Aafaq Islamic Finance has selected digital commerce enabler Network International to provide end-to-end card processing solutions as part of its digital-first strategy.
Network International will strengthen Aafaq’s Shariah compliant system and unlock new revenue generation opportunities through value-added services such as easy payment plans, cardholder self-service and control applications as well as loyalty services. It will also provide Aafaq with virtual cards, tokenization and fraud prevention solutions.
Aafaq’s decision to enhance its cashless capabilities comes as almost two-thirds of the UAE population expect the country to become fully cashless by 2020, according to a 2020 poll by Standard Chartered. The UAE is increasingly becoming cashless: according to the FIS Global Payments Report 2024, credit card transactions commanded 41% of e-commerce transaction values in the Emirates and debit cards accounted for 11% last year. Digital wallets were the second-most popular online payment method at 24%, while only 7% of total transactions were paid using cash on delivery.
Founded in 2006, Aafaq provides both retail and corporate Islamic finance solutions. It has been channeling resources toward bolstering its digital capabilities. In March, the company partnered with Electronic Documents Centre to implement a digital onboarding solution.