Open banking platform Tarabut Gateway has been associated with license from Bahrain cryptocurrency exchange rain to allow customers top up your crypto wallets in a faster and cheaper way.
The partnership will allow accounts to be topped up directly from users' bank accounts without ever leaving the Rain platform.
The new feature will use the platform's open banking payment solutions to speed up transactions and reduce errors associated with traditional bank transfers, Tarabut Gateway said on Tuesday.
โWe are delighted to present a solution that aims to make fiat-to-crypto transfers faster, safer and more cost-effective, as well as enable such funding methods directly from bank accounts,โ he said. Abdulla Almoayed, Founder and CEO of Tarabut Gateway.
โOur partnership with Rain is a perfect cross-sector synergy, made possible by Bahrain's advanced open banking ecosystem. Cryptocurrency trading, wallets, and other blockchain use cases are natural allies in opening up traditional banking and finance."
Open banking is a technology that global lenders have embraced to revolutionize the traditional banking model and increase profits while striving to engage retail customers on a personal level and drive new areas of growth.
It allows banks to share customer data, such as transaction history and spending patterns, with regulated third-party providers, with the consent of the account holder.
An open banking platform gives the customer access to accounts from different banks, credit card providers and other financial service companies, allowing them to easily and instantly make transfers between them.
Third-party FinTech platforms, such as the Tarabut Gateway, guide clients towards financial products and services tailored to their specific needs by analyzing their spending habits.
Tarabut Gateway, founded in 2017, is licensed by global regulators such as the Central Bank of Bahrain and the Dubai Financial Services Authority.
The Central Bank of Saudi Arabia also allows you to test its services in the Regulatory Sandbox environment.
The platform, which has partnerships with various banks, financial institutions, and FinTech companies across the region, raised $13 million in a seed capital round in 2021.
The funding round was led by Berlin-based venture capital firm Target Global and was followed by another $12 million in a pre-Series A funding round led by Tiger Global.
The global open banking industry market size is projected to reach $43.15 billion by 2026, with a compound annual growth rate of 24.4%, according to Allied Market Research.
Rain CEO Joseph Dallago said the partnership with Tarabut Gateway would unlock โa new era for crypto asset adoption in the region.โ
โThrough fast and efficient deposit mechanisms, cryptocurrency traders on Rain's platform will now be able to seamlessly fund their accounts and capitalize on market movements,โ he said.
Through its subsidiary, Rain Management, a digital asset broker and custodian licensed by the Central Bank of Bahrain, Rain offers users a space to buy, sell and store cryptocurrency assets.
Rain was founded in 2017 by Abdullah Almoaiqel, AJ Nelson, Joseph Dallago and Yehia Badawy. In 2019, Rain Management became the first licensed cryptocurrency asset service provider in the Middle East.
A 2021 survey by FinTech firm Finastra found that open banking was a "must have" for more than half of financial institutions around the world.
Globally, more than nine in 10 financial institutions said open banking was important to their organization.
The United Arab Emirates leads the way in terms of the importance of open banking, with 68 percent of financial institutions saying it is a "must-have," followed by 58 percent in Hong Kong and 56 percent in Singapore, according to the survey.
Among global financial institutions that have already integrated open banking into their operations, 97 percent said it has provided benefits to their business, such as improving customer service or experience, attracting customers (new and existing) and providing new services, according to the survey.
Updated: March 14, 2023, 6:47 am
