Mahboob bin Mohammed Al-Abdulrahman

TBY talks to Mahboob bin Mohammed Al-Abdulrahman, Founder & CEO of ePaid, about the state of the Saudi Arabian economy, expansion, and obstacles facing the business in the short term.

How are you coping with, and capitalizing on, the changes characterizing the national economy?

The focus is on readiness and capability. We are building our capability to deliver on the rapid expectations set by the country and the various Vision 2030 programs. Since the announcement of the new Vision, we have been developing our skills and forming strategic partnerships. It is impossible to achieve this quickly and alone; collaboration is key. We have been forming these alliances over time. Historically, we were an IT service company, but now we have diversified into multiple areas, including payments. We spun off our payment division into a new entity, e-Paid (Paid Financial Company), to focus solely on providing one-stop-shop payment solutions. We obtained a license from the Central Bank and are now marketing directly. Our business, especially in payments, is driven largely by financial institutions like banks. We serve merchants on behalf of banks under specific business contracts. With our alliances, we can now go directly to merchants and offer comprehensive solutions to meet their needs.

Can you elaborate on your strategic partnerships and how they enhance your service offerings?

We have partnered with Saudi Telecom Company (STC) for our go-to-market strategy for payment solutions, specifically POS payemnts . This strategic alliance is already in place. Additionally, we are forming strategic partnerships with local banks and fintech solution providers. We have also partnered with a financing houses to offer financing through POS systems. Our strength lies in having an experienced team with extensive reach across all of Saudi Arabia. Currently, ePaid covers 44 cities. This widespread coverage allows us to serve micro and small businesses, which are often overlooked by larger financial institutions due to their size and remote locations. Since we are already present in these areas, upselling our services is easier. Although we are not a financing house, we can promote financing houses to our clients. As a POS provider, we can facilitate loans through our partners if the businesses meet specific criteria. By providing payment solutions and facilitating on-the-spot loan deductions, we reduce the lender’s risk and get closer to micro-businesses. This approach helps financial institutions see the transaction patterns of these cities and make informed decisions about loan approvals and risk management. ePaid will continue to operate in non-payment business areas, providing services like bank retail printers and devices to activate ATM cards, as well as infrastructure cybersecurity for banks. Meanwhile, e-Paid will focus on payment solutions and services requiring SAMA certification or accreditation.

Regarding your business expansion, what are the main obstacles you anticipate facing in the short term?

The first challenge is financial. Rapid growth requires swift expansion, and sometimes you do not have the luxury of delay. You may have reached your maximum capacity, yet your customers expect immediate delivery. The alignment between financial capability and growth often does not match, holding you back. The solution lies in forming alliances or partnerships. Collaborating with others can elevate you to the next level without straining your finances, relying instead on your combined capabilities. When partnering with entities like STC, local banks, SAFE by PIF, or other well-funded organizations, they may face different problems that we can help solve. Conversely, they provide the financial support we need. This symbiotic relationship is beneficial. Logistics is not an issue for us, but finding talented people in the domain is. If you consider the payment industry or fintech, there are few companies certified by SAMA. The skilled professionals are already employed by these companies, making it challenging to hire from within the industry. Offering better incentives to attract them or developing in-house capabilities takes time. Hiring talent from outside the industry or country poses a different challenge since they lack specific know-how, like understanding the Saudi payment scheme, MADA. Even with technical requirements in place, hands-on work is still necessary. Remote hiring has proven difficult due to miscommunication and misunderstandings. We experienced this when we hired an overseas team; despite being cost-effective, delivery was a significant challenge. Thus, acquiring and retaining talent remains a major obstacle.