FinTech conference in 2018 and we would like to see you there.

FINTECH

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Fintech Start-up Trriple to launch the Newest Mobile Wallet at Gitex Trriple aims to make mobile payments accessible to everyone in a convenient and easy way  Ishtiaq Ali Mehkri

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rriple mobile wallet is the way to go as people opt for hassle free digital payments, and would like to experience an enhanced offering. From secure encryption to a convenient setting in however way you want your payments and transactions done, Trriple is an indispensable option.

Excerpts from an interview with Paolo Gagliardi, Chief Executive Officer, Trriple Payments LLC:

Tell us about the specifications of the technology that you have for effective and secure digital financial transactions?

Starting from customer registration process and down to functionality, our three-layered s ecurity covers data ,

communication and application in a seamless and safe method, and is fully compliant with the UAE’s Regulations. Users’ data are stored securely into our own software solution, located into a Data Centre in the country. The Data Centre respects the highest physical and digital security international standards, while our own solution is ISO/IEC 2700 certified IT security to protect customer and partner data. The security level is comparable to banks.

What scope of business do you envision as the concept of digital wallet takes roots?

In the UAE, 40 per cent of people are in the age group of 17 to 35, known as the Millennials, while an additional 48 per cent are BoP workers.

Together they constitute more than three-fourth of the total population, and are all unbanked or just underbanked. On the other hand, the c u r r e n t penetration of smartphones is 85 per cent. The combination of these two factors creates strong conditions for Trriple to reach most of the people in those two main segments, and enable them to own their own wallets and have direct access to a variety of services, which are not available today. While Trriple enables mobile payments as a new channel, we envision all the verticals adopting to transform digitally and leverage this new

neutral mobile channel capability to extend their reach and improve their UX. In turn we expect a network effect that will present a valuable ecosystem to benefit all the participants.

The first segment is the early adopter of the new technologies, using Internet through different devices is a crucial part of their daily life. According to VISA, Millennials in the UAE spend 6.5 hours of their day on Internet and the use of smartphones is a general trend among almost all of them.

Millennials tend to use applications and web portals for ecommerce purposes. In fact, 76 per cent of Millennials in the UAE use the Internet for that purpose, and 55 per cent use it for online bill payments.

Trriple aims to capture the attention of this market, by providing a customised application with attractive promotions and key functionalities, that can be useful in their daily routine, not only to purchase goods and services, but also to access different transaction facilities and financial services.

The second segment works in low range positions for different industries, such as manufacturing, construction, cleaning, and others.

Most of them send remittances abroad every time they receive their salaries, whether it is monthly or fortnightly. Labour workers send from 60 to 80 per cent of their salaries to their home countries, and according to the Central Bank of UAE the total remittance sent from the UAE in 2016 was Dh160.8 billion. Trriple aims to capture this population with a convenient remittance offer at fair prices, which can be available for them anytime and anywhere.

What are the innovative offerings

of Trriple Payments LLC? Trriple’s purpose is to enable unbanked and under-banked segments to achieve financial inclusion and a Cash-Lite economy. The way to achieve this is to offer a solution that connects the fragmented traditional payment systems, mainly based on legacy banking. The various alternatives we can experience on the market today are largely — if not totally — made of additional layers built on top of existing banking solutions. In other words, the main source of funding remains the bank account and/or a plastic card, which not only means that users must already have access to these services, but that the merchants are subject to pay high fees for each transaction.

Trriple’s mobile wallet to reach the underserved segment does not need any bank account or card to execute payments. On top of this, the Trriple’s mobile Application is pivotal to fulfil users’ needs from one single entry point: from sending money to each other’s, to sending money to their families in their home countries, to paying bills and goods, online or physically at the shop. All in real time, in a safe and easy way, and for a fraction of the cost. Finally, Trriple’s experience can be easily exported and reproduced across the Gulf or into other countries where favourable conditions exist.

What role do you see for your company in line with Dubai’s smart government goals?

Trriple will play a pivotal role as the first neutral general mobile wallet in the market to speed up the Smart Government goals. As stipulated by the UAE leadership, the country will strive to become a cashless society by 2020, and it

E-CONNECT: Paolo Gagliardi, Chief Executive Officer, Trriple Payments LLC will enable digital access to all the services offered to the population.

This vision has created an immediate cascaded effect, when all the government, semigovernment and private entities have taken notice of Trriple’s smart digital solutions. Furthermore, the main objective for the UAE is to achieve people happiness, and technology is one of the key tools to realise this vision.

Trriple is an enabler; throughout technology we naturally realise this ambition. In fact, regardless of the specific business and sector, the adoption of a mobile wallet allows cash collection from the market and transforms it into digital currency, which is immediately and always available to the citizens to be used for payments. Be it an Airtime TopUp, International Remittance of a sum on money or the payment of a bill, with Trriple there is no need to use cash any longer. This will increase the money in circulation with an immediate benefit on the economy, but will also allow control, from the

monthly individual and family expenses up to the compliance with AML and ATF Laws and Regulations, creating a safer and better society.

How many financial, commercial and merchandise entities are linked with Trriple?

Trriple has already secured some key agreements with various ecosystem players. These agreements will allow the successful launch of our wallet.

Growing new partnerships is a continuous process, which aims to enlarge the range or services and to offer our customers a set of more competitive and convenient options to choose from. For this reason, we are and will always be at work to secure new deals and agreements with government entities, financial institutions, merchant networks, and technology vendors. Our customers will soon benefit from this process, starting very soon with the next release of our wallet.

— mehkri@khaleejtimes.com