Pemo Secures Initial Approval for UAE Stored Value Licence

UAE-based spend management platform Pemo has received in-principle approval from the Central Bank of the UAE (CBUAE) for a Stored Value Facilities (SVF) licence, marking a step towards expanding its financial services offering for small and medium-sized businesses.

Once the licensing process is complete, the company will be able to hold and manage business funds digitally on behalf of customers. Pemo said it is among the first spend management platforms in the UAE to receive in-principle approval for an SVF licence and expects to complete the remaining regulatory requirements in the coming months.

Under the Central Bank's Stored Value Facilities framework, licensed companies can enable businesses to load, hold and spend funds digitally without routing every transaction through a traditional bank account. Pemo said this will provide SMEs with faster access to their balances, more flexible corporate card funding and greater day-to-day control over cash through a single platform.

According to the company, SMEs account for around 90% of operating businesses in the UAE and contribute more than 60% of the country's non-oil GDP, yet receive only around 10% of total bank funding. Pemo said its regulated stored value infrastructure is intended to reduce delays businesses face when transferring their own funds.

The company added that the approval lays the groundwork for a broader range of financial products, including digital wallets and new fund-holding capabilities, as it expands from a spend management platform into a more comprehensive financial services provider for UAE SMEs.