Financial
The Future of Finance: Confluence of Digital Banking and Payments-as-a- Service
Authored by: Manasvi Ghelani, Associate Director – Customer Engagement, Frost & Sullivan
The Ever-Evolving Financial Landscape
Gone are the days of long lines at the bank and physical cheques. Today, a simple tap on your phone can manage your finances, from bill payments to investment tracking. This digital revolution, driven by Digital Banking and Payments-as-a-Service (PaaS), has transformed the financial landscape for consumers and businesses, delivering unprecedented convenience and security. But like every great transformation, there will be winners and losers. Understanding these evolving trends and their strategic implications is crucial for any participant in the financial landscape.
Digital Banking: Convenience Redefines Finance
In an age where speed and security are paramount, traditional banking practices must evolve a mile a minute. Today, banks deliver financial products and services through electronic channels, primarily mobile applications and web interfaces, virtual wallets, peer-to-peer payments, and personalized financial management tools. Alongside, access to smartphones and high-speed internet connectivity has only fuelled the growth of digital banking, enabling customers to perform financial transactions anytime, anywhere. According to Ericsson Mobility Report [1], the GCC is forecast to have 62 million 5G mobile subscriptions by the end of 2026, accounting for nearly three-quarters of all mobile subscriptions in the Gulf region at that time. So, it is not surprising that 90% of consumers prefer to use mobile banking applications and digital tools to manage their finances, as found in the Digital Banking Attitudes Survey conducted by Chase in 2023 [2].
To understand how Digital Banking became fundamental, we need to track back a few decades. In 1980, United American Bank, a community bank headquartered in Tennessee, partnered with then- electronics giant Radio Shack to offer the first home banking service via a special modem. By 2006, internet banking became commonplace in the USA. The East caught up in no time.
The United Arab Emirates has emerged as a global leader in digital banking adoption, ranking sixth in penetration according to Finder, an Australian financial comparison website. This trend is reflected in a 40% decline in branches of locally incorporated banks over the past decade, with only 489 remaining at the end of December 2023, as reported by the central bank [3].
The benefits of digital banking are undeniable. For banks, it provides significant cost savings, allowing them to invest in innovation and improve profitability. For customers, it offers convenience, accessibility, and real-time control over their finances. Millennials and Gen Z, the dominant demographic cohorts, are digital natives who expect a seamless online experience. Traditional banks risk losing these tech-savvy customers if they fail to offer robust digital solutions. Frost & Sullivan analysis shows that the global market for mobile commerce was valued at about USD 814 billion in 2021 and is expected to grow by 32% between 2022 and 2030. Hence, these platforms leverage cutting-edge technologies such as cloud computing, artificial intelligence (AI), machine learning (ML), and biometric authentication to deliver personalized experiences and enhance security.
And wisely enough, most banks prefer to focus on their core banking activities and partner with specialised cloud platform providers for the non-core functions in the payments value chain, such as transaction processing, gateway integration, regulatory compliance, information security management, etc. This infrastructure is Payments-as-a-Service (PaaS).
PaaS eliminates the need for expensive in-house payment infrastructure development and maintenance, resulting in significant cost savings. Businesses can quickly integrate payment functionalities into their platforms with minimal development effort, accelerating time to market. The solution is designed to scale with business growth, accommodating increased transaction volumes and evolving payment needs.
Competitive Landscape Widens Opportunity Horizon
PaaS facilitates the rise of embedded finance, where financial services are seamlessly integrated into non-financial applications. This allows a wide array of businesses – from ride-hailing services to online marketplaces – to offer payment functionalities within their platforms, creating a smooth and frictionless user experience.
Traditional banks, fintech startups, technology giants, and payment processors are all exploring cutting-edge payment technologies like blockchain and tokenization to stay ahead of the curve. Traditional banks in the Middle East, such as Emirate NBD, Mashreq, Qatar National Bank, Al Rajhi Bank, and others, are increasingly investing in digital transformation initiatives to stay competitive in the digital age. They are enhancing their digital banking platforms and partnering with fintech companies to offer innovative services to customers.
Neo Banks in the region that initially were subsidiaries of established traditional banks now have digital-only competitors like Wio, Zand, YAP, and others, creating a tremendous impact on consumers owing to their new business model, which is customer-centric, operationally efficient, and profitable at scale.
Fintech startups are disrupting the traditional banking sector with their agile and customer-centric approach. These startups are leveraging technology to provide a wide range of financial services, including digital banking, lending, wealth management, and payments. Some notable players in the Middle East region are Mamo, Tabby, Tamara, Telr, and NymCard.
Technology giants such as STC Pay, Etisalat Digital, Du Telecom, and Careem Pay are some of the regional players that have expanded into the digital banking and payments market. These companies offer digital wallet solutions, allowing users to make secure payments using their smartphones.
Payment processors like Tap Payments, Checkout.com, and Network International play a critical role in enabling digital payments for businesses of all sizes. These companies provide payment processing services, payment gateways, fraud prevention solutions, and other payment optimization tools that streamline the payment process for merchants and consumers alike.
This digital revolution presents a double-edged sword. Agile incumbents can unlock unprecedented opportunities, while those who do not adapt will face momentous challenges. Tech-savvy newcomers will erode traditional revenue streams, and lower barriers to entry will intensify competition within the sector.
Regulatory Frameworks for Checks and Balances
Many countries in the Middle East region have stringent licensing requirements for digital banks and payment service providers. These regulations often involve capital requirements, cybersecurity standards, and compliance measures to prevent money laundering and terrorist financing. In addition to that, a thorough understanding of local laws and regulations, proactive engagement with regulators, and robust compliance measures to mitigate risks and ensure long-term success are also a must.
Having said that, regulators are playing their part to promote and support digital banking. The UAE Digital Economy Strategy, Egypt Vision 2030, Qatar Vision 2030, Mauritius Vision 2050, Saudi Vision 2030 are all strategic initiatives that will reshape the financial services landscape in the region positioning the region as a hub for digital banking and PaaS innovation. They distinguish themselves by embracing Islamic finance principles, driving government-led digital transformation initiatives, investing in digital identity solutions, facilitating collaboration between banks and fintech startups, and adopting real-time payments. Open banking, for instance, championed by regulators across the region, will empower consumers with more control over their financial data. This will foster innovation and competition, leading to a broader range of enhanced financial services from third-party providers. Blockchain-powered solutions such as smart contracts and decentralized finance (DeFi) will reduce the risk of fraudulent activities and provide customers with a high level of trust in digital banking systems.
To conclude, the future of digital banking and Payment-as-a-Service is being shaped by a confluence of megatrends, including digital transformation, open banking, personalization, fintech ecosystems, security and trust, financial inclusion, and regulatory evolution. By fostering innovation and prioritizing customer-centricity, stakeholders can shape a future of finance that is inclusive, resilient, and sustainable for all.
References:
- Ericsson Mobility Report. https://www.ericsson.com/en/reports-and-papers/mobility- report/closer-look/gcc
- Consumers Rely More and More on Mobile Banking, New Chase Study Finds.
Https://Media.Chase.com/. https://media.chase.com/news/consumers-rely-more-and-more-on- mobile-banking
- Central Bank of UAE. Monetary, Banking & Financial Markets Developments, February 2024. https://www.centralbank.ae/media/v5hn2ulx/uae-monetary-banking-financial-markets- developments-report-q4-december-2023.pdf
Financial
MultiBank Group and Khabib Nurmagomedov Launch an Exclusive Worldwide Multi-Billion-Dollar Joint Venture to Build the World’s First Regulated Tokenized Sports Ecosystem
Multibank Group, the financial derivatives institution, has entered into an exclusive worldwide multi-billion-dollar joint venture with global sports icon and undefeated UFC champion Khabib Nurmagomedov (29-0) to create a first-of-its-kind regulated ecosystem connecting global finance, sports and technology.
The partnership will culminate in the creation of a multi-billion-dollar joint venture, MultiBank Khabib LLC, uniting two global powerhouses: MultiBank Group, a leader in regulated financial excellence, and Khabib Nurmagomedov, undefeated in the octagon and whose influence extends far beyond sport. The company will operate from MultiBank Group’s headquarters in Dubai, building a worldwide network of high-end sports ventures and real-world digital assets. This structure fulfills the vision of MultiBank Group Founder and Chairman, Naser Taher, for an exclusive global joint venture, granting MultiBank exclusive rights to develop and promote projects under the Khabib Nurmagomedov brand name, including the development of 30 state of the art Khabib gyms, Gameplan and Eagle FC brands.
The entire venture is backed by MultiBank Group’s regulated digital ecosystem and powered by its cornerstone $MBG Token being the driving force behind its expanding portfolio of real-world-asset (RWA) technologies and initiatives.
Naser Taher, Founder and Chairman of MultiBank Group, stated: “From the UAE, we are shaping a new blueprint for the business of sport through the regulated tokenization of real-world sports assets (RWSA). Together with Khabib Nurmagomedov, and powered by our ecosystem token, $MBG, we are uniting finance and athletics into a single transparent, technology-driven ecosystem — one built on trust, innovation, and the strength of the MultiBank framework. This initiative proudly aligns with the UAE’s vision of becoming a global hub for digital asset innovation and world-class sports.”
Khabib Nurmagomedov added: “This partnership with MultiBank Group is built on shared values of strength, respect, and discipline. Together with Multibank, we are building real global opportunities that go beyond sport, empowering athletes, and fans through a regulated and innovative digital ecosystem. This is only the beginning.”
Financial
Edenred UAE strengthens market leadership with financially inclusive payroll solutions, C3Pay serving 2.5 million users
Edenred, a leading digital platform for services and specific purpose payments and the undisputed market leader in salary processing and financial inclusion for the underbanked in the UAE, continues to reinforce its leading position in payroll card solutions, value-added financial services, and compliance-first innovation under the leadership of newly appointed Managing Director Claudio Di Zanni.
As the first company authorised by the Central Bank of the UAE to process WPS salaries, Edenred UAE has long positioned financial inclusion as the foundation of its offer in UAE — ensuring that access to financial services isn’t an added benefit, but a guaranteed outcome of getting paid.
Trusted by both large enterprises and a growing base of SMEs, the backbone of the UAE economy, Edenred UAE now serves more than 15,000 corporate clients, 2.5 million cardholders, and partners with over 10 banks and 20 financial institutions. Demand has been strong in sectors such as manufacturing, construction, and facility management—where reliability and seamless execution are critical.
Edenred UAE salary cards, C3Pay, powered by RAKBANK and part of the Mastercard network, can be used globally. A key driver of Edenred’s adoption success is its unmatched expertise in on-site training at worker accommodations, which helps large enterprises efficiently onboard thousands of employees. This ensures that workers understand how to activate their cards, utilise app features, and engage with key financial tools.

Claudio Di Zanni, Managing Director, Edenred Middle East, said: “Edenred UAE has set the benchmark for payroll and financial access in the region with digital innovative solutions, great ambitions and internationally committed teams. Our ambition now is to extend that lead by deepening trust with our clients, scaling services that matter to end users, and ensuring full compliance in a fast-evolving regulatory landscape. With unmatched reach, an expanding client base, and a proven model for financial inclusion, we are ready to shape the next phase of the region’s salary card ecosystem — developing its full potential and contributing to giving workers who were previously excluded from the financial system a secure, transparent, and dignified way to manage their money.”
Edenred UAE remains the reference in payroll solutions, as it continues to scale high-impact services, deepen banking partnerships, and reinforce its role as the benchmark for secure, compliant, and ethical financial access in the UAE and beyond. With a sharpened focus on innovation and strengthened leadership, it is entering a new chapter of platform excellence as the backbone of financial access for the UAE’s workforce.
Financial
Dhruva urges UAE firms to focus on data sovereignty in e-Invoicing transition
The 2026 mandate is an opportunity for businesses to align compliance with stronger data governance standards
With the UAE’s mandatory eInvoicing framework set to launch in 2026, Dhruva urges taxpayers to move beyond data residency considerations and focus on the critical issue of data sovereignty when selecting accredited service providers (ASPs). When adopting any cloud solution, it’s crucial to take the UAE National Cloud Security Policy into consideration, which provides a comprehensive checklist for cloud customers. This policy details necessary arrangements with cloud service providers, outlines contract requirements and sets cloud security requirements and enforcement measures.Dhruva is a leading tax advisory firm specializing in VAT, corporate tax, transfer pricing, and international taxation in the Middle East.
The eInvoicing rollout, based on the OpenPeppol five-corner model, will route all business-to-business (B2B) and business-to-government (B2G) invoices through ASPs that validate, exchange, and report tax-relevant data directly to the Federal Tax Authority (FTA). This shift makes the question of where data lives and who ultimately controls it – a matter of legal, operational, and financial consequence.

Commenting on the development, Nimish Goel, Partner and Head of GCC, Dhruva Consultants, said: “Businesses cannot afford to mix data residency with sovereignty. Hosting tax data within UAE data centres is necessary, but it does not, by itself, guarantee compliance or protection. True sovereignty means that encryption keys, administrative controls, and audit logs remain fully under UAE jurisdiction and cannot be accessed by foreign authorities. For taxpayers, this distinction is not technical—it is a fundamental risk-management decision.”
Dhruva highlights that this distinction is becoming urgent for three reasons. First, the UAE has enacted a robust Federal Data Protection Law (PDPL) and sector-specific rules that demand explicit safeguards on cross-border data flows. Second, with eInvoicing deadlines approaching, taxpayers must evaluate how each provider’s hosting model aligns with UAE data hosting requirements, sovereignty and National Cloud Security Policy laws. Finally, the operational reality is that migrating data and applications between clouds is not seamless. Factors such as data gravity, proprietary platforms, and audit trail integrity make switching providers slow, risky, and expensive.
“E-invoicing will not only redefine how businesses transact with government authorities, but also how they safeguard their most sensitive tax and financial records,” Goel added. “Companies need to recognise that the choice of ASP is a long-term strategic decision. The location of the cloud operator, the jurisdiction under which they fall, and the location of their control plane and encryption keys all impact compliance and data security far more than the physical location of the server rack.”
Dhruva advises taxpayers to approach ASP selection with a structured due-diligence process aligned with the policy for cloud customers in the UAE. This policy covers key domains such as governance, data location and sovereignty, interoperability, security incident and access management, data confidentiality, architecture and infrastructure companies should ensure that all storage, backups, and logs are held within UAE borders, that operational control and key management remain in UAE jurisdiction, and that providers comply with the UAE’s Peppol interoperability standard. Audit logs should be immutable, recovery sites must be located in the country, and exit strategies need to be documented and tested, with transparency on egress costs.
“Taxpayers cannot treat this as a simple IT procurement,” Goel emphasized. “It is a compliance and sovereignty choice that will determine their risk exposure for years to come. The time to ask these questions is now—before companies find themselves locked into providers that may not meet their future regulatory and operational needs.”
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