Careem has unveiled a new remittance feature via Careem Pay, enabling international money transfers without fees and offering exchange rates superior to market standards, thereby challenging traditional exchange houses in the UAE’s remittance sector.
This initiative follows a 15% increase in fees by conventional exchange houses last year, as reported by the company. The service primarily benefits Careem Plus members, allowing them to save up to AED 400 per transaction when sending funds abroad.
Mohammad El Saadi, Vice President of Careem Pay, stated that the platform already provides exchange rates 50% more affordable than banks. First-time users sending money to India and Pakistan are assured rates better than those listed on Google.
“Careem Plus members can now save up to hundreds of dirhams more on every transaction, depending on how much they’re sending,” El Saadi noted.
The expansion of Careem’s financial services comes as the company reported its international remittance service was among the fastest-growing services over the past year. The platform now facilitates near-instant remittances to India, Pakistan, the Philippines, the UK, Lebanon, and all countries in the European Union.
Speed appears to be a key differentiator for the service, according to the VP. “The vast majority of our remittances arrive within 30 minutes, with some transfers going through in as little as 11 seconds,” El Saadi explained.
This development poses a significant challenge to traditional remittance providers in the UAE, where expatriates constitute approximately 89% of the population and frequently send money to their home countries. By eliminating fees for Plus members and offering competitive exchange rates, Careem aims to capture a larger share of the UAE’s remittance market, which saw outward personal remittances reach hundreds of billions of dirhams last year.
Careem’s zero-fee approach marks a departure from the traditional remittance model in the UAE, where customers typically pay both transfer fees and exchange rate margins. This could pressure established players like Al Ansari Exchange and UAE Exchange to reassess their fee structures to remain competitive.
The service is now available through the Careem app, with the company emphasising its commitment to maintaining competitive rates while expanding its country coverage in the coming months.
