UAE Introduces New Rules to Usher Digital Payment ERA.pdf
1. UAE Introduces New Rules to Usher
Digital Payment ERA
Digital payment platforms are no strangers to our shores. New technological
advancements are popping up in the digital arena on a regular basis. As a
result, the wind sweeping through the specific sector heralds a storm that is
beginning to create a resonance in the Middle East.
The Central Bank of the United Arab Emirates (CBUAE) has released the
Retail Payment Services and Card Schemes Regulation, the fourth step in the
process of preparing the UAE for the new dawn of the digital payment era.
The Retail Payment Services and Card Schemes Regulation is the CBUAE’s
attempt to ensure consumer safety when it comes to retail payment services
and payment card scheme operations.
The regulation establishes a licensing framework for payment service
providers who operate or intend to operate one or more of the UAE’s nine
payment services or payment card schemes.
Payment account issuance, payment instrument issuance, merchant
acquisition, domestic and cross-border cash transfers, payment tokens,
payment aggregation, payment initiation, and payment account information
services are just a few of the services available.
Khaled Mohamed Balama, governor of the CBUAE, said: “Digital innovation is
rapidly reshaping the provision of domestic and global payment services, and
the Central Bank of the UAE is embracing this innovation. We promote digital
payments and support competition and innovation as well as the concept of
interoperability while setting high standards for safety and risk management.”
2. The new regulations kicked in recently, and current payment service providers
and card schemes have been allowed a one-year grace period to get the
necessary license from the apex bank of the UAE. Balama also added, “The
recent set of payment regulations promotes the pivotal role of CBUAE in
fostering digital innovation while maintaining the safety and integrity of
payment systems and services. CBUAE will always provide a solid foundation
as the guardian of the financial infrastructure systems stability.”
The Stored Value Facilities Regulation, which was revised in November 2020
to promote the growth of e-wallets issued by financial institutions and fintech
businesses, was the onset of CBUAE’s regulatory upgrading journey. The
Large Value Payment Systems Regulation and the Retail Payment Systems
Regulation followed the publication of the Stored Value Facilities Regulation.
These regulations provide licensing and designation regimes for big value and
retail payment systems, laying forth specific standards that are critical to the
financial system.
Due to the Covid-19 pandemic, consumers are more trusting of digital
payments because safety and convenience have been top of mind for them
over the last year.
In the future, new payment technologies such as digital currencies and
wallets, wearables, biometrics, contactless, and QR codes are expected to
surge in popularity as consumers get more comfortable with and understand
them, reducing the use of currency.
To satisfy the growing enthusiasm for the future state of remittance, a broader
selection of payment solutions, insights, and technological updation is
required to fulfill the need for developing payments and choices. Businesses
that can accommodate numerous payment and shopping options are best
positioned to whet the appetite of consumers around the globe.
3. Get Free Consultation
UAE Introduces New Rules to Usher
Digital Payment ERA
Level 18, City Tower-2,
Sheikh Zayed Road
PO Box 32665
Dubai – United Arab Emirates. Tel: +971 4 327 7775
E-mail: dubai@hlbhamt.com
www.hlbhamt.com