Ride hailing app Careem has benefited from the overall lack of credit card penetration in the Middle East by allowing other businesses to leverage its payment capabilities, according to CEO Mudassir Sheikha.
In an interview with CNN, Sheikha said that in the case of Careem, its own data shows that 90 percent of all daily transactions are in cash.
“However, we’ve been able to overcome some of the shortage, or…lack of payment options, and the frustrations that we have had, and are now packaging this up into something that we can offer other businesses,” he said.
‘In the form of a super app that we have built, we allow other businesses in the region to leverage the payment capability that we have built, and [are] able to convert cash, collected by our drivers in the region, into additional payments that can be used for purchases online, on digital platforms,” he added. “That is the first step of what we’re doing with Careem Pay.”
According to the report, only 2 percent of the $1.8 trillion in consumer spending is spent online.
On its website, Careem bills Careem Pay as “an alternative to cash” that “lives in your Careem Pay wallet”.
“You can use your credit to pay for rides, to buy vouchers, or exchange them for points with our loyalty partners,” the website says.
Follow us on
