Why Moving Money Between Europe and the Gulf Is Still Hard and How to Make It Safer

Why are cross border payments still so hard for businesses?

There are two sides to it. The first is the customer. The customer is on the safe side, because they potentially use Visa or Mastercard for cross border payments, which is safe, transparent and works 24 hours. The second is the legal entity side. Before a company goes international, it has to analyse the tax position, set up a legal entity abroad and build the cross border flow. That is one of the most important issues in the life of any company that decides to become part of the global economy, and it is still hard to do.

What are customers asking for most right now?

We are an electronic money institution based in London, regulated by the FCA, and as the principal member for Visa and Mastercard we have to be in compliance first of all and implement best practice. We also have to compete for the customer by providing the lowest commission and the best online service, so we have to offer alternative services with low commissions. That is why all eyes are on the open banking market. You do not have to pay the interchange, extra interchange or the forex rate that comes with cards. You operate inside the circle of banks and financial institutions, all regulated by central banks, but there is no extra commission inside the payment. It is great for the customer, because there is no need to overpay.

You are helping build a fintech network linking the UK, the EU and MENA. Why does that bridge matter now?

The most important thing for the Middle East is to be in compliance, especially with sanctions, which is strictly controlled by the central bank. Many companies are now moving from London to Dubai because of the tax regime. The regime in London has changed, and the corporate tax here is far lower. So the business case is there to build a bridge from the United Kingdom to Dubai or Abu Dhabi and to be tax resident here. A lot of businesses are moving, and they are looking for legal support and outsourced financial institutions. They are not looking to commute from London to Dubai. They want to live here with their families and children.

What should a European payments firm understand before it works with the Gulf?

Regulation and culture definitely differ from the European Union, so understanding the culture matters. Secondly, central banks here offer the most possibility and opportunity for crypto companies, with crypto licences and crypto regulation. The European Union implemented its MiCA licence last year, and it is really tough to understand what the final compliance regime is. The policies of the central banks in the Middle East are, in my view, much easier and transparent.

What could Europe learn from the Gulf in payments?

The Gulf tries to be very open to new businesses. A company can register here, apply for a visa and for a licence, and within a couple of months get feedback from the central bank and a bank.

Financial crime prevention is at the centre of a trustworthy payments business. What does that look like day to day, and what is the biggest threat?

The biggest challenge for all of us at the moment is providing services that cannot be hacked by AI, and implementing that immediately. To be fair, nobody yet knows exactly how to do it. A person from somewhere in the world could call your bank's support line and say, with your voice, that it is you, because you are a public person with lots of footage and photos online, and try to take money out of your account. It is so easy.

And identity theft is easier now.