Challenges

In 2019, ADCB identified a huge untapped opportunity that the micro and SME community has faced several challenges leading to more than 50% of all payments in the UAE being still in cash. Key reasons being a) Price sensitivity (high per trans fee), b) High POS cost, c) lack of acquirer focus. Additionally, this segment was highly impacted due to consumer behaviour change due to COVID 19 as people starting moving to digital payment. The need for social distancing further accelerated the need to launch ADCB Pace Pay (virtual POS) in association with Visa and Paysky. Committed to serving the needs of SMEs in the UAE, our virtual POS solution not only helps the small business communities in the country's digital transformation but also provides business intelligence through performance tracking dashboards

Primary target

Which group does your product/service primarily target?

Description of Innovation

1) ADCB PACE PAY can be downloaded to any Android or iOS smartphone, eliminating the need to invest in a separate POS machine or the hassle to carry a separate device 2) Based on a monthly subscription fee, instead of fees levied on a per transaction basis 3) Enables payments to be made in person by card, or remotely via a payments link 4) Contactless payment is enabled through Android, and the Pays (Samsung and Apple Pay) 5) Integrated dashboard enables businesses to track performance in real-time 6) Allows for multi-user access 7) Self-help videos with FAQs embedded in the app. This app converts merchant's smart phone into a payment acceptance terminal

Results

ADCB Pace Pay has crossed a volume of AED 169 Mn with 930 merchants and 189k transactions. 88% of the Micro SME onboarded by ADCB Merchant Services are provided Pace Pay in place of traditional POS. The app is being accepted and consistently used. It has given ADCB the first mover advantage. The app has further enhanced the credibility of ADCB ESG [Environmental, Social, Corporate, (Governance)] initiative and is helping towards other objectives such as Financial inclusion, CASA build up, cross sell opportunity, additional TouchPoint redemption channel, branding, marketing, etc.

Lessons Learnt

Product was launched in Apr'2020 and additional features were added in Jun'21. Regular monitoring is conducted and merchant testimonials are obtained to accordingly action any need for upgrade.

The strong cyber security global infrastructure majorly contributes to make such products a success