Citi Client Casebook Middle East and Africa 2022

Driving Growth and Operational Efficiency 44 The Challenge The existing method of payment available to flydubai’s customers was a choice of credit card payments online or via cash over the counter, this excluded the ability for customers to pay by bank transfer. Customers who fell under the required income threshold for credit cards were left out and could not purchase their flights online. Additionally, the cost of collecting funds through credit card acquiring was substantial, and therefore fl ydubai were keen to explore additional collection methods. The Solution With the introduction of the UAE Payment Gateway System (UAEPGS), Citi raised this idea with the flydubai treasury team as an alternative to credit card payments, providing customers with choice and allowing them to pay by bank transfer, in addition to offering a secure and cost-effective payment choice to their online customers. Utilising the UAEPGS would allow flydubai to collect AED funds in a secure and cost-effective manner, eliminating interchange fees currently incurred with credit cards and allowing a broader customer base to have access to online booking of flights. Thanks to a collaborative approach between Citi’s dedicated project team, the Central Bank and flydubai’s technical team, the solution went live on flydubai’s booking portal following a four-month implementation process. The Results flydubai will realize the following benefits: • Reduction in collection costs, thanks to the ability to collect fees via bank transfer, eliminating interchange fees. • Grow their online customer base, including those who do not have credit cards but still wish to purchase their ticket online. • Transparent and competitive pricing. • Enhanced reconciliation with full transaction details provided by UAEPGS and available to flydubai through the Citi platform. In tandem, flydubai’s customers benefit from: • Lower transaction costs, increasing value for customers. • No need to hold or carry a credit card, the payment method is available through desktop, mobile and mobile app with full approval flow in online banking website/application. flydubai flydubai collects funds through the UAE Payment Gateway System Dubai Aviation Corporation, trading as “flydubai”, is a government-owned airline in the United Arab Emirates with its head office and flight operations from Dubai International Airport. The airline operates a total of 95 destinations, serving the Middle East, Africa, Asia and Europe from Dubai.