CBUAE issues new rule on retail digital payments

CBUAE issues new rule on retail digital payments

The Central Bank of the United Arab Emirates (CBUAE) on Saturday unveiled the Retail Payment Services and Card Schemes Regulation, the fourth regulation in the enhancement journey as it prepares the UAE for a new era of digital payments.

The Regulation is a continuation of the CBUAE's efforts to foster safety and soundness for consumers regarding retail payments services and the operation of payment card schemes.

The Regulation introduces a licensing regime for payment service providers operating - or wishing to provide - one or more of nine payment services or payment card schemes in the UAE. These include: payment account issuance, payment instrument issuance, merchant acquiring, payment aggregation, domestic and cross-border fund transfers, payment tokens, payment initiation, and payment account information services.

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.