Barclays Eyes UAE For B2B Payments

Two U.K. businesses are partnering to bring a more streamlined service for B2B payments in the United Arab Emirates. In an announcement made Wednesday (May 13), Barclays Bank said it has teamed up with payment technology firm Invapay to launch its “ePayment – Purchase and Pay” solution for UAE businesses.

In an announcement on its website, Invapay said the move is part of efforts to strengthen companies’ positions in the UAE for greater access to cash flow. “Procurement and finance departments have been forced to manage their operations according to established working practices,” Invapay CEO Sid Vasili said in a statement. “What we have done is conducted a review for the entire supply chain end-to-end and developed an innovative solution that helps all parties involved.”

The ePayment – Purchase and Pay solution will provide businesses with access to working capital through a system already in use throughout the U.S., Europe and Asia. According to reports, the tool solves for a common problem within the UAE, which prevents suppliers from accepting card payments. Barclays and Invapay will offer a new payment processing system that pays supplies through Electronic Funds Transfer, and will manage foreign exchange for businesses it uses.

By boosting acceptance rate of payments for business buyers, these companies can benefit from greater rebates and early payment discounts.

Several major banks have recently exited the UAE market, leaving a new hole for businesses to access working capital. Some financial institutions have responded by launching new operations in the nation. In addition to Barclays, Citi recently launched a partnership with Etihad Airways to facilitate cash flow access for Etihad UAE suppliers.

Alternative lenders, however, have also found new footing in the nation. Last March, several top members of the UAE financial community gathered at a panel to discuss the rise of P2P lending to small businesses in the region. Dubai, reports said, is especially supporting of new financing options for businesses, as about 95 percent of the city’s businesses are SMEs.