Direct Debit System acquires UK-regulated ElseWare in East-to-West technology transfer

UAE’s first paperless direct debit marketplace initiates ambitious expansion plans

Direct Debit System, the UAE’s first paperless direct debit marketplace, has launched the first phase of its ambitious overseas expansion plans with the acquisition of UK-regulated company, ElseWare Ltd. The move counters the traditional trend of technology transfer from West to East, as the home-grown UAE fintech firm expands its product range into an established international marketplace.

ElseWare Ltd has been a software provider in the UK’s BACS marketplace for almost 30 years. Through its core product, Front2BAX, customers can make and collect paperless direct debits and autogenerate payments if required. Direct Debit System’s acquisition of ElseWare is a strategic move on the back of the introduction of the UAE’s instant payment platform, Aani, to diversify into territories that have similar regulated instant payment solutions. 

Speaking about the acquisition, Elaine Jones, Chairman of Direct Debit System, said, “This is a timely move as central banks around the world transition to the adoption of ISO 20022 messaging standards, which establish a common platform for sending payments and exchanging data. As a recent start-up in this domain, these standards are native to us, and it is logical to expand into territories like the UK, with an existing regulated business, providing an efficient route to implement our technology and avoid the lengthy approvals that slows advancement in other regions. We are delighted by this acquisition so early in our business expansion phase and look forward to seeing the impact it will have upon the market.” 

Direct Debit System was launched in the UAE in 2022 with the aim of eliminating the cumbersome process of using multiple cheques to settle rent, school fees, and other regular monthly or quarterly payments. It received the official go ahead from the UAE Central Bank in March 2023, and just 20 months later, it is making its first international acquisition.

Speaking about the milestone, Direct Debit System Founder and CEO, Ummair Butt, said, “We are proud of the progress we have made and how we are reversing the path of technology transfer now from East to West. Our next target markets are KSA and Pakistan, which are closer to home and urgently need the robust pull-based payment mechanism that we can provide in these territories.” 

 With 30 years’ experience in Global Banking, Chair of ElseWare, Russell Saunders, believes that the acquisition comes at an important time for the UK market, following the recent publication of the Government’s National Payment Vision. He remarked, “The vision that was unveiled by the Chancellor on 14th November promotes innovation and competition in UK payments. Customers will benefit from enhanced open banking, growth in ‘account-to-account’ transactions, and the modernisation of domestic payments with the adoption of ISO 20022, and the development of globally interoperable instant payments service replacing faster payments. Security will be central to these advancements.”

 Saunders concluded, “As Chair of Direct Debit Services Ltd., the UK arm of the UAE’s Direct Debits System FZ LLC, I am proud to lead our mission to modernise direct debits with ISO 20022 services including Request to Pay, enhanced fraud protection, and Variable Recurring Payments. Our journey begins with acquiring ElseWare Ltd., whose customers will be the first to benefit as we transition to the new technology.”

The rebranded ElseWare website is launching at www.elseware.uk to reflect the recent acquisition.