Al Fardan Exchange ties up with neobank Jingle Pay to offer instant remittances

Partnership aims to tap into the pandemic-driven surge in digital transfers

Al Fardan Exchange’s partnership with FinTech platform Jingle Pay will help serve migrant workers who need no-fee accounts and fee-free or low-cost cross-border money transfers, millennial and GeneratShow more

Money transfer company Al Fardan Exchange is partnering with Dubai digital banking start-up Jingle Pay to offer instant remittances.

The companies will share their expertise to serve migrant workers who need no-fee accounts and low or no-cost cross-border money transfers, Al Fardan Exchange said in a statement on Monday.

The alliance will also target customers aged under 40 seeking instant money transfer services, the statement said.

Money exchange providers are increasingly tying up with FinTechs to cater to customers who now rely on the convenience of mobile apps to send money home rather than visit physical branches for fear of contracting the virus.

“Al Fardan Exchange has been looking at expanding in the digital landscape and since the FinTech industry has witnessed unprecedented growth in the past few years, we’ve decided to collaborate with them to disrupt traditional financial services through the deployment of advanced technology and a more optimised approach in serving customers,” Hasan Al Fardan, chief executive of Al Fardan Exchange, said.

“Partnering up with Jingle Pay gives us a mutual opportunity for growth and innovation.”

Outward personal remittances from the UAE dropped by 5 per cent, or Dh8.3 billion ($2.26bn), year-on-year in 2020, according to the Central Bank of the UAE’s annual report. Transfers through exchange houses fell by Dh18.1bn or 13.8 per cent, while outward remittances through banks increased by Dh9.8bn or 28.8 per cent, the report said.

Digital remittances account for 10 per cent of Al Fardan Exchange’s total business volumes, while retail transactions make up the remaining 90 per cent, Mr Al Fardan said.

The UAE was the second-biggest market for outbound migrant remittances after the US in 2020, according to a study by Oxford Business Group and Al Fardan Exchange. In 2020, remittances by foreign workers in the UAE totalled $43bn.

“The partnership bolsters our global reach and processing capabilities, helping us empower our users through financial services in new ways,” Amir Fardghassemi, founder of Jingle Pay, said.

Dubai-based Jingle Pay is a fee-free social payment application where customers can open an account with no minimum balance required. The app, which primarily targets underserved millennial and Gen Z customers, also features a multi-currency wallet that provides remittance services, peer-to-peer payments, nanofinancing and payment processing services, according to the company’s website.

The partnership with Al Fardan Exchange will allow Jingle Pay users to remit money through the app to bank accounts, mobile wallets, cash pick-up kiosks and cards in more than 140 countries, with low fees and preferential foreign exchange rates, the statement said.

Jingle App users can consolidate their financial information from multiple bank accounts and cards for better control of their money. The app can also be used to pay and split bills with friends.

Meanwhile, Al Fardan Exchange has tied up with contactless mobile payment app Empay, a move that will allow customers to pay for government and private-sector services including licence renewals, bill payments, food orders, school fees, international remittances and peer-to peer micropayments.

Empay customers will also be able to use Al Fardan Exchange to immediately transfer money to a bank account or as instant cash, Empay said in a statement on Monday.