Why Businesses Can’t Stop Asking for Tips
Employers far beyond restaurants rely on the practice to avoid paying higher wages; testing customer limits
5 min
American businesses have gotten hooked on tipping.
Tip requests have spread far beyond the restaurants and bars that have long relied on them to supplement employee wages. Juice shops, appliance-repair firms and even plant stores are among the service businesses now asking customers to hand over some extra money to their workers.
“The U.S. economy is more tip-reliant than it’s ever been,” said Scheherezade Rehman, an economist and professor of international finance at George Washington University. “But there’s a growing sense that these requests are getting out of control and that corporate America is dumping the responsibility for employee pay onto the customer.”
Some businesses that are new to tipping said they have turned to the practice to try to retain workers in a competitive job market while also keeping their prices low. Asking for tips allows them to increase worker pay without raising their wages.
Consumers seeing tip prompts at every turn say they are overwhelmed—and that worker wages should be business owners’ responsibility, not theirs.
Sixteen percent of the 517 small businesses surveyed by employee-management software company Homebase for The Wall Street Journal ask customers to leave a tip at checkout, up from 6.2% in 2019.
Payroll company Paychex, which provides software for thousands of businesses in leisure, hospitality, retail and other service industries, said more employees are receiving tips as a portion of their pay than at any time since the company started tracking tipping in 2010. As of May, 6.3% of workers whose employers used the software earned tips, compared with 5.6% in 2020. The number remained relatively flat between 2016 and 2020.
As of June, service-sector workers in non-restaurant leisure and hospitality jobs made $1.35 an hour in tips, on average, up 30% from the $1.04 an hour they made in 2019, according to an analysis of 300,000 small and midsize businesses by payroll provider Gusto.
Tips now increase wages for service workers by an average of 25%, compared with 20% between 2019 and 2020, according to Gusto. In May, the average hourly service-industry worker earned $16.64 an hour in base wages and $4.23 an hour in tips.
During pandemic lockdowns, customers of many service businesses began tipping to acknowledge workers who put themselves at risk. Rehman said that made businesses reliant on the practice. Employers with already tight margins say there’s no going back.
“With businesses still preparing for the possibility of a recession, they don’t want to lock into higher wages,” said Jonathan Morduch, a professor of public policy and economics at New York University. “Tipping gives them more flexibility.” He said the practice pushes the financial risk that employers would ordinarily shoulder onto workers.
“Businesses are happy to let workers earn more from tips, especially when there’s no pressure to raise the tipped minimum,” he said, referring to the $2.13 an hour plus tips many bar and restaurant workers across the country earn.
Holding on to workers has been especially difficult in the services sector, particularly since the pandemic. Lodging and food service have had the highest quit rate for workers since July 2021, consistently above 4.9% per three months, the U.S. Chamber of Commerce said in a May 2023 report. The quit rate for the retail trade industry isn’t far behind, around 3.3% so far in 2023. In May 2023, the overall quit rate for workers was 2.6%, according to the Bureau of Labor Statistics.
Dan Moreno, founder of Miami-based Flamingo Appliance Service, decided in 2020 to add an option for customers to tip his employees, reasoning that his home-repair technicians were taking health risks by entering customers’ homes during the pandemic.
About one-third of customers now leave a tip of between 10% and 20%, Moreno said. The requests add an average of $650 a year to his 182 technicians’ salaries, about 1% of their total yearly income.
Rising costs, he said, persuaded him to retain the option after the pandemic abated.
“You wouldn’t believe the margins we operate with,” he said. Competition for workers is fierce. Were he to eliminate the gratuity prompt, he said, he would have to raise prices beyond the 18% he already has, on average, since 2019—likely costing him clients.
He knows the requests might turn off some customers, but as the son of a repair technician and a former technician himself, he said, he tries to do as much as he can for his workers.
Within the food-service industry, tips as a share of compensation are rising faster at limited-service establishments such as bakeries and coffee shops than at full-service ones, according to Gusto.
At the Main Squeeze Juice Co. in Mandeville, La., tips add $3 to $5 to workers’ hourly pay, which starts at $10. Owner Zachary Cheaney said he added the option when he opened the location in 2020.
“We can’t just say, ‘Oh, we’re going to charge $2 extra’ instead of having tips, because we have a duty to our customers to have a very fair price point,” said Cheaney, who also consults for Main Squeeze’s corporate office. If customers think the price is too high, he said, they won’t return. Asking them to tip, he said, is different because it’s optional.
“If customers completely stopped tipping, we would be forced to pay employees more, and it would be hard on us as business operators in this crazy environment of rising costs,” he said.
The juice bar’s general manager, Tiffany Naquin, said tips make up about one-tenth of her $46,000 annual pay. Workers like tips, she said, “in all industries. It’s that little extra.” Knowing a customer will see a gratuity screen at the end motivates employees, she said. “If you give employees incentives, they are going to give you better work,” she said.
Checkouts that include a tip screen are more awkward for customers than for workers, she said. She understands if someone declines to tip, she said, and she wouldn’t let that affect the quality of service.
Morduch, the New York University economics professor, said that while most people tend to think of tips as steady income, many businesses fluctuate seasonally—which means employee pay goes up and down. Service workers who receive tips, he added, are often lower income and struggle to deal with such volatility.
Saru Jayaraman, a labor advocate and director of the Food Labor Research Center at the University of California, Berkeley, said that boosting tips without increasing base pay is bad for workers. If customers stop tipping, she said, worker pay effectively declines, which it wouldn’t if employees got a raise.
“Employers think they’re being smart by using tipping instead of raising wages,” she said. “But really they’re risking losing staff, because it’s pissing consumers off and the employees are the ones who have to deal with it.”
A May survey of about 2,400 Americans by financial services company Bankrate found that consumers are tipping less often than they did at the height of the pandemic. Forty-one percent of respondents said businesses should pay their employees better rather than rely so much on tips. Roughly a third said tipping culture is out of hand.
Denver retiree Mary Medley, though, said she sees being a generous tipper as part of her economic responsibility. For her, it isn’t about how difficult a task was, but whether she can lighten someone else’s financial burden, even a little.
“It’s not my job to figure out where it goes or how it gets distributed,” she said. “But if they’re giving me the opportunity to participate in supporting a business in a tangible way, I’ll do so.”
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Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Available to Citi’s affluent clients in the UAE, the Ultima Credit Card offers exclusive benefits for premium travelers
2 min
Citi and Mastercard have partnered to launch the Citi Ultima Mastercard credit card in the UAE. The card, which is new to market, was introduced to select clients at a Citigold Private Client exclusive Gala Dinner in Dubai.
Building on Citi Wealth’s full suite of offerings, the exclusive all-metal card aims to transform the travel journey, as well as provide enhanced lifestyle experiences for high-net-worth clients in the UAE. The Citi Ultima Mastercard credit card features premium benefits, such as 50% off flight tickets, third hotel night free worldwide, complimentary home check-in, airport transfers, global airport lounge access, airport security fast track as well as airport meet & greet. The card also offers a best-in-class rewards program with up to five Citi Miles earned per USD spent that can be redeemed with one click for flights with any airline in any class to any destination.
Sanjay Nambiar, Citi’s Head of International Cards, said, “With data revealing that the UAE’s affluent clients are travelling more frequently and in greater luxury than before, Citi and Mastercard recognized the demand for elevated, bespoke travel experiences. In response, the Citi Ultima Mastercard credit card was designed to offer exclusive, best-in-class travel and lifestyle benefits that provide more flexibility as well as enhance the experience of our clients in this dynamic market.”
The Citi Ultima Mastercard credit card is part of a strategic agreement between Citi and Mastercard. The agreement facilitates ongoing collaboration aimed at introducing market-leading card propositions and digital experiences to meet the evolving needs and preferences of affluent clients in the UAE.
Jason Lane, Executive Vice President, Global Account Management, Mastercard, said, “We are delighted to expand our long-standing partnership with Citi to bring the Ultima credit card to the UAE, whose increasingly affluent population with rapidly changing requirements demands exceptional lifestyle experiences. As the home to the MENA region’s two wealthiest cities, this is the perfect place to unveil this sophisticated payment product that connects discerning consumers to their passions.”
Venkat Mahadevan, Citi UAE Head of Retail Wealth Business, stated, “We’re always striving to ensure that we bring products and services to our clients that are relevant to their needs and lifestyle. In partnership with Mastercard, the “Ultima” card has been meticulously curated to cater to the needs of the affluent traveler and offers an integrated suite of services that seamlessly combines premium credit card benefits with unique digital features.”
More on the Ultima card proposition:
From bespoke experiences to travel benefits and exclusive service, the Citi Ultima Mastercard credit card offers compelling features, including:
New “Fly with Citi Miles” feature – Cardholders can now earn up to five Citi Miles per USD spent and can redeem them using a new feature, “Fly with Citi Miles”. This enables clients to purchase flights with any airline in any class to any destination and credit the cost back at an exclusive conversion rate with one click. Citi Miles never expire and can also be transferred to 11 partner airlines or converted to cashback.
Ultima Mastercard travel benefits – Exclusive offers have been introduced to elevate cardholders’ travel experience, including 50% off flights (once per year), third night free at any hotel (unlimited), free home check-in (four times per year), airport transfers (four per year), unlimited global airport lounge access (with guest), airport security fast track (three per year) and airport meet & greet.
Additional Ultima Perks – Cardholders will also enjoy lifestyle benefits, such as unlimited golf, valet parking, buy-one-get-one-free on movie tickets, online discounts and more.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
The initiative is spearheaded by Strategic Thinking Bloc spokesman Khalid Bu Onk and supported by four other MPs
2 min
Members of Parliament (MPs) have approved a proposal to allocate BD500 million to the 2025-2026 state budget to improve citizens’ living standards. The initiative, spearheaded by Strategic Thinking Bloc spokesman Khalid Bu Onk and supported by four other MPs, aims to address pressing socioeconomic issues.
“The government’s borrowing has reached BD18 billion, but citizens have not seen tangible improvements in their quality of life,” said Bu Onk. He outlined key objectives for the funds:
- Higher wages and incentives for civil servants.
- Expanded social welfare programs and support initiatives.
- Increased subsidies for electricity and water.
- Employment opportunities for fresh Bahraini graduates in the public sector.
“As legislators, we should seek the best living standards for people. Now, with the government seeking to borrow further, the amount could be directed to improving the living standards of citizens, who are the core of economic stability and growth in the country,” he added.
Traffic Congestion Solutions
MPs also approved two proposals to alleviate traffic congestion caused by heavy vehicles during peak hours in Sitra, Askar, and nearby areas.
The first proposal, led by MP Jalila Al Sayed, chairwoman of Parliament’s services committee, addresses severe bottlenecks in the Sitra area. The second, put forward by MP Lulwa Al Romaihi, focuses on easing congestion on King Hamad Highway, which connects Askar to Durrat Al Bahrain.
Interior Minister General Shaikh Rashid bin Abdulla Al Khalifa, who chairs the Supreme Traffic Council, confirmed that existing measures are already in place:
- Peak-hour restrictions for trucks and heavy vehicles from 6:30 am to 8:00 am and 2:00 pm to 3:00 pm on key roads.
- Increased monitoring by traffic police to enforce compliance.
“The government is committed to evaluating these proposals and will implement further measures, if necessary,” said the minister. He also reassured that public transport and emergency vehicles remain exempt from these restrictions.
A separate proposal to impose stricter penalties for misuse of emergency lanes has been temporarily withdrawn for four weeks. The amendment, led by MP Abdulla Al Romaihi and four others, recommends jail terms of at least six months and fines between BD2,000 and BD6,000.
This move aims to improve road safety and ensure uninterrupted access for emergency services. Initially debated in October last year, the proposal is awaiting further review.
All three approved proposals will now be forwarded to the Cabinet for further consideration.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Interior designer Thomas Hamel on where it goes wrong in so many homes.
Residents are more willing than ever to seek, spend on, and prioritize experiences
3 min
Shamal, a diversified investment firm based in Dubai, has launched a new white paper entitled ‘Understanding the UAE’s Experience Economy’ dissecting the dynamic nature of the experience industry in Dubai and the wider Emirates.
The term ‘experience economy’, coined in the late 1990s by white paper contributor B. Joseph Pine II, refers to an economy in which value is achieved by moving away from the simple production of goods and delivery of service, in Favour of creating and staging experiences designed to generate value. The white paper – based on Shamal’s UAE Experience Survey – was written to offer a comprehensive deep dive into the current experience economy in the UAE, with the aim of driving conversation around its continued evolution.
The research reveals a notable shift in demand from goods to experiences and highlights rising preferences for entertainment, dining and travel, with a trend towards local exploration rather than international adventures. Notably, social media, family, and friends strongly influence experience choices, while the pursuit of authenticity, hyper-personalization, and digital innovation continue to shape the experience landscape.
B. Joseph Pine II, Experience Economy expert, contributed: “Dubai is the experience capital of the world. They got into the experience business to become a place where people want to come and tour and where they want to come and live. It is the creation of new-to-the-world experiences out of whole cloth. That requires a high degree of innovation.”
For those in the UAE, an experience is defined as something memorable, new or never attempted before, although weight is also given to trusted experiences. Eight out of 10 survey respondents said they allocated a specific budget for enjoying experiences at least once each month, and a quarter would happily spend more. When looking for information or inspiration, around two-thirds head for social media or turn to friends or family, with less than a fifth relying on direct communication from a brand.
Understandably, the beach and sea feature strongly in must-haves for short experiences, and family fun is the top choice for a weekend break. Shows and concerts are popular, and bucket list experiences include a yacht trip, skydiving, hot air ballooning and riding in a helicopter.
Thomas Gilovich, Professor of Psychology at Cornell University and Co-director of the Cornell Center for Behavioral Economics and Decision Research contributed: “There’s been more and more research supporting the notion that people get more enduring satisfaction from their experiential purchases than their material purchases. Historically, we have sought out bigger and better things to buy. We now live in a world where there are bigger and better and more exciting experiences to pursue as well.”
In addition to in-depth interviews with thought leaders, the white paper shares insight and opinion on the shift from spending on material purchases to experiences, and why experiential consumption benefits those within the economy from a psychosocial perspective. An analysis of external factors affecting the experience economy, such as population, technology, innovation and strategic diversification, is also offered.
Abdulla Binhabtoor, Chief Executive Officer of Shamal, concluded: “Dubai’s experience economy is witnessing unprecedented growth, as highlighted by the latest statistics from the World Travel & Tourism Council. Our research underscores a common theme: the need to design experiences that create deeper resonance. As social beings, we naturally seek meaningful interactions and connections—experiences provide the platform for these remarkable moments. At Shamal, we are dedicated to cultivating the extraordinary, and we believe that this white paper will inspire transformative opportunities that contribute to a richer, more memorable experience economy for the UAE.”
As the owning company of some of Dubai’s most unique and iconic leisure and entertainment destinations, Shamal continues to invest in extraordinary experiences across all its assets including Kite Beach, Dubai Harbour, Five Guys, Skydive Dubai, XPark, XDubai, and Jumeirah Zabeel Saray.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Following the devastation of recent flooding, experts are urging government intervention to drive the cessation of building in areas at risk.
This agreement reflects the fast growth and dynamic nature of Saudi Arabia’s aviation and logistics sector.
2 min
AJEX Logistics Services, a leading Middle East-based specialist in express distribution and shipping solutions, and Chapman Freeborn, a leading global aircraft charter and aviation support company, have signed a strategic collaboration agreement in Saudi Arabia. This agreement aims to boost aviation and cargo services across the Kingdom, reflecting the fast growth and dynamic nature of Saudi Arabia’s aviation and logistics sector.
The agreement was signed in Riyadh by Mohammed Albayati, CEO of AJEX Logistics Services, and Gerhard Coetzee, Vice President Cargo at Chapman Freeborn IMEA, in the presence of Hassan Abdelnour, Country Manager at Chapman Freeborn Saudi Arabia. Under this alliance, the companies will collaborate to commercialize aircraft charter services for both cargo and passengers, provide comprehensive airport ground and cargo handling, and manage special cargo projects.
Chapman Freeborn, established in 1973, brings a wealth of experience and a strong reputation in aircraft charter services. Their global expertise complements the extensive regional presence of AJEX, creating a collaboration that promises enhanced service offerings and greater operational and commercial capabilities. Both companies will work together to ensure that cargo and passenger needs are addressed with exceptional efficiency and professionalism.
This alliance is timely, given the significant advancements in Saudi Arabia’s logistics and aviation sectors. As part of its Vision 2030 initiative, the Kingdom aims to leverage its strategic location to become a global hub for both passengers and logistics. The Vision 2030 goals include increasing annual passenger numbers to 330 million, expanding connectivity to over 250 destinations from 29 airports, and enhancing air freight capacity to 4.5 million tons per year by 2030.
“As Saudi Arabia continues to strengthen its position in the global logistics sector, we are excited to announce our collaboration with Chapman Freeborn. By combining our regional strengths with Chapman Freeborn’s extensive global network, we are committed to delivering enhanced aviation and cargo solutions that support the Kingdom’s ambitious growth objectives,” said Mohammed Albayati, CEO of AJEX Logistics Services.
Gerhard Coetzee, Vice President Cargo at Chapman Freeborn, added, “We are thrilled to partner with AJEX Logistics Services as we expand our presence in Saudi Arabia. This collaboration aligns with our mission to provide world-class aviation services and reflects our dedication to supporting the Kingdom’s Vision 2030. Together, we will drive innovation and excellence in aviation and cargo operations, ensuring that our clients benefit from the best possible service.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
CXBanking is a platform that will allow the bank to use latest development technologies on the ATM/CDM so that they can move from host driven customer journey to programmable customer journey
2 min
As it strives to give customers a better experience tailored to their needs, in alignment with the 2025 Consumer Banking Digital Transformation Strategy, National Bank of Kuwait (NBK) has announced introducing CXBanking, an ATM client application that extends a traditional client software into a modern, web enterprise environment, on all its ATMs across Kuwait, in collaboration with NCR ATLEOS.
CXBanking is a platform that will allow the bank to use latest development technologies on the ATM/CDM so that they can move from host driven customer journey to programmable customer journey. Therefore, by implementing CXBanking to NBK’s ATM/CDM’s will enhance the customer journey and enable more customer interaction, allowing them to explore the new and enhanced banking features on NBK’s ATMs through state-of-the-art modern technology.
CX banking main provides a wide range of features including cash withdrawal and deposit, transfer locally and internationally, adding and changing e-mail, selecting denomination, making payments using credit cards, and paying with credit card installments.
Other services include card-less cash withdrawal using mobile number or using civil ID, updating civil ID expiry date, extract account statement, view and manage accounts and credit cards.
On top of that, the app offers a customized look and feel based on segment for a unique experience, by having different colors and themes appear when customers access the ATM machine for each segment.
This state-of-the-art technology will reduce load on branches, by introducing new services and revamping the existing features, which will be accessible 24/7 and available at all NBK branches throughout all the governorates of Kuwait.
Commenting on this, Rasha Al-Barjas, ATM and CDM Channels Manager at National Bank of Kuwait, said, “NBK always strives to develop its products and services within its endeavors to offer customers a top-notch banking experience that meets their expectations, saves their time and effort, and enables faster and easier transactions.”
“With the launch of the CXBanking app, NBK ATMs are better able to serve the needs of customers by providing new and enhanced features, which will make these ATMs an alternative preferred channel for many, through which they will be able to make various banking transactions easily, without having to visit branches,” she explained.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
The launch of the new portfolio tools is the latest in a series of product updates for eToro users in recent months.
2 min
Trading and investing platform eToro has unveiled a range of new tools to give users a clearer and more in-depth view of their investment performance while also helping them to make more informed investment decisions.
Designed to help users plan, identify opportunities and benchmark their portfolio against other assets, the new insights provide valuable information on portfolio composition, risk factors and passive income generation.
The updates – available to all eToro users – are as follows:
- Portfolio breakdown: eToro users can see how their portfolio is weighted across asset types, sectors, geographies and exchanges, helping them to understand how diversified they are. They can also receive actionable insights on how they can become more diversified across each metric.
- Risk insights: Users can now gain a deeper understanding of risk, with information on which assets in their portfolio are raising their risk score. They will also be given a view of the assets which least correlate to those in their portfolio, once again to support diversification.
- Expected dividends: Users can see the dividend income they receive from each stock in their portfolio, with detail on how much their portfolio will generate over time, including the expected dividend income from current open positions for the remainder of the year.
- Portfolio comparison: Users can now easily compare their portfolio’s performance to a benchmark such as the S&P 500, making it easier to ascertain how they are performing versus the broader market.
“At eToro, we believe that knowledge is the ultimate power when it comes to investing.” said Or Peled, VP Product Strategy and Growth. “Our new cutting-edge portfolio insights are designed to give our users a strategic edge, offering unparalleled clarity on performance, risk, and diversification opportunities. Whether planning for long-term wealth or fine-tuning their investment strategy, we’re equipping our users with the precision and confidence they need to navigate the complexities of the market and achieve their financial goals.”
The launch of the new portfolio tools is the latest in a series of product updates for eToro users in recent months. In October, the business enabled trading in local currencies for eToro Money GBP and EUR accounts. eToro has also greatly expanded the number of stocks available on the platform through collaborations with Deutsche Boerse, London Stock Exchange and the Dubai Financial Market. Further, stocks listed on the Abu Dhabi Securities Exchange will also be added to the platform in 2025.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
The successful integration aligns with the bank’s commitment to fully complying with QCB’s latest regulatory requirements
< 1 min
AlRayan Bank, in partnership with ProgressSoft, is pleased to announce its successful integration with Qatar Central Bank’s (QCB) new Real-Time Gross Settlement system (QA-RTGS).
The successful integration aligns with the bank’s commitment to fully complying with QCB’s latest regulatory requirements and adopting the latest technologies to deliver faster, more secure, and more reliable banking services for its clients, while fully supporting QCB’s visionary initiatives to strengthen Qatar’s financial ecosystem.
The integration was achieved through the implementation of ProgressSoft’s Payments Hub RTGS Module, facilitating the settlement of high-value interbank transactions in real time, and providing a secure, efficient, and scalable solution capable of managing growing transaction volumes with zero disruption to its banking services.
Mr. Fahad bin Abdullah Al Khalifa, Group CEO of AlRayan Bank stated: “By embracing advanced technologies and aligning with Qatar Central Bank’s innovative initiatives, we continue to enhance the efficiency, security, and reliability of our services. This achievement underscores our commitment to supporting Qatar’s financial ecosystem and empowering our clients with seamless, real-time banking experiences”.
The implementation is fortified with robust security standards, including ISO 20022, to safeguard transactional data and enable secure high-value payment capabilities. It also enhances customer service efficiency and the ability to meet the evolving needs of the market in a reliable and scalable approach.
“We are honored to collaborate with AlRayan Bank on the successful integration with QA-RTGS,” said Amjad Zawyani, ProgressSoft Qatar’s Country Manager. “This achievement highlights our shared commitment to innovation and excellence in advancing Qatar’s financial infrastructure.”
Together, AlRayan Bank and ProgressSoft remain committed to supporting Qatar’s ongoing financial transformation, setting new standards for efficiency, security, and reliability in the banking sector.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
33% of UAE consumers intend to increase their spending on dining experiences v/s 34% of global consumers who plan to reduce.
2 min
The UAE is poised for a significant 13% net increase in consumer spending intentions for 2025, marking the highest growth globally. In contrast, global spending intentions show a net 12% decline, according to the 2025 Global Consumer Outlook published by AlixPartners, the global consulting firm.
The report, based on responses from more than 15,000 consumers across nine countries, highlights anticipated spending increases in the UAE, Saudi Arabia, and China. However, these gains are outweighed by expected spending restraint in the U.S. and Europe, where spending next year is projected to decline further from this year’s already-muted levels, signaling another challenging year for global consumer-facing industries.
The anticipated spending increase among UAE consumers is consistent across all income levels but is particularly pronounced among high-income shoppers. Among generational groups, shoppers under 45 (27%) are expected to lead the surge in spending across retail segments, driven by higher disposable income and the demands of starting and expanding households. In contrast, shoppers aged 45-64 are more likely to maintain their current spending habits (85%) or significantly reduce their expenditure (27%), as many in this age group transition to having financially independent dependents.
“This regional consumer optimism is driven by a more favorable macroeconomic outlook and a reduced perceived need to save,” said Hisham Abdul Khalek, Partner & Managing Director. “This confidence translates into increased anticipated spending across all sectors, particularly in groceries and clothing, driven not only by inflationary pressures but also by premium purchases and a general willingness to spend optimistically.”
AlixPartners’s report, titled Spending Disrupted, identified several key trends across spending categories and income levels, including:
- Grocery registered the highest spending increase (47%), driven by a combination of rising disposable incomes, price inflation, and premiumization among high-income shoppers.
- Clothing (41%) followed as the second-highest segment for increased spending, fueled by growing disposable incomes and the expansion of premium brand offerings.
- Despite rising grocery spending, consumers are seeking savings through better planning and switching to more affordable retailers, relying less on promotions compared to previous years.
- In non-grocery categories, consumers are saving by planning purchases more strategically and avoiding certain categories altogether.
- Dining out remains a polarizing category: while a third of UAE consumers plan to spend more on eating out, globally, 34% intend to spend less, with only 19% planning to increase dining expenditures.
- Entertainment outside the home is gaining traction, with 41% of UAE consumers intending to spend more, followed by 33% in Saudi Arabia and 28% in China.
- If consumers had more money to spend in 2025, priorities of UAE consumers would be travel/ holidays (26%) followed by save and not spend more (20%) and groceries (18%)
“Despite the region’s overall growth narrative, consumption bifurcation remains prevalent. As discount retailers increasingly penetrate the market, some consumers are trading down to more affordable retailers and value brands, particularly in groceries. There are profitability challenges for some companies in the region, coupled with reports of reduced investments and rationalized operations. While this has not yet affected consumer sentiment, it is something that may need to be monitored as the market evolves in the coming year,” Hisham Abdul Khalek concluded.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
PIF acquires 23.08% stake in Saudi Reinsurance Company by way of a capital increase and subscription to new shares
2 min
PIF announced that it has acquired a 23.08% stake in Saudi Reinsurance Company (Saudi Re) by way of a capital increase and subscription to new shares, with the suspension of preemptive rights in accordance with Capital Market Authority regulations.
PIF’s capital investment aims to enhance Saudi Re’s growth potential by adding to its financial capacity and further strengthen its credit rating. PIF’s capital investment also supports Saudi insurance firms by enabling Saudi Re to deliver high quality reinsurance, permitting Saudi insurance companies to manage risk more effectively. Insurers use reinsurance to provide adequate coverage to their policyholders and reduce earnings volatility. Saudi Re enables Saudi insurance firms to grow and innovate.
The investment is expected to contribute to more reinsurance premiums staying within Saudi Arabia while also growing the local reinsurance sector and allowing better coverage for commercial activities for both insurance firms and companies in general, making the economy as a whole more financially resilient. A better capitalized Saudi Re will be more able to meet rapid growth in demand, and devise new products, while having increased capacity to expand in domestic and global markets.
Sultan Alsheikh, Head of Financial Institutions in MENA Investments at PIF, said: “By investing in Saudi Re, PIF is reinforcing a leading regional reinsurer and strengthening Saudi Arabia’s insurance sector, which is an essential component of sustainable economic growth. This enhances access to quality financial services for insurers and their policyholders and strengthens the sector.”
Ahmed Al-Jabr, CEO of Saudi Re, commented: “We are delighted to welcome PIF as a strategic investor and look forward to its role in enabling Saudi Re’s strategy and reinforcing its position as a national reinsurer, while further strengthening its presence regionally and globally. This investment will provide us with multiple benefits, including boosting our financial position and unlocking opportunities for expansion and growth.”
Saudi Re is a leading MENA reinsurance company and holds an A-minus rating from S&P Global and an A3 rating from Moody’s. In the first nine months of 2024, Saudi Re’s total written premiums reached SAR 1.94 billion ($520 million). It achieved a compound annual growth rate of 17% over the five years up to the end of the 2023 financial year.
The transaction secured regulatory consents and was approved by Saudi Re’s shareholders at an extraordinary general meeting.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Expectation of B2B BNPL transaction volume by 2030 is $25-$30 trillion
2 min
Arthur D. Little (ADL) has unveiled its latest report, A Trillion-Dollar Opportunity, which explores the transformative potential of B2B Buy Now, Pay Later (BNPL) solutions in reshaping global trade. With global B2B commerce valued at $120 trillion in latest available data in 2022, the report highlights how businesses are increasingly adopting BNPL to navigate liquidity challenges, enhance supply chain efficiency, and accelerate growth in the digital economy. According to ADL, B2B BNPL is poised to capture 15%-20% of global B2B payments by 2030, unlocking $25-$30 trillion in transaction volume. With an average fee of 3%-4% per transaction, this represents a potential market value of $700 billion to $1.3 trillion.
Closer to home, we are seeing some developments in this space too. Both UAE and KSA have introduced regulatory frameworks for the BNPL sector. Foodics in KSA has launched one of the first examples of B2B BNPL for its food and beverage clients, allowing them to pay for subscriptions and hardware through BNPL. Mala the Saudi fintech announced a $7m investment for its B2B BNPL platform and Comfi in UAE announced that it has secured a $5m debt facility to expedite its B2B BNPL offering.
“B2B BNPL is not just a financial innovation—it is a catalyst for global commerce,” said Arjun Vir Singh, Partner and Global Fintech Lead at Arthur D. Little. “As businesses seek more efficient ways to manage payments and strengthen supply chains, BNPL offers unparalleled flexibility and scalability in today’s dynamic market.”
The report draws attention to the scalability of B2B BNPL solutions by citing Germany as an example. In 2022, B2B online sales in Germany reached $467 billion, accounting for 6.4% of the country’s total B2B commerce volume and representing a market five times larger than Germany’s B2C online market. This example underscores the immense potential of B2B BNPL in well-established markets with significant digital adoption.
The adoption of B2B BNPL is also being driven by the need for improved liquidity solutions among small and medium enterprises (SMEs) worldwide. Currently, 30%-50% of global B2B transactions are facilitated by trade credit, which places credit risk on suppliers and often creates inefficiencies. B2B BNPL offers a streamlined alternative by providing instant credit approvals, reducing administrative burdens, and allowing suppliers to receive immediate payment while buyers benefit from flexible repayment terms.
The report emphasizes that B2B BNPL goes beyond traditional payment methods to address persistent challenges in global trade. Its digital nature simplifies cross-border transactions by standardizing payment terms and reducing complexities in currency exchange and settlement processes. Furthermore, the high double-digit annual growth rate projected for the B2B BNPL market underscores its alignment with the ongoing digital transformation of global commerce.
“B2B BNPL is redefining the future of trade financing,” added Mohammad Nikkar, Principal at Arthur D. Little, Middle East. “With its ability to tackle liquidity challenges, streamline commerce, and support global trade, BNPL is becoming an indispensable tool for businesses navigating today’s fast-changing economy.”
As businesses worldwide continue to embrace digital-first solutions, B2B BNPL is emerging as a cornerstone of embedded finance, enabling companies to enhance cash flow, reduce financial risks, and foster long-term growth.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Bank Nizwa is driving this growth with its innovative Islamic banking solutions
4 min
Under the astute leadership of His Majesty Sultan Haitham Bin Tarik, the Sultanate of Oman has emerged as a beacon of resilience within the GCC. The nation’s dedication to fiscal discipline, economic diversification, and sound financial management has laid a solid foundation for sustained economic growth, exemplified by S&P Global’s upgrade of Oman’s credit rating to investment grade in September 2024. This achievement has strengthened investor confidence, lowered borrowing costs, and opened doors to international capital markets. Additionally, Fitch Ratings revised Oman’s outlook to ‘Positive’ in December 2024, citing successful fiscal reforms and prudent debt management.
Amid this steady economic progress, Oman’s Islamic banking sector has played a pivotal role in shaping the financial landscape. Integrating Sharia principles with the evolving needs of a modern economy, Islamic banking assets in the Sultanate surpassed OMR 8.2 billion by the end of September 2024, accounting for 18.7% of total banking assets, recording an increase of 16.4% compared to the same period last year. Additionally, the total financing granted has grown by 13.8%, reaching approximately OMR 6.7 billion. Furthermore, deposits have increased by 24%, totaling around OMR 6.5 billion by the end of October 2024. This growth reflects a rising trend towards Sharia-compliant solutions. The sector’s financing portfolios and deposits also recorded substantial growth, reflecting the rising preference for Sharia-compliant solutions. As Oman’s first full-fledged Islamic bank, Bank Nizwa has been instrumental in this sector’s evolution.
Commenting on the same, Mr. Khaled Al Kayed, Chief Executive Officer of Bank Nizwa, said, “In the five years since His Majesty Sultan Haitham bin Tariq, may God protect him, ascended to the throne, the Sultanate of Oman has entered a distinguished era of renaissance. This transformative phase has yielded significant advancements across various economic sectors, thereby fostering comprehensive and sustainable development throughout the nation. Under the enlightened leadership of His Majesty, Oman is not only enhancing its economic framework but also establishing a solid foundation for a prosperous and resilient future for all its citizens.”
“Amid this renaissance, the Islamic finance sector in the Sultanate of Oman has witnessed significant growth, establishing itself as a vital contributor to the country’s economic development. At Bank Nizwa, we take pride in our leadership in this sector by aligning our initiatives with Oman’s ambitious goals. Through our Sharia-compliant solutions, we continue our unwavering efforts to enhance economic empowerment and make a positive and meaningful contribution to the social and economic fabric of the nation,” he added.
Bank Nizwa’s financial performance in 2024 reflects its unwavering commitment to excellence, innovation, and customer-centricity. For the third quarter ending September 30, the bank reported a net profit of OMR 12,431 million, representing a 6% increase from the previous year. Total assets rose to OMR 1.770 billion, a 13% growth, while the financing portfolio expanded by 14% to OMR 1.507 billion. Customer deposits surged by 20%, reaching OMR 1.440 billion—a testament to the bank’s strong market positioning and its ability to meet dynamic customer demands.
Complementing its financial achievements, Bank Nizwa has played a transformative role in fostering Islamic financial literacy across the Sultanate. Through workshops, seminars, and digital initiatives, the bank has raised awareness about the benefits of Islamic finance, empowering individuals and businesses to actively participate in Oman’s economic progress. This commitment to education is part of the bank’s larger goal to make ethical financial solutions available to everyone.
A key driver of Bank Nizwa’s impact lies in its tailored financing solutions, which have facilitated milestones in critical sectors. By supporting both SMEs and large-scale ventures, the bank has directly contributed to projects that contribute to Oman’s economic diversification agenda and Oman Vision 2040 goals.
Innovation continues to be central to Bank Nizwa’s strategy, as the bank integrates advanced technologies to enhance service delivery while maintaining the highest standards of Sharia compliance. This forward-looking approach underscores Bank Nizwa’s dedication to blending tradition with modernity, driving greater efficiency and accessibility in financial services.
A pioneer in promoting sustainable finance in Oman, Bank Nizwa has also led the introduction of green financing solutions and championed several sustainability-linked initiatives. These efforts align with Oman’s environmental objectives and demonstrate the bank’s commitment to cultivating a balanced, future-ready economy that prioritizes both prosperity and environmental stewardship.
Bank Nizwa’s continuous innovation has earned it widespread recognition both regionally and internationally, with the bank recently receiving several prestigious awards. Notably, it was honored with the ‘Strongest Islamic Retail Bank in Oman 2024’ at the Islamic Retail Banking Awards (IRBA). This accolade underscores Bank Nizwa’s commitment to delivering innovative banking solutions that adhere to Islamic Sharia principles, while also meeting the evolving needs of its customers and maintaining the highest standards of service excellence.
Bank Nizwa is at the forefront of advancing tools for the Islamic financial industry, extending its leadership beyond the banking sector to also transform endowment institutions. Its efforts are focused on strengthening the endowment sector’s capabilities, aligning with the ambitious goals of Oman Vision 2040. The bank’s record is filled with numerous strategic initiatives in the field of endowment, with one of the most prominent being the launch of the Ishraq Endowment Investment Fund in 2024. This fund was established in partnership between The Ministry of Endowments and Religious Affairs, the Sultan Qaboos Higher Centre for Culture and Science and Bank Nizwa, in cooperation with Oman National Investments Development Company (TANMIA). This ambitious initiative is a significant addition to the endowment sector and marks a major advancement in the development of Islamic financial tools.
As Oman progresses toward becoming a knowledge-driven and innovation-led economy, Bank Nizwa stands as a symbol of purpose and progress. By spearheading advancements in Islamic finance, the bank reinforces its leadership in the sector while driving Oman’s holistic economic development through the promotion of ethical finance that fosters inclusivity, responsibility, and long-term prosperity.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
The program features interactive workshops led by expert entrepreneurs and industry leaders, covering a wide range of essential topics.
3 min
Demonstrating its commitment to Kuwait’s sustainable development and the empowerment of the next generation of entrepreneurs, Boursa Kuwait hosted and sponsored LOYAC’s KONTINUE social entrepreneurship program, which aims to develop the skills of aspiring business owners and entrepreneurs.
KONTINUE is an expert-led program developed in collaboration with Babson College, a U.S. higher learning institution specializing in entrepreneurial leadership, that offers participants an opportunity to acquire essential entrepreneurial skills and build a professional network to contribute to their future success. Launching on Sunday, January 12, and running until February 19, the six-week program provides participants with the practical and theoretical knowledge necessary to develop their project ideas into sustainable and feasible business models.
The program features interactive workshops led by expert entrepreneurs and industry leaders, covering a wide range of essential topics. Participants will learn how to identify customer needs, develop innovative business models, and secure funding for their startups. Dedicated mentors will provide personalized guidance throughout the program, ensuring each participant receives individualized support to maximize their progress and achieve their goals.
Grounded in Babson’s Entrepreneurial Thought & Action® theory and other renowned methodologies, the program aims to guide aspiring business owners in developing business models, identifying user needs, creating value, and differentiating their products and services. It also covers market testing, customer targeting, key metrics for monetizing ideas, securing funding, and handling legal paperwork. Additionally, local entrepreneurs will provide personalized one-on-one mentorship to participants throughout the program.
To participate in the program, aspiring entrepreneurs must submit a project idea and commit to the program schedule, which culminates in a final presentation where each participant or group showcases their business plan and prototype to a panel of expert judges. Winners will be awarded valuable cash prizes, with top honors going to the top three projects.”
Speaking on behalf of Boursa Kuwait, Senior Director of Marketing and Corporate Communication Mr. Naser Meshari Al-Sanousi said, “Boursa Kuwait’s partnership with LOYAC reflects its commitment to empowering youth and fostering innovative educational programs that shape future leaders. Through the KONTINUE program, we aim to support entrepreneurship and sustainable development, aligning with our Corporate Sustainability strategy.”
Al-Sanousi also emphasized that hosting the program on the Boursa Kuwait premises underscores its role as a key catalyst for innovation and entrepreneurship. This initiative reflects a comprehensive vision to support programs that contribute to a brighter future for Kuwait.
He added that this sponsorship aligns with the company’s strategy for corporate social responsibility, which focuses on empowering youth and fostering a thriving entrepreneurial ecosystem and directly supports the United Nations Sustainable Development Goals, particularly Goal 8, promoting decent work and economic growth, and Goal 9, focusing on industry, innovation, and infrastructure.
“Education is a cornerstone of Boursa Kuwait’s corporate sustainability strategy due to its profound impact on achieving sustainable development and economic prosperity. We believe this program will be an ideal platform to stimulate innovation and develop participants’ skills, contributing to the national economy and the sustainable development of the State of Kuwait,” he concluded.
Boursa Kuwait’s sponsorship of the KONTINUE program marks its second collaboration with LOYAC, as part of a strategic partnership aimed at empowering the youth and supporting their aspirations for innovation and entrepreneurship. The partnership underscores both organizations’ commitment to launching initiatives that promote sustainability and social development, with a focus on building youth capacity and developing their skills across various fields. It also exemplifies their dedication to fostering social responsibility and building collaborative bridges to create a positive and long-lasting impact on society.
Chairperson and Managing Director of LOYAC Mrs. Fareah A. Al-Saqqaf thanked Boursa Kuwait for their support of the KONTINUE program, saying: “LOYAC is proud to partner with Boursa Kuwait on the KONTINUE social entrepreneurial program, which demonstrates Boursa Kuwait’s belief in LOYAC’s vision to build the capabilities of young Kuwaitis and empower them to unleash their creativity and innovation skills. By fostering this entrepreneurial spirit, they can become leaders, create job opportunities for themselves and others as well as drive economic growth.”
Founded in 2002, LOYAC is dedicated to empowering young people and nurturing their growth into influential leaders who make a positive impact on society. By providing unique opportunities for leadership development, LOYAC strives to cultivate an enlightened generation committed to peace and prosperity and guided by the values of peace, empowerment, inclusivity, sustainability, and innovation.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Alexandre de Betak and his wife are focusing on their most personal project yet.
S&P Global Ratings expects this positive momentum to continue through 2025.
2 min
UAE banks have benefited from a robust domestic economy, leading to better asset quality and fewer credit losses. According to a report by S&P Global Ratings, this positive momentum is expected to continue through 2025.
S&P projects steady economic growth in the UAE, driven by increasing hydrocarbon production and a thriving non-hydrocarbon sector. The agency highlighted that “As hydrocarbon production picks up, we anticipate that real GDP growth will remain strong in 2025-2027, further supported by buoyant non-hydrocarbon activity. Business-friendly regulations and a low corporate tax regime, a simplified visa regime, and the success of long-term residency visas will continue to fuel new businesses and increase the population in the country. Despite potential vulnerability to sudden increases in regional geopolitical tensions and significant drops in oil prices, we believe that economic risks will remain manageable, supported by demonstrated resiliency during past periods of lower oil prices and heightened geopolitical instability.”
The UAE banking sector is expected to maintain strong lending growth, supported by easing monetary policy and favorable economic conditions. S&P reported: “The lending book will continue expanding as monetary policy eases. Although the UAE could be affected by regional geopolitical tensions and oil price volatility, we believe risks will remain in check. We expect UAE banks to maintain stable and strong capital buffers, robust funding profiles, and continued government support, which will underpin their resilience.”
Asset quality in the UAE banking sector has steadily improved, with non-performing loans (NPLs) and credit losses on the decline. S&P mentioned that “We anticipate UAE banks’ non-performing loans and credit losses will remain low because the solid performance of the non-oil sectors and expected rate cuts will help improve underlying asset quality. Over the past two years, banks used their high profitability to set aside provisions for legacy loans and have written them off, resulting in stage 3 loans for the 10 top banks (accounting for 85% of banking system) dropping to 4% of gross loans as of Sept. 30, 2024, down from the peak of 6.1% in 2021. In addition, the improved economic environment has meant higher recoveries of written-off loans, contributing to lower net credit losses.”
Monetary tightening in recent years expanded banks’ margins through higher interest rates, boosting profitability. However, with declining interest rates, profitability is expected to moderate, though it will remain at high levels compared to historical trends. S&P forecasts low cost of risk, supporting sustained earnings strength even as profits dip slightly from 2023 peaks.
S&P views the UAE’s economic risk outlook positively, citing the strong performance of the non-oil economy as a major factor in the banking sector’s improved asset quality and reduced credit losses. This resilience, coupled with ongoing economic growth, positions UAE banks for continued success in the years ahead.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Sydney’s prestige market is looking up, here’s three of the best on the market right now.
CoinMENA, ATAIX Eurasia and Intebix join the Mastercard Crypto Credential pilot ecosystem, expanding availability in the Middle East and Eastern Europe
3 min
Mastercard has introduced the latest expansion of its innovative Mastercard Crypto Credential solution to the UAE and Kazakhstan, marking its debut in the Eastern Europe, Middle East and Africa (EEMEA) region.
Mastercard Crypto Credential simplifies the consumer experience allowing crypto exchange users to send and receive cryptocurrencies using simple aliases instead of complex blockchain addresses, facilitated through Mastercard’s partnerships with key exchanges and providers in the region. It also helps verify transactions among consumers and businesses using blockchain networks, providing the assurance that a user has met a set of verification standards and confirming that the recipient’s wallet supports the transferred asset. It brings greater trust and certainty to crypto transactions through the exchange of metadata and Travel Rule information.
This latest expansion will enable exchanges such as ATAIX Eurasia, Intebix, and CoinMENA, as well as Fuze, one of the leading Digital Asset Infrastructure providers, to simplify and secure blockchain transactions for users in the region.
“As the cryptocurrency landscape continues to mature, we’ve been laser focused on developing innovative services and capabilities that help make crypto more accessible and secure, streamline the transaction process and enhance trust in the ecosystem. In bringing Mastercard Crypto Credential to the EEMEA region, we’re delivering on our vision to increase and instill trust in blockchain technology while also transforming the way that people interact with digital assets,” said Gaurang Shah, Executive Vice President, Head of Core Payments, EEMEA, Mastercard.
Using Mastercard Crypto Credential is simple. The exchange first verifies the user under the set of Mastercard Crypto Credential standards. At that point, the user obtains an alias to send and receive funds across all supported exchanges. When a user initiates a transfer, the solution confirms that the recipient’s alias is valid, and that the recipient’s wallet supports the digital asset and associated blockchain. If this is not the case, the sender is notified, and the transaction does not proceed, protecting all parties from potential loss of funds.
While the pilot will initially focus on facilitating peer-to-peer transactions, the potential applications of Crypto Credential are expansive, with future capabilities to include NFTs, ticketing, and other innovative payment solutions, depending on market and compliance requirements.
The UAE and Kazakhstan are joining previously activated markets in North America, Europe, Latin America, and Asia Pacific where users can send cross-border and domestic digital asset transfers within and between the regions across multiple blockchains and assets. A select group of crypto wallet users will leverage Mastercard Crypto Credential on a first-come, first-serve basis. Wider availability will roll out across the participating exchanges over the coming months.
“We are committed to fostering innovation in the digital asset space while ensuring a secure, transparent environment for all market participants,” said Yagub Zamanov, FinTech Division Director, Astana Financial Services Authority (AFSA). “By providing clear regulatory frameworks, we aim to build trust and confidence. Collaboration with global partners like Mastercard is key to establishing consistent standards, ensuring the long-term growth and integrity of the sector.”
“Working with Mastercard to develop digital asset solutions is essential to shaping the future of fintech not only in Kazakhstan but around the world,” said Talgat Dossanov, CEO, Intebix. “The introduction of Mastercard Crypto Credential marks a pivotal step in the development of digital finance, providing a trusted framework for the safe and seamless integration of digital assets into the global economy. By providing Intebix clients with Mastercard’s groundbreaking peer-to-peer technology, we are laying the foundation for a more trusted, transparent, and inclusive digital asset ecosystem.”
“As one of the leading cryptocurrency exchanges in Kazakhstan, licensed by the AIFC, ATAIX Eurasia is focused on building a legal and accessible cryptocurrency infrastructure in the Eurasian and, eventually, global financial markets,” said Аrutyun Poghosyan, CEO ATAIX Eurasia. “That is why we are incredibly excited to join Mastercard’s interregional partnership to implement the crucial and timely Mastercard Crypto Credential technology. We look forward to strengthening our collaboration with Mastercard even further.”
“At Fuze, our collaboration with Mastercard on the Crypto Credential initiative underscores our dedication to advancing secure, efficient, and inclusive digital asset transactions across the EEMEA region,” said Mo Ali Yusuf, CEO, Fuze.“This partnership not only strengthens our commitment to supporting banks and fintechs in adopting crypto solutions but also marks a significant step in building trust and enhancing reliability within the evolving crypto landscape.”
“It is exciting to see Mastercard embracing blockchain technology and moving on-chain. Innovations like Mastercard Crypto Credential program are key to building trust and making digital assets more accessible and user-friendly, especially for joiners from traditional finance,” said Talal Tabba, CEO, CoinMENA.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
This license marks an important step in enhancing the company’s position in the growing digital payments market in Saudi Arabia.
2 min
In a move that strengthens the diversification and development of the financial sector in the Kingdom of Saudi Arabia, the Saudi Central Bank (SAMA) has announced the granting of a license to HyperPay Inc. Saudi Arabia for Information Systems Technology to operate digital payment services via an electronic wallet in the Kingdom. This license marks an important step in enhancing the company’s position in the growing digital payments market in Saudi Arabia.
HyperPay is a leading company in the financial technology sector, aiming to support the transition to a less cash-dependent society by offering innovative payment solutions and advanced financial services that meet market needs and future aspirations.
Muhannad Ebwini, Founder and CEO of HyperPay said, said: “We are proud to have received this license from the Saudi Central Bank, which represents a significant milestone in enhancing our leadership in the electronic payment sector. Through this step, we aim to enable businesses to benefit from secure and seamless payment services, in line with the goals of Saudi Arabia’s Vision 2030 to improve the efficiency of the financial system and support digital transformation.”
Ebwini added that this license reflects HyperPay’s ongoing efforts to expand its operations and offer services more widely, contributing to the growth of its customer base and reducing reliance on cash. He also emphasized the company’s commitment to innovation by developing advanced financial services, which supports national economic growth by facilitating payment processes and simplifying business transactions.
This move is part of the Saudi Central Bank’s (SAMA) strategy to support the financial technology sector, as the bank continues to work toward enhancing the effectiveness and flexibility of the financial sector in the Kingdom. It also aims to encourage innovation and improve the experience of financial transactions, aligning with its goals of increasing financial inclusion and providing financial services to various segments of society.
It is worth noting that the electronic payment sector in the Kingdom has witnessed significant growth in recent years, driven by government investments and rapid technological advancements. Through this license, HyperPay reaffirms its commitment to working with the Saudi Central Bank to enhance the infrastructure of modern financial services and support the digital payment ecosystem, contributing to facilitating payment processes and improving user experiences in the Kingdom.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Self-tracking has moved beyond professional athletes and data geeks.
