Careem Pay, the financial services arm of the Careem app, has introduced a new remittance service enabling United Arab Emirates residents to send funds directly to bank accounts in Egypt. This development aims to provide a swift and cost-effective alternative to traditional banking methods for the substantial Egyptian expatriate community in the UAE.
The UAE hosts a significant number of Egyptian expatriates, positioning Egypt among the top five destinations for remittances from the UAE. In recent years, the remittance flow from the UAE to Egypt has been estimated at approximately $10 billion. The introduction of Careem Pay’s service is expected to streamline these financial transactions, offering a more efficient means for expatriates to support their families and manage personal finances.
Mohammad El Saadi, Vice President of Careem Pay, highlighted the service’s advantages, stating that the platform offers some of the most competitive rates in the market, being 50% more affordable than traditional banks. He emphasized the speed of transactions, with some transfers being completed in mere seconds. Additionally, Careem Plus members benefit from rates better than those available on standard platforms, potentially saving users substantial amounts with each transfer.
The launch coincides with the onset of Ramadan, a period traditionally associated with increased remittance activity as individuals enhance financial support to their families for charitable purposes and upcoming Eid celebrations. This timing is strategic, aiming to cater to the heightened demand for swift and reliable money transfer services during the holy month.
Careem Pay’s expansion into the Egypt corridor is part of a broader strategy to simplify financial services in the region. The platform already facilitates money transfers to major remittance corridors, including India, Pakistan, the United Kingdom, Europe, and the Philippines. The addition of Egypt underscores Careem Pay’s commitment to addressing the financial needs of diverse expatriate communities within the UAE.
To utilize the new service, users can download or open the latest version of the Careem app and select the ‘Send Money’ feature on the home screen. The process is designed to be user-friendly, enabling customers to complete transactions with just a few taps on their smartphones. This ease of use is expected to attract a wide user base, particularly those seeking convenient and cost-effective remittance solutions.
The remittance market in the UAE is substantial, with numerous expatriates regularly sending money to their home countries. Traditional banking channels often involve higher fees and longer processing times, which can be a deterrent for users. Careem Pay’s entry into this space introduces a competitive alternative, potentially reshaping the remittance landscape by prioritizing affordability and speed.
The expansion of Careem Pay’s services aligns with the UAE’s vision to enhance digital financial services and promote financial inclusion. By offering accessible and efficient remittance options, platforms like Careem Pay contribute to the broader goal of a cashless economy and the digitization of financial transactions.
The introduction of this service also reflects a growing trend among fintech companies to diversify their offerings beyond traditional ride-hailing or delivery services. By integrating financial services into their platforms, these companies aim to create comprehensive ecosystems that cater to various aspects of a user’s daily life, from transportation to financial management.
