Thursday, January 5, 2017

UAE issues new rules for online payments

The UAE Central Bank on Wednesday issued new regulations for "stored value digital payments".

In a statement, the central bank said that the rules were finalised after an extensive consultation process over many months with the relevant stakeholders.

The objective of the regulations is to facilitate 'robust adoption of digital payments across the UAE in a secure manner', it said.

The Governor of the Central Bank Mubarak Al Mansoori said: "The issuing of these regulations is a landmark in supporting the government of UAE's vision to position the country as a global leader in digital services, via a knowledge-based and innovation drove the economy. The regulations are also designed to foster financial inclusion in the UAE."

The statement said that the regulations specify four licence categories under which entities can provide digital payments services. They are: (a) retail; (b) micropayment; (c) government; and (d) non-issuing.

"Each category is subject to a particular set of regulatory requirements with a view to providing protection for the UAE Payment System and Consumers," it said.

"The central bank recognises that Fintech development will play an important role in shaping the future of the financial services industry in the UAE. The central bank stands ready to support this innovation," the statement further said.

"The central bank will continue to take a lead role in implementing this new regulatory framework for digital payments with the aim of positioning the UAE as a global leader in trusted digital payments services, which are accessible to all consumers in the UAE," it said.