Spend management platform Pemo has received in-principle approval for a Stored Value Facility (SVF) license from the Central Bank of the UAE (CBUAE).
The approval will allow the company to hold and manage business funds digitally once the full licensing process is completed.
Pemo expects to secure the final license in the coming months.
The license, once granted, will allow the company to introduce a broader suite of financial products, including digital wallets and dedicated fund-holding capabilities tailored for SMEs.
Enabling digital fund management
An SVF license enables regulated entities to hold customer funds in digital accounts.
This framework allows businesses to load, hold and spend money through digital accounts. It reduces reliance on traditional banking processes for certain transactions.
For Pemo’s customers, the company said this will provide faster access to stored funds. It will also support flexible corporate card funding and consolidated control over company cash through a single platform.
According to Pemo, SMEs account for around 90% of operating companies in the UAE and contribute over 60% of non-oil GDP.
Despite this footprint, small businesses receive only about 10% of total bank funding, leaving them reliant on legacy banking infrastructure to manage daily cash flow.
Expanding beyond spend management
Since launching in 2022, Pemo has scaled to support more than 6,000 businesses in the local market. Its client list includes established brands such as Talabat, Sodexo and Al Marwan Group Holding.
“From day one, Pemo has been built for SMEs here,”
said Ayham Gorani, Co-Founder and CEO of Pemo.
“This milestone means we can keep deepening that support while opening the door to new products that go beyond spend management and make managing business finances even simpler.”
The company plans to use the regulatory foundation to accelerate the development of new product lines.
Pemo indicated it expects to make additional announcements regarding new partnerships and expanded offerings in the coming weeks.
Featured image credit: Edited by Fintech News UAE, based on image by Pemo
