The financial technology (fintech) sector is witnessing a significant collaboration with the partnership between UAE’s Careem Pay and iPiD to launch remittance services in India. This move marks a strategic expansion of Careem Pay’s services and underscores the growing importance of remittances in the global financial ecosystem.
Introduction to Careem Pay and iPiD
Careem Pay
Careem, a leading multi-service app in the Middle East, is the parent entity of Careem Pay. Careem has been simplifying and improving the lives of people across the region since 2012. With a presence in over 70 cities across 10 countries, it offers diverse services ranging from ride-hailing to food and grocery delivery. Careem Pay, a part of this ecosystem, focuses on simplifying payment experiences, including international remittances.
iPiD
iPiD, on the other hand, is a venture-backed fintech start-up that aims to revolutionize global payments. With solutions like Validate and Fetch, iPiD enhances the payment journey, emphasizing cost reduction, fraud mitigation, and overall customer experience improvement. It adheres to stringent data security and localization requirements, offering a single API solution for its clients.
The Partnership: Streamlining Remittances
The Collaboration
The collaboration involves integrating iPiD’s technology with Careem Pay to enhance its international remittance capabilities. This partnership is especially focused on the Indian market, considering the significant Indian expatriate community in the UAE, which numbers over 3.554 million as of August 2023.
Breeze Feature
A pivotal aspect of this partnership is the introduction of the “Breeze” feature. This innovation simplifies the remittance process by requiring Careem Pay users to input only the account number of the recipient. The feature automatically verifies the account number and displays the recipient’s name for customer confirmation, adding a layer of security and simplicity to the transaction.
Impact on the Remittance Market
Expansion of Services
Careem Pay initially launched its international remittance service for UAE customers to send money to Pakistan. With the new partnership, the service now includes India, allowing for instant transfers to one of the largest remittance corridors in the region. Plans are underway to further expand this service to other key remittance corridors like the Philippines and Egypt.
Market Response and Statistics
The response to Careem Pay’s remittance service has been overwhelmingly positive. The service has recorded a healthy user retention rate of 77%, with an average transaction time of just 15 minutes. Additionally, there has been a significant 40% month-over-month growth in remittances since its launch.
Conclusion: Redefining the Remittance Experience
The partnership between Careem Pay and iPiD is more than just a business collaboration; it’s a step towards redefining the remittance experience for users globally. By focusing on user experience and security, this alliance aims to address the two most crucial differentiators in cross-border transfers. The emphasis is on providing innovative, simple, fast, and secure transactions that cater to the needs of a diverse and growing expatriate community.
This move is indicative of the dynamic nature of the fintech sector and its ability to adapt and innovate in response to market needs. As the fintech landscape continues to evolve, partnerships like these will likely become more prevalent, shaping the future of financial services and international money transfers.
