With reference to a story published by Business Recorder on July 4, UAE-based financial technology start-up and digital banking app YAP clarified that it has received an In-Principle Approval for the EMI (electronic money institution) licence in Pakistan and PSP (payment service provider) in Ghana and in Saudi Arabia.

YAP added that it raised $41 million as it seeks to expand into new markets and enhance its technology offerings.

The funding round was led by Saudi Arabia-based investment company Aljazira Capital. Global investment conglomerate Abu Dawood Group, Saudi Arabia's Astra Group, Dubai-based private equity business Audacia Capital and family offices also participated in the funding round, the company added in the statement.

The fintech platform, which was launched in 2021 in partnership with RAKBank and has more than 130,000 users signed up on its app, plans to complete its Series A funding by the end of the year, it added.

"We just got the In-Principle Approval for the EMI (electronic money institution) licence in Pakistan and PSP (payment service provider) in Ghana and in Saudi Arabia. Together with the bank we are going to apply to the central bank," Chief Executive and co-founder Marwan Hachem was quoted as saying.

Demand for digital payments and other FinTech services has grown due to the onset of the coronavirus pandemic, as more people use online banking services to transfer money and pay for e-commerce transactions.

FinTech funding worldwide surged 68% annually to $210 billion in 2021, a report by consultancy KPMG showed in March, added the statement.

“We look forward to expanding into new markets and enhancing our offering in the months ahead with these investments,” said Anas Zaidan, co-founder and managing director of YAP.

YAP also plans to launch in Egypt soon, the statement added.