How Telr is facilitating GCC’s shift from cash to digital payments

As Khalil Alami looks back on the online payments market in the Middle East in 2014, he underlines the significant dearth of local players that existed back then. “Everybody was using either PayPal or platforms in Europe or the US (which come) with very high costs and zero customer service,” says Khalil. 

He also highlights that steep prices were being offered by these platforms that were incompatible with the region. “If you were a merchant and wanted to accept online payments in 2014, your costs were super high. You are talking about 6%-8%, sometimes even 10%,” he tells YourStory Gulf Edition.

Sensing an opportunity, Elias Ghanem founded Telrin 2014 as a homegrown online payment gateway to cater to the region’s financial needs. The Dubai-based startup is active in the United Arab Emirates (UAE) and Saudi Arabia (KSA). Khalil joined Telr as founder and CEO in 2019. Elias Ghanem is no longer a part of the startup.

Khalil is an Economics and Management Information Systems graduate from Purdue University, Krannert School of Management. He has also studied MBA at the American University in Beirut and has been working in the payments industry since his graduation in 1999. 

What does Telr do?

Telr offers payment gateway solutions for small and medium enterprises (SMEs), government bodies, startups, and corporates. It enables merchants to transact and accept payments from customers in over 120 currencies with different capabilities and in 30 different languages.

Khalil explains, “We have developed a wholly-owned, customisable platform that enables us to handle complex payment methods or integrations.” 

Telr is also certified with Payment Card Industry Data Security Standard (PCI DSS) level one accreditation, bolstering client data security with anti-fraud protection and real-time monitoring. 

Explaining the pricing model, Khalil states it includes all features, including anti-fraud, buy now pay later, and QR codes. “You can start with a startup package where you pay AED 349/month, and you get all of our services,” he says.

The company has three pricing plans—entry, small, and medium, which depend on the transaction volume.

“As you progress from being a startup to something larger, our pricing structure automatically changes and you have full visibility. The pricing structure is dynamic and changes based on where you stand,” he adds. 

In addition, the 65-member team has complete control over the platform, which lends them the ability to customise using their wholly proprietary technology. 

Khalil explains, “That is the unique selling point where we are not just talking about customisation (in general), but also customisation to each and every merchant on every level.”

While the company didn’t disclose the number of transactions processed or any business financials, according to Forbes Middle East, it processes 500,000 transactions a month.

Digital payments in the region

According to a report by Mordor Intelligence, the United Arab Emirates payment market is expected to grow at a CAGR of 13.67% over the forecast period of 2022-2027. Another report by Morder Intelligence stated that the Saudi Arabia payments market is expected to grow at a CAGR of 15.4% over the same period.

The Mordor Intelligence report stated that although customers in the UAE are dependent on cash payments, card and internet-related payments are on the rise. 

One of the reasons behind the push is government financial inclusion programmes, the adoption of Europay, MasterCard, and Visa (EMV), promotional campaigns by financial institutions, and contactless technology, the report added. 

In the GCC, Telr competes with the likes of PayTabs, CCAvenue, Checkout, CashU, Cybersource, Hyperpay, and Stripe, to name a few.

Khalil states, “In both UAE and Saudi Arabia, where you have a large population that is very young, with a low median age, mobile and internet penetration is super high.”

The COVID-19 pandemic led to the launch of different mobile wallets that accelerated online payments and financial literacy. 

“For example, Vision 2030 aims 70% of all payments to be digital for Saudi Arabia and that is very beneficial for the ecosystem and for players in the ecosystem like Telr,” he adds. 

Starting up in the Middle East

Founding a company in the GCC region gives a vantage point over Arab consumers.

“You can establish a company in two days or one day or the same day, at low costs, and you have access to all of that. At the same time, you have the tax-free mentality in the GCC,” Khalil says.

He explains that the regulators in the countries that Telr operates in are "dynamic, sophisticated and collaborative".

He says, “When they introduce new regulations, they reach out to the ecosystem and ask for input before issuing the final regulations. We have actually requested certain changes in the regulations to be more dynamic and to be more in line with worldwide standards. We've seen those comments and changes take effect into the regulations that were finalised at the end.”

“The UAE is a hub and a meeting point for everybody in the region. It is well situated geographically, ecosystem-wise, market-wise, and accessibility-wise. This is why I would really recommend anybody to establish their companies, whether it is in the UAE or KSA,” he adds.

Future plans

Telr completed a late Series B funding round of an undisclosed amount in January 2022. The company has earmarked those funds towards growth in the UAE and KSA.

According to Forbes Middle East, the total capital raised by the startup is $29 million from investors, including iMena, Cashfree Payments, and Tila.

Khaldoon Tabaza, Founder and Managing Director, iMENA Group, says, “We view Telr as a platform that can leverage its merchants base, its brand, and its relationship with financial institutions to launch value-added products and services that go beyond payments and that allows it to differentiate itself against the competition”

At present, the team is primarily focusing on its home markets. 

Revealing additional plans, Khalil says, “We plan to grow our payment method acceptance to cover the rest of the GCC. If you are a customer, merchant, or partner with us, you will not only be able to accept the local payment methods of the UAE and Saudi Arabia, but we will open up the rest of the GCC for you.”

(This story was updated with additional inputs.)