UAE's Astra Tech teams up with Tencent to introduce remittances to China

It will enable Botim users to make international transfers via the messenger platform to more than 1 billion WeChat customers

The collaboration will empower Botim users without traditional bank accounts to conduct financial transactions with ease. Photo: Astra Tech

Astra Tech, the Dubai-based technology-focused investment firm backed by Abu Dhabi’s G42, has joined hands with the FinTech unit of gaming company Tencent Holdings to unveil cross-border remittances between UAE users of the Middle East internet calling platform Botim and messaging and payment app Weixin/WeChat in China.

This will enable Botim users to make international transfers via the messenger platform to more than 1 billion Weixin users, Astra Tech said on Tuesday.

“Our partnership with Tencent Financial Technology is a testament to the boundless potential of technology,” Abdallah Abu Sheikh, co-founder of Astra Tech and chief executive of Botim, said.

Astra Tech acquired Botim earlier this year as it prepared to launch an “ultra app” to serve a wide range of consumer needs.

The acquisition offered Astra Tech access to Botim’s 90 million registered users – 25 million of which are active.

The deal came after Astra Tech started a $500 million funding round led by G42.

Astra Tech planned to launch an ultra app to rival super apps such as Dubai-based Careem, which is one of the most recognisable super apps in the Middle East.

Meanwhile, the US continued to be the largest source of remittances in 2023, the latest World Bank report said.

The top five remittance recipient countries in 2023 are India at $125 billion, followed by Mexico at $67 billion, China at $50 billion, the Philippines at $40 billion and Egypt at $24 billion.

As part of the partnership, recipients in China can receive funds through Weixin messages, monitor remittance status and choose to receive funds using Weixin Wallet Balance or bank cards linked to Weixin Pay, Astra Tech said.

The partnership with Botim aims “to enhance the global cross-border remittance experience, which is to make sending remittance as easy as sending a message”, said Royal Chen, vice president of Tencent Financial Technology.

This collaboration “simplifies international remittances, eliminates app-switching inconveniences and reduces friction”, Astra Tech said.

In regions where traditional banking services face limitations, this partnership paves the way for financial inclusion, it added.

The collaboration empowers Botim users without traditional bank accounts to conduct financial transactions with ease, it said.

In 2022, Astra Tech also acquired FinTech platform PayBy and UAE-based home services app Rizek.

Botim, which was developed by US company Algento, was introduced in the UAE in 2017 as one of only two licensed voice over internet protocol (VoIP) apps, the other one being C'Me.

Aside from VoIP calls, Botim also offers money transfer and bills payment services.