UAE set to launch its domestic card scheme

The United Arab Emirates (UAE) is set to launch its own domestic card scheme (DSC). The initiative is meant to enhance financial inclusion and promote the use of digital payments. Besides, it will be useful in encouraging strategic independence from global payments giants like Mastercard and Visa.

UAE’s domestic card scheme

UAE’s central bank (CBUAE) and Al-Etihad Payments, its subsidiary payments infrastructure provider, are set to develop and implement its DSC via a collaboration with NPCI International Payments Ltd (NIPL). The latter was involved in the development of India’s RuPay card scheme. RuPay is India’s global card payment network with a wide acceptance online, in stores, and ATMs.

With regards to UAE’s DCS project, NIPL will be responsible for building the foundational infrastructure, offer fraud monitoring, data analysis support, and operate the DCS. CBUAE is hopeful that the card scheme will be in operation from early 2024.

The central bank’s assistant governor of strategy, financial infrastructure and digital transformation, Saif Al Dhaheri stated, “We are [leased 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 UAW, drive R&D, and foster the capabilities of UAE citizens to ensure their effective management of the DCS.”

CBUAE’s latest initiative comes as it launches Aani, an instant payments platform. Based on a press release on 16thOctober, the initiative is part of the central bank’s Financial Infrastructure Transformation (FIT) program.

Aani is designed to offer instant, secure, and seamless digital payment solutions to consumers, corporates, enterprises, and government bodies. Subsequently, the entities will be able to process transactions instantly and safely at any time of day or night. As part of the embedded features, it will be possible to conduct instant money transfers by only using the recipient’s phone number.