Peer-to-peer (P2P) payments like Venmo, PayPal and Cash App have grown in popularity in recent years, offering fast and convenient solutions that allow customers to send and receive money anywhere and whenever.
FinTech Mamo from the United Arab Emirates (UAE) is contributing to this growing trend in the Middle East and North Africa (MENA), where there is a need to disrupt the cash-on-delivery process still prevalent in economies across the region to money-intensive to drive P2P payment growth for individuals and small and medium-sized enterprises (SMEs).
“SMBs are fed up with cash on delivery because of the operational hassles associated with it. For example, if you are delivering products or services and your customer comes to make a payment and they don’t have the correct change, you have to fire your driver multiple times,” Imad GharazeddineUAE-based FinTech CEO mamosaid, highlighting the challenges in an interview with PYMNTS.
This leads to a significant but hidden cost, he said, which the FinTech company seeks to eliminate through its Mamo Pay products for individual money transfers and Mamo Pay for businesses.
“Mamo Pay for Business is here to essentially simplify these [money] flow for SMBs so they can spend time focusing on what they do best, rather than focusing on reconciliations, accounting and basically chasing customers for payments and invoices,” said he added.
And according to Gharazeddine, most of the demand and interest they are seeing in the market is in SME payments due to the frequency and volume of these payments, even though consumer digital wallets continue to gain. ground.
“On the P2P side, you might have to pay back a friend maybe two or three times a week at most, but on the business payments side, we have customers transacting up to 500 times a month, which causes the pain point to immediately become multiplied by 500, making it a much more compelling problem to solve,” he noted.
Fear and risk aversion hinder partnerships
According to Gharazeddine, the biggest challenge for Mamo and most FinTechs in the region is the lack of close partnerships that are necessary for the ecosystem to thrive.
“It is important that the whole ecosystem encompasses [partnerships] because no company can handle it [challenge] on their own,” he argued, adding that “the sooner we do that, the sooner I believe the whole ecosystem and economy will be able to deliver competitive products and products more useful for citizens and residents”.
At the root of this setback is fear and risk, he said, referring to the high risk aversion of compliance departments, banks and financial institutions.
It’s going to take a shift from a mindset based on risk and fear to an openness to partnership opportunities to start becoming a reality, Gharazeddine said.
But in the meantime, the Dubai-based FinTech will focus on bringing in more SMEs and expanding into Saudi Arabia, one of the region’s top FinTech markets.
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