What's Happening?
Mashreq, a prominent financial institution in the MENA region, has announced a partnership with Thunes, a global cross-border payments provider, to facilitate real-time mobile wallet payouts for millions
of customers. This collaboration will utilize Thunes' Direct Global Network to offer instant and cost-effective international transfers across key growth markets in Asia, Africa, and Europe. The initiative is a significant development for the UAE, the world's second-largest remittance hub, with outward flows expected to reach USD $47 billion by 2025. Initially, the service will cover the bank's top 30 payment corridors, with plans to expand to additional countries. The partnership aims to address the increasing demand for mobile wallet connectivity, as global mobile wallet users are projected to exceed five billion in the coming years.
Why It's Important?
This partnership is crucial for advancing digital banking innovation and enhancing financial inclusion. By joining Thunes' network, Mashreq can connect directly to mobile wallets across nearly 45 new destinations, significantly improving the efficiency and transparency of cross-border payments. This move is expected to make global money movement more seamless and inclusive for both individuals and businesses. The collaboration also strengthens Thunes' presence in the Middle East, aligning with its mission to enable more consumers to participate in the global economy through instant, borderless payments. The partnership is poised to redefine international payments, offering a secure and reliable network trusted by leading banks and financial institutions worldwide.
What's Next?
The partnership between Mashreq and Thunes is set to expand beyond the initial 30 corridors, potentially covering more countries as the demand for mobile wallet connectivity grows. This expansion will likely attract more financial institutions to join the network, further enhancing the global reach and impact of the service. As the collaboration progresses, it may also lead to the development of new financial products and services tailored to meet the evolving needs of consumers and businesses in the digital economy.
Beyond the Headlines
The partnership highlights the growing importance of mobile wallets in the global financial ecosystem, particularly in regions with high remittance flows. It underscores the shift towards digital solutions that offer greater accessibility and convenience for users. This development could also prompt regulatory bodies to adapt policies to support the increasing use of mobile wallets and cross-border digital payments, ensuring consumer protection and financial stability.
