Payrails and Careem: Strategic partnership to upgrade payment integration in MENA

By leveraging Payrails’ platform, Careem can route payments along the most strategic paths, driving higher payment conversions and simplifying the checkout experience for its customers

by Marisha Singh

June 20, 2024

Image credit: Careem

Payrails, a global payment operating system for global enterprises, announced a strategic partnership with Careem, the MENA region’s leading multi-service app, on Wednesday. The tie-up will facilitate payments for the latter’s services, including ride-hailing, food and grocery delivery, bill payments, domestic and international transfers, and more, as per the fintech platform’s official statement.

By integrating Payrails’ payment routing solution and making local payment integrations easier to activate, Careem can enter new markets faster through a central provider for integration with new partners, the statement added.

What does the partnership entail?

Payrails provides industry-leading payments solutions to global enterprises operating at scale, removing complexity for merchants by streamlining the integration of payment service providers through one comprehensive platform.

Leveraging this platform, Careem is able to route payments along the most strategic path to drive payment conversions. The system makes payment integrations and switching between local processors and payment methods easier, simplifying the checkout experience for Careem customers across the region.

Mohammad El Saadi, VP of Careem Pay, said, “Careem Pay helps millions of people to manage their payments, run errands, move around, and more, all within one Everything App. Our partnership with Payrails helps us streamline transactions and bring our services to even more customers across the region.”

The Andreessen Horowitz-backed founders have strong connections in the MENA region, having developed the payment acceptance technology for leading enterprises across several industries, including Just Eat Takeaway, Preply, Vinted and Teknasyon.

“We are a global partner with a strong local knowledge of MENA merchants and their payment challenges” said Payrails CEO, Orkhan Abdullayev. “We are excited to join forces with Careem, solving complex payment processes and improving payment performance across all operational markets. Our modular technology integrates seamlessly with any payment use case and enhances Careem’s existing setups, increasing flexibility and scalability.”

The Payrails platform is specifically designed for enterprise clients handling large volumes of transactions giving them access to a full suite of advanced solutions for automation and payment optimisation. This includes a multi-payment service provider (PSP) and multi-payment method integration layer, automatic payment retries, a PSP-agnostic token vault, dynamic customisable checkout pages, native reconciliation and ledgering tools, as well as advanced analytics solutions.

Revolutionising enterprise payments

Payrails is designed for enterprises operating at scale, offering a comprehensive platform that simplifies the integration of various payment service providers (PSPs) and alternative payment methods (APMs).

This platform removes the complexity for merchants by streamlining the entire payment process, from initial integration to ongoing transaction management.

Key features of Payrails’ platform

Multi-PSP and Multi-APM integration layer: Payrails provides a unified integration layer that supports multiple PSPs and APMs, allowing enterprises to manage various payment methods through a single API. This eliminates the need for multiple individual integrations, simplifying the payment process.
Dynamic payment routing: Payrails’ platform enables strategic routing of payments to optimise payment conversions. By dynamically selecting the most efficient payment path, businesses can enhance their transaction approval rates and reduce costs.
Automatic payment retries: The platform includes advanced features such as automatic retries for failed payments, which can significantly improve transaction success rates.
PSP-agnostic token vault: Payrails offers a secure token vault that is independent of any specific PSP, providing flexibility and enhancing security in the storage of payment information.
Customisable checkout pages: Businesses can create dynamic and customisable checkout experiences that align with their brand and enhance the user experience.
Advanced analytics solutions: Payrails provides robust analytics tools that offer insights into payment performance, helping businesses optimise their financial operations.

Impact on Careem’s operations

By leveraging Payrails’ platform, Careem can route payments along the most strategic paths, driving higher payment conversions and simplifying the checkout experience for its customers.

This integration is particularly beneficial as Careem continues to expand its services and enter new markets.

The platform’s capabilities in automating payment processes and providing a seamless user experience align with Careem’s goal of making its multi-service app more accessible and efficient for users across the region.

Previous collaborations

Payrails has a proven track record in enhancing payment solutions for global enterprises.

For instance, in a previous collaboration with inDrive, a prominent ride-hailing app, Payrails implemented a PSP-agnostic integration layer and dynamic payment routing. This solution led to an 11 per cent increase in card approval rates and improved conversion rates within a shorter timeframe, demonstrating Payrails’ ability to drive significant performance improvements.

Market potential

In 2023, Payrails raised EUR13.5m in a seed extension round, led by EQT Ventures, with participation from General Catalyst, Andreessen Horowitz, and HV Capital.

This funding underscores the confidence investors have in Payrails’ approach to payment processing and its potential to transform financial operations for high-growth businesses globally, by creating a product that addresses a gap in the market

The founders, Orkhan Abdullayev, Emre Talay, and Nicolas Thouzeau, have extensive experience in building fintech solutions, having previously developed the payment technology for Delivery Hero, the world’s largest delivery platform.

Read: Careem’s 2023 numbers: From a $20,420 food order to 1.1m burgers