Nuvei secures Retail Services Category II License from the Central Bank of the UAE

Rhea-AI Summary

Nuvei (Nasdaq: NVEI, TSX: NVEI) announced it has received in-principle approval for a Retail Services Category II License from the Central Bank of the UAE. This license enables Nuvei to expand its operations in the UAE, a key market in the MENA region, by offering direct local acquiring, payment aggregation, and domestic and cross-border fund transfers. The UAE’s eCommerce sector, projected to grow at a 9% CAGR reaching over $10 billion by 2029, presents significant opportunities for Nuvei’s comprehensive payments technology. This expansion complements Nuvei’s strategic goals, following its recent acquisitions of a Major Payment Institution license in Singapore and being the first global payments firm to offer local direct acquiring in Colombia.

Positive

• Nuvei received in-principle approval for a Retail Services Category II License from the Central Bank of the UAE.
• The license allows Nuvei to offer direct local acquiring, payment aggregation, and domestic and cross-border fund transfers.
• The UAE's eCommerce sector is projected to grow at a 9% CAGR, reaching over $10 billion by 2029.
• Nuvei's expansion strengthens its presence in the MENA region and supports local and international customer growth.
• Recent strategic expansions include a Major Payment Institution license in Singapore and local direct acquiring in Colombia.

Negative

• None.

Insights

Financial Analyst

Nuvei's recent license approval from the Central Bank of the UAE signifies a strategic move towards capturing a larger market share in the thriving MENA region. This expansion is particularly significant due to the rapid growth of the UAE's eCommerce sector, projected to exceed $10 billion in revenue by 2029 with a 9% annual growth rate. The ability to offer direct local acquiring and other payment services can potentially lead to higher payment acceptance rates and lower processing costs, enhancing profitability.

Investors should note the competitive edge this provides Nuvei compared to other fintech firms without similar licenses in the region. This strategic foothold could translate to increased revenue streams and market presence, positively impacting Nuvei's financial performance. Additionally, the recurring theme of expanding global licenses, including recent approvals in Singapore and Colombia, underscores Nuvei's dedication to broadening its market reach. This can lead to diversified revenue channels and reduced dependence on any single market.

Market Research Analyst

From a market perspective, Nuvei's entry into the UAE is a calculated response to the region's burgeoning digital economy. The MENA region has shown remarkable growth in digital transactions, with governments and businesses increasingly adopting fintech solutions. Nuvei's direct local acquiring capability is particularly relevant as it addresses the specific needs of local businesses, potentially increasing Nuvei's clientele and loyalty in the region.

Furthermore, the UAE's strategic location as a trade and business hub means that Nuvei’s enhanced payment solutions can facilitate cross-border transactions, which are important for businesses operating in multiple markets. This positions Nuvei well to leverage the region's economic dynamics and accelerates its growth trajectory in a burgeoning market segment.

Extends Nuvei's local acquiring footprint into MENA and reaffirms overall commitment to the thriving region

MONTREAL, June 25, 2024 /PRNewswire/ -- Nuvei Corporation ("Nuvei" or the "Company") (Nasdaq: NVEI) (TSX: NVEI), the Canadian fintech company, today announced that it has secured an in-principle approval for a Retail Services Category II License from the Central Bank of the UAE, representing an important strategic expansion into the United Arab Emirates (UAE) and fortifying its global presence and commitment to the Middle East and North Africa (MENA) region.

The UAE is a crucial market for Nuvei's global customers due to its rapidly growing eCommerce sector, which is projected to surpass $10 billion in revenue by 2029 with an annual growth rate (CAGR 2024-2029) of approximately 9%¹. 

The Retail Services Category II License enables Nuvei to offer its comprehensive suite of payments technology to businesses operating in the thriving UAE market, including direct local acquiring, payment aggregation services, and domestic and cross-border fund transfers. Through direct local acquiring, Nuvei gains greater control over the payment life cycle, ensuring further optimized payment acceptance rates and lower processing costs for its customers.

Nuvei already has a strong commercial presence and existing high-profile partnerships in the region. This expansion across the MENA region reaffirms Nuvei's commitment to supporting its customers' growth both locally and internationally.

Philip Fayer, Nuvei's Chair and CEO, commented on the announcement: "Our mission is to connect our customers to their customers more deeply through payments, wherever those customers are and however they want to pay. Expanding our global licenses portfolio has been a key focus in this regard, and we can now offer the full power of our payment platform to support the growth aspirations of businesses operating in the UAE."

Fayer added: "We extend our gratitude to the Central Bank of the UAE for its in-principle approval of our Retail Payment Services License and facilitating this opportunity. We're thrilled to be on the cusp of launching our best-in-class services, including direct local acquiring, in such a fast-growing digital eCommerce market."

This announcement is the latest from Nuvei as it continues to strengthen its global reach, including extending its local acquiring capabilities in more than 50 countries. In 2024 Nuvei has already announced that it had secured a Major Payment Institution (MPI) license from the Monetary Authority of Singapore, and that it is the first global payments company to offer local direct acquiring in Colombia.

About Nuvei 

Nuvei (Nasdaq: NVEI) (TSX: NVEI) is the Canadian fintech company accelerating the business of clients around the world. Nuvei's modular, flexible and scalable technology allows leading companies to accept next-gen payments, offer all payout options and benefit from card issuing, banking, risk and fraud management services. Connecting businesses to their customers in more than 200 markets, with local acquiring in 50 markets, 150 currencies and 700 alternative payment methods, Nuvei provides the technology and insights for customers and partners to succeed locally and globally with one integration. 

For more information, visit www.nuvei.com

NVEI-IR

Contact: 

Public Relations

alex.hammond@nuvei.com

Investor Relations

IR@nuvei.com

¹ https://www.statista.com/outlook/emo/ecommerce/united-arab-emirates

View original content to download multimedia:https://www.prnewswire.com/news-releases/nuvei-secures-retail-services-category-ii-license-from-the-central-bank-of-the-uae-302180576.html

SOURCE Nuvei

FAQ

What recent license did Nuvei secure in the UAE?

Nuvei secured an in-principle approval for a Retail Services Category II License from the Central Bank of the UAE.

How does Nuvei's new UAE license enhance its services?

The license allows Nuvei to offer direct local acquiring, payment aggregation services, and domestic and cross-border fund transfers in the UAE.

What is the projected growth of the UAE's eCommerce sector?

The UAE's eCommerce sector is projected to grow at approximately 9% CAGR, reaching over $10 billion by 2029.

How does Nuvei’s expansion into the UAE fit into its overall strategy?

The expansion aligns with Nuvei's strategy to strengthen its global reach and support the growth aspirations of businesses in key markets like the UAE.

What are some of Nuvei's recent global expansions?

Nuvei recently secured a Major Payment Institution license from the Monetary Authority of Singapore and became the first global payments company to offer local direct acquiring in Colombia.