Image for illustrative purposes only. — File photo
Direct Debit System, the UAE’s pioneering paperless direct debit marketplace, has initiated the first phase of its global expansion strategy with the acquisition of UK-regulated firm, ElseWare Ltd. This move challenges the conventional pattern of technology flow from West to East, as the UAE-based fintech company broadens its product portfolio into a mature international market. ElseWare Ltd has been a key software provider in the UK’s BACS sector for nearly three decades. Its flagship product, Front2BAX, enables customers to process and collect paperless direct debits and automatically generate payments when necessary.
The acquisition by Direct Debit System is a strategic step following the launch of the UAE’s instant payment platform, Aani, aimed at penetrating markets with similar regulated instant payment solutions. Elaine Jones, Chairman of Direct Debit System, commented, “This acquisition is timely as central banks worldwide adopt ISO 20022 messaging standards, which provide a unified platform for payment transactions and data exchange. As a recent entrant in this field, these standards are integral to our operations, making it logical to expand into regions like the UK, where a regulated business environment exists, facilitating swift implementation of our technology and bypassing lengthy approval processes common in other areas. We are thrilled with this acquisition early in our expansion phase and anticipate its significant market impact.”
Direct Debit System was established in the UAE in 2022 with the goal of simplifying the process of managing multiple cheques for rent, school fees, and other recurring payments. It received approval from the UAE Central Bank in March 2023 and, just 20 months later, made its first international acquisition. Ummair Butt, Founder and CEO of Direct Debit System, reflected on this milestone, stating, “We are proud of our rapid progress and our role in reversing the technology transfer trajectory from East to West. Our immediate focus includes Saudi Arabia and Pakistan, markets closer to home that urgently require the robust pull-based payment solutions we offer.”
With over 30 years of experience in global banking, Russell Saunders, Chair of ElseWare, views the acquisition as pivotal for the UK market, especially following the recent announcement of the Government’s National Payment Vision. He noted, “The vision outlined by the Chancellor on November 14th emphasizes innovation and competition in UK payments. This will enhance open banking, boost ‘account-to-account’ transactions, and modernize domestic payments through ISO 20022 adoption and the development of globally interoperable instant payment services, replacing faster payments. Security will be a core focus of these advancements.” Saunders added, “As Chair of Direct Debit Services Ltd., the UK subsidiary of UAE’s Direct Debits System FZ LLC, I am committed to leading the charge in modernizing direct debits with ISO 20022 services, including Request to Pay, enhanced fraud protection, and Variable Recurring Payments. Our journey starts with acquiring ElseWare Ltd., whose customers will be the first to experience the benefits of this new technology.”
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