Emerging Economies & Digital Micropayments: A Look at Thunes & DT One
In a recent episode of Couchonomics with Arjun, the guest Peter De Caluwe, CEO of Thunes, spoke about how Thunes is enabling cross-border payments from 130 countries. Thunes is a global payments network that connects businesses and financial institutions worldwide, providing seamless cross-border transactions. In this blog post, we will dive deeper into the key takeaways from the podcast episode.
Online Payments in The MENA Region - Overview
The MENA region, which includes Middle Eastern, North African, and Gulf Cooperation Council countries, has reached a critical juncture in terms of online payments overtaking cash. As the region's economy evolves, it presents a promising yet challenging market for fintech. Payment providers in this region must navigate the unique aspects of the payments landscape to provide solutions that meet the needs of businesses and consumers.
While the MENA market has been developing for decades, it has experienced significant acceleration since the beginning of 2020. According to a report by the MENA Fintech Association (MFTA), COVID-19 was a key driver that had a profound impact on market growth. Non-cash payments have increased by 10 to 20% across the region, according to various estimates, in the wake of the pandemic. It is expected that online payments will continue to grow rapidly, and by 2023, non-cash payments in the Middle East are projected to account for 69% of transaction volume, up from 45% in 2018, according to McKinsey's survey.
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Thunes' Vision for Cross-border Payments
Thunes focuses on remittance companies, payroll providers, and the travel industry, but their services extend to anyone who conducts international payments. According to Peter, billions of dollars are sent out of the UAE every year, and Thunes has the potential to address a significant problem, bring efficiencies into the sector, and facilitate cheaper and faster cross-border transactions.
One of the critical issues that Thunes faces is the need to comply with regulations in each country where they operate. To address these challenges, Thunes has developed creative solutions that enable them to operate within regulatory frameworks. For instance, they have built a global compliance network to ensure compliance with local regulations in each region. This compliance network comprises experts in various fields, such as anti-money laundering, sanctions compliance, and regulatory affairs, who work together to ensure that Thunes meets regulatory requirements in each country.
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Empowering Emerging Economies with DT One's Digital Micropayments
Peter is also the CEO of DT One, a company that operates a global network for mobile top-up solutions and innovative mobile rewards. DT One offers a leading global B2B digital micropayments platform that powers transfers of mobile top-ups, data bundles, gaming pins, and gift cards globally. DT One has a network of more than 1,800 mobile operators, mobile wallets, digital apps, and retailers across 160+ countries, building the largest ecosystem for smart digital connectivity solutions. The company reaches over 5 billion mobile consumers across emerging economies, helping to provide greater access to digital communications and enable people to participate more actively in the global economy.
As Peter highlights, the challenges of cross-border payments are complex, but they present enormous opportunities for companies that can provide innovative solutions that meet the needs of businesses and consumers. Thunes and DT One are at the forefront of this rapidly evolving industry, helping to transform the MENA payments landscape and enabling greater access to digital connectivity across emerging economies.
About the Competition and Collaboration
Competition in the business world is always present, but there are ways to navigate it successfully. One approach is through partnerships that focus on infrastructure plays, particularly in the movement of money. This involves companies like Thunes that specialize in the plumbing aspect of banking and ensuring that the pipes work smoothly.
Peter believes that, by increasing the volume of money flowing through the pipes, everyone involved can benefit economically. This can be particularly profitable in areas such as remittance, where the biggest countries are in the Middle East and the US. In addition to remittance, some companies may choose to diversify their offerings by providing small loans to customers in certain countries.
However, entering into these types of businesses can come with challenges such as licensing requirements. Despite these potential obstacles, businesses must remain open to exploring new opportunities and partnerships that will help them stay competitive in the ever-evolving world of finance.
Conclusion
In conclusion, the MENA region's shift towards non-cash payments presents significant opportunities for fintech companies. While the market is challenging, companies like Thunes and DT One are well-positioned to provide innovative solutions that meet the needs of businesses and consumers in the region. By addressing regulatory challenges and leveraging emerging technologies, these companies are helping to transform the payments landscape and drive greater financial inclusion in emerging economies. As the region continues to evolve, we can expect to see continued growth and innovation in the payments sector, with fintech playing a vital role in shaping the future of finance in MENA.
Learn more about open banking and open finance by checking out this exciting episode of Couchonomics with Arjun. Join us as we chat with Peter De Caluwe, CEO of Thunes, about the future of finance. So, if you're interested in staying up to date with the latest trends in fintech and finance, be sure to listen to the latest episode of Couchonomics with Arjun today!