Careem has launched a new remittance feature through Careem Pay that offers zero-fee international transfers and better-than-market exchange rates, challenging traditional exchange houses in the UAE’s remittance market.
The move comes as conventional exchange houses increased their fees by 15 per cent last year, according to the company. The new service, which primarily benefits Careem Plus members, enables customers to save up to AED 400 per transaction when sending money abroad.
Mohammad El Saadi, Vice President of Careem Pay, told Arabian Business in an exclusive interview that the platform already offers exchange rates 50 per cent cheaper than banks, with first-time users sending money to India and Pakistan guaranteed rates better than the Google exchange rate.
“Careem Plus members can now save up to hundreds of dirhams more on every transaction, depending on how much they’re sending,” El Saadi said.
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.
The move represents a significant challenge to traditional remittance providers in the UAE, where expatriates make up approximately 89 per cent of the population and regularly send money to their home countries. By eliminating fees for Plus members and offering competitive exchange rates, Careem is positioning itself 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.
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