Euronet (NASDAQ: EEFT), a leading global financial technology solutions and payments provider, and Fintech Galaxy, a leader in open banking and financial innovation, recently announced a partnership focused on boosting open banking-based payment processes.
Industry sources added that this partnership comprises whole payment processing capabilities and open banking services powered through a new Banking as a Service (BaaS) offering for banks, fintechs, and merchants in the Middle Eastern and African regions. The offering enables faster, more secure, and cost-effective account-based transactions and services such as Card as a Service, payment initiation, consent management, real-time payment processing, tokenization, gateways, wallets, acquiring channels management, and fraud detection and prevention services.
Mohamed Mousa, Vice President, of Euronet Middle East stated “Our partnership with Fintech Galaxy represents a strategic alignment with our mission to bring Banking as a Service, state-of-the-art payments, and fraud detection solutions to our customers in the Middle East and Africa. We are set to transform the region’s payment ecosystem, enhancing our processing capabilities and account-based payments for merchants and end users along with the benefits of real-time fraud detection.”
Mirna Sleiman, Founder and CEO of Fintech Galaxy stated “Together, Euronet and Fintech Galaxy will build an integrated digital payment ecosystem by advancing solutions that offer secure, seamless payment experiences. We will also leverage open banking data to enhance payment processing and reduce risks.”
According to Industry sources, the partnership between Euronet and Fintech Galaxy has powered all-encompassing payment solutions that support various transaction types, including BaaS, peer-to-peer transfers, bill payments, and e-commerce purchases.
Integrating directly with consumers’ bank accounts ensures lower transaction costs and enhanced user convenience. This encourages financial participation and inclusion and potentially can lead to increased adoption rates of digital transactions, which are currently growing at an annual rate of over 20% in the region.
Boosting Fraud Detection and Prevention
Euronet’s advanced fraud detection system, integrated with Fintech Galaxy’s open banking solutions, displays a huge advancement in combating financial crime. The system utilizes a dual-layer approach:
- The first layer comprises a rules-based module tailored for mid-size markets.
- The second offers a strategic component designed for high-volume transactions.
This sophisticated model benefits from the rich built-in transactional data available through open banking, enabling real-time analysis and early detection of potential fraud.
This partnership focuses on boosting financial inclusivity, triggering transaction processes, reducing operational costs for businesses across various sectors, and transforming the landscape of payments and financial services across the Middle East and Africa.
