UAE Exchange Group to raise market share

UAE Exchange Group, a global remittance and foreign exchange business, aims to spend between $250-million (R3.35-billion) and $300-million (R4.03-billion) on acquisitions to build its global market share.

The group aims to increase its share of the $575-billion (R7.7-trillion) global remittance industry to more than 10% by 2020, from 6.75% currently, chief executive Promoth Manghat said.

“The group is exploring multiple bolt-on acquisition opportunities as well as strategic investments in remittances and payments space with a specific focus on fintech [and] digital,” Manghat said.

Exchange houses and other traditional payment processors such as banks are facing a challenge from fintech companies, which can increasingly transfer payments at more competitive rates.

Manghat said UAE Exchange was working with unidentified boutique firms and banks to advise it on two to three potential acquisitions this year.

UAE Exchange saw around 8% growth in outflows from the United Arab Emirates in the first quarter of this year, and full year growth is likely to be stronger than last year, Manghat said.