Spare and Xsquare Introduce Pay by Bank for UAE Business Payments
Open finance infrastructure provider Spare has partnered with UAE-based B2B payments company Xsquare to embed account-to-account payment capabilities into business payment workflows. The collaboration is designed to give businesses an alternative to traditional card payments while supporting use cases such as payables, receivables, and cross-border transactions.
According to the companies, the integration is intended to reduce reliance on card networks, which can charge transaction fees of 2% to 3%, and to help businesses lower settlement delays and operational complexity. Xsquare clients will access Pay by Bank functionality through Spare’s unified API, creating a single connection point across multiple banking relationships.
Pay by Bank Features for B2B Workflows
The partnership brings Pay by Bank capabilities into commercial payment flows, allowing businesses to initiate account-to-account payments more directly through bank rails. Spare said the model is aimed at improving efficiency in business transactions where fragmented systems and multiple banking relationships can add friction.
Dalal Alrayes, Co-founder and CEO of Spare, said B2B payments across the region remain “heavily fragmented, expensive, and operationally complex.” She added that working with Xsquare enables Spare to bring Open Finance capabilities into practical business payment workflows and help companies reduce friction while operating more efficiently across markets.
Ashwin Shenoy, Chief Product Officer and Co-founder of Xsquare, said the partnership combines regulated account-to-account payment rails with a B2B payment orchestration layer. The companies said this approach is intended to support business customers that need more streamlined payment execution across different use cases.
Built on the UAE Open Finance Framework
Spare said the partnership is based on the Central Bank of the UAE’s Open Finance Framework. The company also recently launched its International Open Finance Payments solution in the UAE, adding to its payments infrastructure offering in the market.
By aligning with the UAE’s Open Finance environment, Spare and Xsquare are positioning their collaboration within a broader shift toward more connected, interoperable financial services. The companies said the initiative supports their wider strategy to expand Open Finance infrastructure for real-world business payment applications across the region.
Industry Analysis
The partnership reflects growing momentum behind account-to-account payments in the UAE, particularly in the B2B space where cost, speed, and operational efficiency are critical. By offering an alternative to card-based settlement, the model may appeal to businesses seeking lower processing costs and fewer reconciliation issues.
More broadly, the collaboration highlights how Open Finance infrastructure is moving from concept to practical use cases. If adopted at scale, Pay by Bank solutions could help reshape business payments in the region by connecting banking relationships more efficiently and reducing dependence on legacy payment rails.
