In a wide-ranging interview, Mark Walker, Editorial Director at The Fintech Times, sat down with Mohammad Elsaadi, VP of Careem Pay, to discuss the evolution of the payments and fintech side of the super app giant’s business.
Careem’s journey began over a decade ago as one of the region’s fastest growing ride-hailing startups. However, as Mohammad Elsaadi, VP of Careem Pay explained, the company’s ambitions extended far beyond transportation: “The purpose is much larger, right? Ride-hailing was where we started. But really the goal is to deliver a business that impacts the lives of people across the region in multitudes of ways.”
This vision led Careem to embrace the super app model, integrating various services like food delivery into a single platform. The COVID-19 pandemic proved to be a pivotal moment, as the company pivoted to focus on these new verticals as the ride-hailing business was severely impacted.
Payments and fintech emerged as a core part of Careem’s super app strategy. Elsaadi detailed the evolution, starting with a closed-loop peer-to-peer transfer system, before expanding into bill payments, mobile recharges and, most recently, the launch of an open-loop wallet in the UAE.
“Towards 2022 is when we actually started to grow a bit more,” Elsaadi said. “Then we launched our open loop wallet in the UAE, which enabled customers to actually even take money out of the ecosystem..”
The remittance business, however, has become the company’s fastest growing and most exciting fintech offering. Careem initially launched a single corridor from the UAE to Pakistan in early 2023, driven by the needs of its large base of captains – the drivers that power the ride-hailing service.
“We knew that they were sending money back home quite regularly. Careem is a important form of sustenance for them to be able to support their families back home. And so that’s where we started,” Elsaadi explained.
Building on this initial success, Careem has rapidly expanded its remittance corridors, launching services to India, the UK and the Philippines over the course of 2023. Elsaadi noted that the average value of transactions has grown significantly, with customers across most corridors sending 2-3 times the national average.
“Today, remittance is definitely the product we are most excited about. And the one which is the fastest growing product,” he said.
Careem’s unique position as a super app with a large existing user base has provided distinct advantages in scaling its fintech offerings. As Walker noted, “Careem has an advantage because it’s not just about money transfer. It’s actually an app people use you every day to get to work or to get their kids to school. So why wouldn’t they keep opening the app?”
Elsaadi agreed, highlighting Careem’s approach to competing as a platform rather than a standalone fintech. “We as Careem compete as a platform, right? So I think this is one of the special things about what we do, while today our FinTech offering consists of remittances, cash outs, peer to peer, payments, bills and recharge. We’re actually the source of income for a decent segment of the population as well, when it comes to captains.”
However, Elsaadi emphasised that the individual products must still deliver exceptional experiences to retain customers. “Even within that, the product needs to work really, well for the customer on the individual, and so that means on remittances, if we are priced 20% above other players, customers are not going to stick around, or if we promise a customer that we’re gonna get their money across in 20 minutes, but then it takes, two days, we’re not going to retain that customer either.”
Careem’s fintech ambitions have positioned the company as a key player in the rapidly evolving payments and remittance landscape of the Middle East. By leveraging its established super app platform and large user base, Careem has been able to rapidly scale its fintech offerings, particularly in the remittance space. As Mohammad Elsaadi noted, the company’s focus on delivering exceptional customer experiences has been crucial to its success, even as it navigates a competitive market with new government-backed initiatives. With plans to continue expanding its remittance corridors and explore the potential of digital currencies, Careem appears well-positioned to cement its role as a leading fintech innovator in the region.
