Dubai’s Careem enters payments space with prepaid credit transfer service

Transferred prepaid-credit can only be used to pay for Careem rides and cannot be redeemed for cash

Dubai-based ride sharing app Careem has introduced prepaid credit transfer service for users in all its markets.

The P2P feature will allow users to transfer Careem prepaid credit through their wallet on the app to other Careem users, including family members and friends that may need credit for a Careem ride.

Transferred prepaid-credit can only be used to pay for Careem rides and cannot be redeemed for cash.

The feature is similar to mobile prepaid airtime credit-transfer products that have been offered to users by telecom operators.

Ali Sattar, head of CareemPay said: “With only one in six people in our region having access to a bank account, Careem has a key role to play in addressing this gap.

“From the early days of operation we have realised the opportunity to offer digital payments including P2P to our customers. With Careem Wallet now the most downloaded wallet of its kind in the region and with one-in-three rides currently being paid for via the wallet, customers are already highly-engaged and ready for more ways to use this core feature.

“P2P marks our first step in offering a broad set of payment solutions and is a key enabler to realising our ambition to becoming the leading, regional internet platform.”

Established in July 2012, Careem operates in more than 120 cities across 15 countries.

It is currently expanding services across its platform to include payments, delivery and mass transportation.

Earlier this month, Reuters reported that the company was looking to raise between $100m and $200m from Chinese investors.

In October, Careem said it had secured $200m in a new funding round from existing investors, and that it expected to raise more to finance expansion plans.

Read more: Dubai app Careem looks to raise up to $200m in China