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Wahed launches gold-backed debit card

Wednesday 25 January 2023 14:22 CET | News

Wahed, a US-based fintech serving Muslims, has opened a physical branch in central London and launched a new gold-backed debit card.

In order to foster client confidence in the brand, Wahed, which has received GBP 75 million in capital from family offices and angel investors, is opening a 140-square-meter branch at 89 Baker Street in London.

Wahed, a US-based fintech serving Muslims, opens a physical branch in central London and launched a new gold-backed debit card.

Along with the launch of the new branch, Wahed's new gold-backed debit card will enable users to make transactions using funds stored in an exchange-traded gold commodity (ETC).

Many Muslims in the UK choose to hold their money in cash rather than open regular bank accounts, which causes financial inequality because inflation reduces the long-term worth of cash.

The Muslim community may now use technology to access and invest their money responsibly and securely, storing it safely and ethically without running the risk of being exposed to Riba, thanks to Wahed's new gold-backed debit card. The community-focused finance service offers Muslims banking and investment options that are in line with their faith when combined with the new branch.

 

Wahedna’s story

Wahedna originally began as a Muslim-focused online banking service. To minimise exposure to loans or interest, known in the Islamic tradition as Riba, this explicitly implies avoiding money held in the conventional banking system.

Investments in businesses that profit from loan, gambling, alcohol, and cigarettes are prohibited by Wahed. Wahed accounts do not promise exorbitant returns on dangerous crypto assets or provide interest on deposits. Instead, the value of user deposits closely mirrors the value of gold, whose price varies according to supply and demand.

The company currently serves approximately 300,000 users across the UK, the US, and Malaysia, but it aims to serve 10 million customers in the coming years. Currently, it focuses on some of the most populous Muslim nations in the world, like Indonesia, Malaysia, and Nigeria. However, with solid financial support, it will be able to expand into other markets where there is a significant demand for ethical investing.

 

Islamic finance

The main cause of the widespread financial exclusion that occurs among different Muslim communities around the world is the absence of Shariah-compliant products. As Muslims are barred from using any financial services that involve the payment and receipt of interest (Riba), this refers to financial products and services that adhere to the fundamentals of Islamic law (Shariah).

With a total of 27 firms, the UK now has the most Islamic fintechs. Malaysia comes in second with 19 companies, and the United Arab Emirates (UAE) comes in third with at least 15 companies.

A Mambu study found that 74% of young Muslims want banks to make make investments that support their religious convictions and 75% want them to make investments that 'do good in the world'. In more detail, 62% of respondents opposed their banks funding to tobacco industries, while 69% preferred that their banks refrain from lending to gambling establishments.


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Keywords: product launch, SMEs, fintech, debit card, funding
Categories: Banking & Fintech
Companies: Wahed
Countries: United Kingdom
This article is part of category

Banking & Fintech

Wahed

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