Open Finance infrastructure company Spare has announced a strategic partnership with Xsquare, a UAE-based B2B payments company, to integrate direct bank payment capabilities into business workflows. The collaboration leverages the CBUAE’s Open Finance Framework to address longstanding inefficiencies in corporate transactions, such as high fees and settlement delays.
Quick Facts
- Partnership embeds Pay By Bank capabilities directly.
- Targets 2-3% card transaction costs.
- Enables near real-time payment settlement.
- Leverages CBUAE’s Open Finance Framework.
Tackling Inefficient B2B Transactions
Businesses in the region frequently grapple with transaction costs that eat into margins, often paying 2–3% on every card payment. These costs, combined with settlement delays, can significantly disrupt cash flow and complicate operational planning.
Through this partnership, Xsquare clients can now use Spare’s Open Finance infrastructure to streamline core functions like payables, receivables, and cross-border payments. The integration aims to deliver substantial cost reductions and provide near real-time settlement, giving businesses better control over their finances.
A Unified API for Simplified Payments
Spare’s unified API provides a single integration point for platforms to initiate transactions across various use cases. This eliminates the need for businesses to manage fragmented banking relationships and reduces operational complexity as they scale. The result is a more direct payment experience with improved conversion rates, greater accuracy, and enhanced financial visibility.
Dalal AlRayes, Co-founder and CEO of Spare, said: “B2B payments across the region remain heavily fragmented, expensive, and operationally complex. Partnering with Xsquare allows us to bring Open Finance capabilities into real-world business payment workflows, helping companies reduce friction and operate more efficiently across markets”.
Ashwin Shenoy, CPO & Co-Founder of Xsquare, said: “Open Finance is set to fundamentally reshape how businesses transact, and we believe the UAE is uniquely positioned to lead this transformation. Through our partnership with Spare, XSquare is bringing together regulated account-to-account payment rails and a powerful B2B payment orchestration layer. This collaboration strengthens our vision of creating a unified financial operating system for businesses”.
The move highlights the growing role of Open Finance in rebuilding B2B financial infrastructure across MENA, expanding beyond consumer applications to solve entrenched problems in how businesses manage and move money.
About Spare
Spare is a leading Open Finance infrastructure company that enables businesses to access financial data and payment services through a single secure API. Operating across Saudi Arabia, Bahrain, the UAE, and Kuwait, Spare is building the financial connectivity layer powering the next generation of digital financial products across MENA.
About Xsquare
XSquare is a GCC-focused B2B payments platform that runs the entire business financial workflow, e-invoicing, payment collection, supplier payments on corporate cards, and reconciliation, on a single ledger. Running on Mastercard’s B2B program rails, XSquare enables businesses to pay supplier invoices via corporate card while suppliers receive funds directly to their bank accounts, with no change required on the supplier’s side.
Source: Zawya
