UAE-based B2B payments firm Xsquare has partnered with Open Finance infrastructure provider Spare to implement Pay by Bank software, marking a significant move in the Middle East’s digital payments landscape. The collaboration will leverage the Central Bank of UAE’s Open Finance Framework to enhance payment capabilities for businesses operating in the region.
The partnership positions Xsquare to offer direct bank-to-bank payment solutions to its corporate clients, eliminating traditional payment intermediaries and reducing transaction costs. Spare’s infrastructure will enable Xsquare to optimize payment strategies across its business customer base, tapping into the growing demand for instant, account-to-account payment methods in the UAE market.
This deal reflects accelerating adoption of open banking technologies in Gulf states, where regulatory frameworks are increasingly supportive of financial data sharing and alternative payment rails. The move could pressure traditional payment processors and card networks operating in the region as businesses seek lower-cost settlement options.
FXnCO Insight
Payment service providers and card networks with UAE exposure should monitor whether this partnership triggers wider corporate migration toward direct bank payment solutions, potentially impacting interchange revenue streams.
Source: Finextra