Egypt’s Connect Money Set to Expand into Saudi Arabia

RIYADH: Egypt-based fintech startup Connect Money is preparing to make its mark in Saudi Arabia, tapping into the Kingdom’s burgeoning fintech sector as part of its 2025 expansion strategy.

Founded in 2023 by Ayman Essawy, Marwan Kenawy, and Momtaz Moussa, Connect Money specializes in a white-label card issuing platform. This platform enables businesses to offer debit and credit cards to their customers without the need to build fintech infrastructure or secure regulatory licenses.

In an interview with Arab News, CEO Ayman Essawy confirmed that Connect Money aims to enter the Saudi market by mid-2025, with plans to expand further into Morocco afterward.

Saudi Arabia: A Strategic Market

“We see a significant opportunity for expansion, especially in Saudi Arabia, where fintech is growing at an extraordinary pace,” said Essawy. “We’ve established strong connections within the Saudi ecosystem and built relationships with regulators, financial providers, and partner banks.”

Essawy emphasized that the Kingdom represents a key focus for the company, with 80–90% of their efforts concentrated on the Saudi market following the expansion.

Addressing Critical Industry Challenges

Connect Money aims to solve three major pain points for enterprises looking to incorporate fintech solutions:

1. Regulatory Hurdles: Prolonged compliance and licensing cycles can delay fintech adoption.
2. High Infrastructure Costs: Building and maintaining fintech infrastructure requires significant investment.
3. Cashless Transition: Many businesses seek efficient solutions to convert cash transactions into cashless operations, reducing operational costs and improving efficiency.

“Our solution acts as a one-stop shop for embedded finance, handling everything from regulatory approvals to managed services. Essentially, we create a small bank tailored to each client’s needs,” Essawy explained.

A Managed Solution for Businesses

Connect Money’s platform allows companies to retain ownership of their customers, operations, and legal responsibilities while outsourcing the management of financial services. Essawy cited Uber as an example, highlighting how the ride-hailing company could use the solution to issue cards, manage driver accounts, and offer incentives, all under Connect Money’s managed services.

“This approach ensures that businesses maintain full control over their operations while benefiting from a streamlined and fully managed fintech solution,” he added.

Saudi Expansion Plans in Motion

Connect Money is already laying the groundwork for its Saudi operations, including hiring a Saudi-based founding member to lead its local office. The company has seen rapid success in Egypt, securing eight contracts within its first year and boasting a 10-week client onboarding process.

Essawy noted that Saudi Arabia offers a unique market segmentation, with significant opportunities for mid-sized businesses and untapped segments. “We aim to bridge the gap between cash and cashless transactions in the Kingdom, especially within the hyper-growth mid-market sector,” he said.

Advice for Businesses Expanding to Saudi Arabia

Essawy shared his insights on the growing trend of Egyptian companies entering Saudi Arabia. While he recognizes the opportunities, he advises startups to carefully evaluate their margins and growth strategies due to the Kingdom’s high operational costs.

“Saudi Arabia offers immense potential, but it requires a strategic approach. Each business model must align with its scalability goals to succeed in this competitive market,” he added.

A Unique Position in Fintech

As the sole provider of such services in the region, Connect Money anticipates increased competition as the market matures. However, Essawy remains confident in the company’s ability to address market gaps and drive growth across the region.

With its strategic entry into Saudi Arabia, Connect Money is poised to contribute to the Kingdom’s vibrant fintech landscape while solidifying its position as a regional leader in embedded finance solutions. Source : Arabnews

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