First Abu Dhabi Bank (FAB) and Magnati have joined forces in a strategic alliance with Geidea, Saudi Arabia’s largest fintech company, to provide digital payment acceptance services for businesses in the Kingdom.
The collaboration is aiming to bridge the gap between advanced financial solutions and accessibility, while increasing affordability, the companies said in a statement.
FAB is the UAE’s largest bank and has been operating as a licenced full-service bank in the Saudi market since 2019, while Magnati specialisaes in digital payment solutions including Payment as a Platform services.
Speaking on the announcement, Ramana Kumar, CEO of Magnati, said, “Our collaboration with Geidea is a testament to our commitment to serving our clients’ expansion goals in Saudi Arabia. Together, we aim to revolutionise the payment landscape by introducing innovative solutions, seamless integrations, and unparalleled customer experiences.”
Sanjay Sethi, Head of Global Transaction Banking at FAB, added, “This strategic alliance enables us to extend our reach, drive innovation, and provide tailored payment solutions aligned with the evolving needs of businesses across industries. We are not only dedicated to delivering exceptional value to businesses and merchants, but also contributing to Saudi Vision 2030’s aspiration to achieve 70 percent digital payments by 2025.”
In 2021, the Saudi Central Bank confirmed that electronic payments had overtaken cash as the most prevalent payment method in Saudi Arabia. A key player in the market, Geidea became the first non-bank entity in the Kingdom to obtain an acquiring licence from the Saudi Central Bank (SAMA), in the same year.
On the new deal, Abdullah Alshowier, Chief Business Officer at Geidea, said “Geidea is elated to partake in this strategic alliance with First Abu Dhabi Bank and Magnati to support clients in Saudi Arabia. This collaboration will empower merchants with Geidea’s state-of-the-art payment solutions, seamlessly accepting a wide spectrum of digital payments through a unified platform.”
Earlier this month, a GlobalData report provided further evidence of an increasing preference for electronic, contactless payments in the Kingdom in line with the government’s push for a cashless society.
The data and analytics company forecasted the card payments market in KSA to grow by 14.6%, in 2023, to reach SAR532.1 billion ($141.9 billion). This continued the double-digit growth that was registered in both 2021 (29.8%) and 2022 (17.3%) on the back of improving economic conditions and a rise in consumer spending.k
