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Pemo, a UAE-based startup specializing in expense management solutions for Small and Medium Enterprises (SMEs), has announced securing preliminary approval from the Central Bank of the UAE (CBUAE) for a Stored Value Facility (SVF) license. This marks a strategic milestone in the company's plans to expand its digital financial services and enhance its fund management capabilities.

Once the final licensing procedures are completed in the coming months, Pemo will be among the first expense management platforms in the UAE to obtain this approval. This will enable the company to hold and manage corporate funds digitally, paving the way for a broader suite of financial services that extend beyond traditional expense tracking.

Unlocking Digital Wallets and Faster Funding

The SVF license is a regulatory framework issued by the CBUAE that permits licensed entities to hold customer funds within digital wallets. This allows businesses to deposit, retain, and utilize funds for digital payments without relying on traditional bank accounts for every single transaction.

Direct Access: SMEs will gain immediate, direct access to their financial balances.

Accelerated Funding: The process of funding corporate cards will be significantly expedited.

Centralized Control: Businesses can manage daily cash flows and multiple financial operations seamlessly through a single, unified platform.

Addressing SME Financial Challenges

Pemo highlighted the critical economic role of SMEs in the UAE, noting that they represent approximately 90% of all operating businesses and contribute over 60% to the non-oil GDP. However, their share of total bank financing remains disproportionately low at roughly 10%. This funding gap creates substantial challenges in liquidity and cash flow management, forcing many companies to rely on slower traditional banking procedures.

By operating on a regulated financial infrastructure, Pemo aims to drastically reduce the time required for fund transfers. Companies will be able to load balances, spend, and make payments from one place without being restricted by traditional bank transfer schedules, thereby enhancing overall liquidity management.

A Strategic Transformation

The company stated that its solutions were built upon a direct understanding of the daily operational challenges faced by SME owners in the UAE. This preliminary approval reflects Pemo's commitment to supporting the nation's goals regarding digital transformation, innovation, and financial inclusion.

Ultimately, this achievement represents the first major step in Pemo's evolution from a specialized expense management platform into a fully integrated digital financial services provider tailored to the growing needs of the UAE market.