UAE launches local payment card system and platform for instant payments

Gulf Today, Staff Reporter

In line with the vision of His Highness Sheikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister, Minister of the Presidential Court, and Chairman of the Board of Directors of the Central Bank of the United Arab Emirates, the Central Bank launched the Financial Infrastructure Transformation Programme to accelerate digital transformation in the financial sector, as part of a more comprehensive strategy to make the Central Bank among the best central banks in the world.

This program aims to support the financial services sector, enhance digital transactions, and raise the UAE's competitiveness in devoting its vision to be a financial center, a platform for digital payments, and a destination for excellence in innovation and digital transformation, by advancing innovation, cooperation, and competition in the financial sector.

The financial infrastructure transformation program includes the implementation of nine major initiatives, where the first phase includes a number of digital payment infrastructure and services such as the launch of a local payment card system, a platform for instant payments, and the issuance of a digital currency for the central bank for cross-border and local uses.

In this context, digital payments initiatives seek to achieve financial inclusion, innovation in payments in a safe and efficient way, and to contribute to a cashless society.

As part of the aforementioned programme, the Central Bank will strengthen its digital leadership by adopting advanced supervisory technologies and data management solutions to implement robust supervisory processes and ensure financial stability.

In order to help the financial sector move forward towards the desired digital age, the next stage of the transformation program is to develop and implement a number of digital infrastructures, including the establishment of financial cloud platforms, electronic know-your-customer and open finance, as these digital infrastructures will improve regulatory compliance, It reduces operating costs, enhances innovation and customer experience, and most importantly, enhances security and operational flexibility.

The full integration of the program, by 2026, will create an important platform to support the country's vision "We are the UAE 2031" and the national strategy for the digital economy. This will also support the central bank's mission of promoting monetary and financial stability and consumer protection through a strong financial infrastructure and the adoption of digital technologies.

Khalid Muhammad Balama, Governor of the Central Bank, said: “The launch of the Financial Infrastructure Transformation Program embodies the directions and aspirations of the wise leadership towards digitizing the economy and developing the financial sector, and we at the Central Bank are proud of our active role in building an infrastructure that supports this thriving financial system of the UAE and its future growth. We will continue to work with key partners to implement the program’s plan, achieve its goals, accelerate the adoption of digital services in the financial sector, and attract the best talent.”

More details and developments regarding the implementation of each of the pillars of the program will be announced in due course.

The nine initiatives of the Financial Infrastructure Transformation Program:

The local payment card system:

The first unified, secure and efficient payment card platform in the UAE, supporting the growth of e-commerce and digital transactions in the country.

Know your customer platform:

A secure and user-friendly platform to facilitate indirect customer access to the program and to continuously provide customer due diligence.

Central bank digital currency:

To become one of the best central banks in issuing a central bank digital currency for both cross-border payments and domestic uses to remove the difficulties and barriers to cross-border payments, and to help drive innovation in domestic payments.

Open Funding:

Stimulating innovation and competitiveness, as well as cooperation in the financial services sector through mutual association and joint action between all major parties and concerned institutions.

Supervisory technology:

Advanced supervisory technology supports the control and supervisory processes.

Innovation Center:

A collaborative platform for sharing, research and development of FinTech methods.

Instant payments platform:

A safe, efficient and robust payment platform that supports financial inclusion to reach a cashless society through digital payments.

Financial Cloud:

A secure, flexible, scalable and reliable sovereign financial infrastructure.

Excellence and customer experience:

Supporting exceptional customer experiences and promoting a culture of excellence in the financial sector.