25-04-2025
Bahrain's Arab Financial Services wants to put its stamp on UAE's payments processing market
Dubai: UAE consumers and businesses have any number of ways to make their payments – digital wallets, credit/debit/pre-paid cards, and, when needed, some cash too.
But these days, it's not just the sheer number of payments options that are available, the choices even extends to payment processing platforms too. The UAE has Magnati and Network International alongside the global names Visa and Mastercard. There are others too – and it is into this fray that Bahrain's Arab Financial Services logged in earlier this year.
It followed the granting of a 'retail Payment Services License – Category 2 from the UAE Central Bank. And which meant AFS could provide its set of payment solutions. But in an already crowded UAE payments marketplace, how can AFS build up a spot?
That's exactly what Samer Soliman, CEO of Arab Financial Services, is intent on doing.
Within the UAE's payments processing space, is there any sub-category AFS will focus on?
We were founded in Bahrain 40 years ago as a traveler's cheques business, then we pivoted into processing. Recently, we got into (merchant) acquiring business, and once we did that, we decided that we needed to be in four key markets across Middle East - Bahrain. Oman, Egypt and UAE. There is a fifth market, but I don't want to get into those details…
But why get into the acquiring space? Was it about higher margins?
We were looking at expanding on the value chain a little bit more. Yes, we realize the penetration in the UAE market is quite high – but we wanted to get into a market with a value proposition for merchants. Even one that's already highly penetrated.
Then you look at the merchants: what do they really need? He needs to get his money settled fast and as AFS, we need to have a ready solution for that. The merchant needs to have a bridge for his funds.
We have partnered with a financial institution to do that for SMEs.
Additionally, he wants to manage all his outlets at his fingertips. Today, someone using a smartphone can access his various bank accounts and transactions at the same time. Why can't the same ease be provided for the acquiring space. When we came in, it was the plan to disrupt the current value system.
Arab Financial Services (AFS) was formed in 1984 to provide payment products, services and expertise to banks and merchant groups and deliver customized payment solutions in an increasingly divergent, disruptive, and dynamic payment eco-system. A key to the growing and continued success of the company was an executive team determined to invest in the most up-to-date, cutting edge technologies. AFS is owned by a total of 37 banks and financial institutions and serves over 60 clients in more than 20 countries across MEA. Today, AFS is the region's leading digital payment solutions provider and Fintech enabler, regulated by the Central Bank of Bahrain. AFS's innovative approach to the provision of financial services is evidenced by a series of pioneering payment services that covers card processing services, merchant acquiring, fintech solutions and an impressive array of value-added services. The emphasis that AFS places on innovation has positioned the company as a driving market force, delivering a rich portfolio of payment solutions including digital mobile wallets, customer orientated Merchant Acquiring services; Bahrain's leading digital payroll solution Al Rateb, global Contact Centers and much more.
But your focus being merchants in the SME space?
One of the benefits – as I said earlier – was to enable merchants to manage all his financials while at the shop. He doesn't need to go to the bank, nor does he have to call in. He can get his things done at his fingertips.
The second would be how to give SMEs a service similar to what's given to large-scale merchants. I've been in the payments business for 30 years – what we going to do is help build the second-generation of payments in the UAE.
And you settle funds to merchants earlier than the market average?
The market is running on what we call 'Transaction plus 1', and we are running the same. But which hour of the 'Plus 1' is what makes us different.
There is always room for players who brings in additional benefits. We already have more than 200 customers on-boarded from incumbents in the market.
