du Pay: Shaping the UAE’s Fintech Future

Integrator Media had an exclusive interview with Nicolas Levi, CEO, du Pay

How does du Pay see the fintech space of the country?
The fintech landscape in the UAE is remarkably advanced, driven by regulatory innovation, supportive government policies, strategic investments, and a strong focus on technology adoption. The UAE has created a collaborative environment where regulators, financial institutions, and fintech startups work together, positioning the country as a global hub for fintech innovation. The growth of the fintech sector in the UAE has been phenomenal, with projections indicating the market will escalate from USD 3.16 billion in 2024 to USD 5.71 billion by 2029, reflecting a compound annual growth rate (CAGR) of 12.56%.

However, there remains a significant portion of the population that is underserved, despite high smartphone penetration. These individuals are yet to fully embrace digital channels, including from local payments to international money transfers. With the UAE’s impressive $39.7 billion in outward international money transfer volumes, du Pay is poised to tap into this extensive market by offering services that prioritize simplicity and customer-centric experiences. It aims to become a key payment solution for international transfers, digital payments and salary solution, especially for the underserved segment.

How is du Pay leveraging du’s existing customer relationships to offer financial services?

Over the past 18+ years, du has established itself as a strong, trusted brand, ranking as the 3rd strongest brand in the UAE this year. This strong brand presence of du gives du Pay a significant advantage in terms of customer acquisition. Leveraging its extensive, diverse customer base offers du a significant edge in fintech service promotion, avoiding the extensive customer acquisition and retention costs typical for traditional financial institutions. Furthermore, its widereaching distribution mechanisms extend fintech services’ reach, including to underbanked or unbanked populations, thus advancing financial inclusion.

du Pay is designed to cater to the evolving needs of a diverse clientele, ensuring a wide range of accessible and user-friendly financial solutions. The service suite encompasses bill payments, mobile recharges, and offers competitive international money transfer options to over 200 countries. This comprehensive array of services is crafted to not only attract du’s existing prepaid customers through rewards, such as substantial data bonuses, but also to draw new users seeking convenience and efficiency in their financial transactions. Beyond the core offerings, du Pay stands out through its commitment to simplicity in user experience. Its 100% digital, two-step onboarding process is simple and further simplified to just 1 step for existing du customers. Licensed by the Central Bank of the UAE, the app is fortified by robust security infrastructure ensuring users enjoy a seamless and safe transaction experience, further supported by the availability of the app in multiple languages, catering to the UAE’s multicultural resident base.

Can you provide examples of du Pay’s successful fintech partnership initiatives in the Middle East and Africa?

du Pay has formed strategic partnerships with leading players to enhance its international money transfer and digital payment offerings. For instance, its collaboration with Western Union reaffirms its commitment to providing seamless international transfers. With Western Union’s extensive global money movement network and du Pay’s user-friendly app, crossborder transactions have become effortless and hassle-free. du Pay is also working with leading mobile money providers in the respective countries, like JazzCash in Pakistan, to offer greater benefits to its customers.

du Pay’s partnership with Emirates NBD enables creation of wallets with a unique IBAN for each customer, enabling a seamless money receipt experience, facilitating salary payments for domestic workers. Additionally, its partnership with Visa has enabled it to launch digital (including physical) prepaid cards in the UAE through the du Pay app. These Visa cards provide secure, accessible, and inclusive payment solutions, promoting financial empowerment for all UAE residents and promoting digital advancement within economy.

In what ways do fintech platforms driven by telecom companies such as du Pay have an advantage over traditional financial services providers in the fintech sector?

Fintech platforms driven by telecom companies like du Pay offer several advantages over traditional financial services providers. It is established brand and history foster trust among customers, partners and regulators, while its vast telco customer base provides a ready audience for fintech services. du Pay relies on the huge customer base of the telco, it’s distribution network and knowledge about the customers and different segments. The millions of touch points of du, being one of the leading telcos is also a differentiator for du Pay. Thus, the telco services like recharge, bill payment and international calls are natural touch points to enhance customer experience from telco to financial services seamlessly. With a robust network and security infrastructure, du Pay ensures reliable and secure transactions, which a lot of early players in the same domain may grapple with. Additionally, its longstanding brand and regulatory compliance bolster confidence among stakeholders.

What are the potential challenges du Pay might face when expanding their fintech services?

Expanding into fintech services comes with its potential obstacles, but strategically managing these challenges is key to success. The transition into the fintech sector undeniably requires rigorous adherence to regulatory and compliance standards designed to ensure the protection and privacy of consumers. du Pay is already taking proactive steps to conform to these stringent requirements, which are crucial in maintaining the integrity of financial systems. du Pay is backed by high grade security measures and compliance standards to ensure secure transactions for its customers. As du Pay expands, the focus will also shift to creating disruptive propositions in an increasingly competitive market, ensuring its services create stickiness amongst existing customers and appeal to everyone, including non-du customers.

How do you foresee the collaboration between du Pay and traditional financial institutions evolving in the fintech space in the longer future?

The evolving partnerships between telco-led fintech companies like du Pay and traditional financial institutions, driven by technological advancements and changing consumer expectations, will lead to more inclusive, efficient, and innovative financial services. du Pay can facilitate access to financial services for populations that traditional institutions might not reach, especially because of du’s wide and accessible network. It is also working with key players to not only provide access but also raise awareness and promote financial literacy. Additionally, through partnerships with robust systems powered by du, du Pay envisions the creation of a resilient ecosystem. These collaborations enable it to swiftly introduce innovative solutions to the market, leveraging its agility as a fintech player. The key to success will be leveraging each party’s strengths and navigating the regulatory landscape effectively to create mutually beneficial and sustainable collaborations. As exemplified by initiatives with its strategic partners like Western Union, Visa, etc., the journey towards a more interconnected, innovative, and inclusive financial ecosystem is well underway.