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Al Etihad Payments (AEP) a subsidiary of the Central Bank of the UAE (CBUAE) has announced it will launch a 24/7 instant payments system and domestic card scheme.
UAE launch new domestic card scheme
The central bank says the launch is designed to transform the landscape of digital payments in the country and began implementing its National Payment Systems Strategy in 2021.
In 2019 it launched its real-time payments system Immediate Payment Instructions which to date has gained limited traction, despite the support of over 70 financial institutions.
In this context, the government approved the formation of Al Etihad Payments in 2020.
As part of its Financial Infrastructure Transformation (FIT) programme introduced in 2023, CBUAE’s launch of Al Etihad Payments aims to implement an innovative, interoperable, and enabling payments infrastructure allowing licensed financial institutions and payment service providers to further enhance customer experience through advanced payment solutions.
As well as bulking up the countries RTP system it will also develop the UAE’s first national Domestic Card Scheme (DCS).
Scheduled to launch in early 2024, the DCS will aim to facilitate the growth of e-commerce and digital transactions in the UAE, bolster financial inclusion, support the nation’s digitisation agenda, increase alternative payment options, reduce the cost of payments, and enhance the UAE’s competitiveness and position as a global digital payments leader – to name just a few initiatives!
Commenting on the agreement, Khaled Mohamed Balama, Governor of CBUAE, said, “The FIT programme, as well as the signing of this agreement, underscores CBUAE’s commitment to accelerating the digital transformation of the financial sector and bolstering digital payments, in line with the ambitions of the UAE’s leadership.
The development of the DCS is an integral FIT initiative and an achievement in the payments space which seeks to support the growth of digital transactions and e-commerce whilst ensuring business continuity.”
“The establishment of a Domestic Card Scheme for the UAE is a momentous step towards achieving the nation’s ambitious digital payments strategy, facilitating the transformation of the UAE’s financial sector, fostering greater financial inclusion and strengthening the country’s economic resilience,” continued Saif Al Dhaheri, Assistant Governor – Strategy, Financial Infrastructure and Digital Transformation at CBUAE.
“We are pleased to collaborate further with our counterparts in India and are confident that we have chosen the ideal partners to accomplish this venture with.
We also look forward to establishing an innovation fund that will look to support the payment systems of India and the UAE, drive R&D, and foster the capabilities of UAE citizens to ensure their effective management of the DCS.”
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