The UAE Central Bank Has Started Issuing Retail Payment Licenses. The Central Bank of the United Arab Emirates (CBUAE) has released a new regulation allowing retail payment services to be licensed, as part of the country’s continued efforts to prepare for digital payments.
The Retail Payment Services and Card Schemes (RPSCS) Regulation was published by CBUAE in July.
It lays forth the procedures for obtaining and maintaining a retail payment services license as well as managing a card scheme.
The rule allows for a one-year transition period to allow current payment service providers and card schemes to obtain the necessary licenses.
It further states that, with the exception of exempted persons, no company can provide or promote retail payment services without a license.
These are primarily CBUAE-licensed banks, and even they must notify the central bank if they propose to offer retail payment services.
This shift occurs at a time when major UAE organizations are becoming more aware of the cash flow problems that small businesses and suppliers face, prompting them to investigate new payment methods.
Payment account issuance services, payment instrument issuances, merchant acquiring services, payment aggregation, domestic fund transfers, cross-border fund transfers, payment token services, payment initiation services, and payment account information services are all included in the regulation.