The United Arab Emirates (UAE) is set to launch its first national Domestic Card Scheme (DCS) aimed at promoting digital payments and expanding financial inclusion across the country. The Central Bank of the UAE (CBUAE), in collaboration with Al-Etihad Payments and NPCI International Payments Ltd (NIPL), will spearhead the development and implementation of this new system.
NIPL, a subsidiary of the National Payments Corporation of India, is well-known for promoting India’s Unified Payments Interface (UPI) and RuPay card schemes globally. The strategic partnership between Al-Etihad Payments and NIPL has been formalized, with the Domestic Card Scheme slated for launch in early 2024.
As part of the CBUAE’s Financial Infrastructure Transformation (FIT) program introduced in 2023, this initiative aims to create an innovative and interoperable payments infrastructure. This will enable licensed financial institutions and payment service providers to offer advanced payment solutions that elevate the customer experience.
The DCS will play a crucial role in facilitating e-commerce growth, increasing digital transactions, and supporting the UAE’s digitization goals. It aims to provide alternative payment options, lower transaction costs, and enhance the nation’s global competitiveness in the digital payments space.
Saif Al Dhaheri, Assistant Governor of the CBUAE, remarked, “The establishment of the Domestic Card Scheme is a significant step toward realizing the UAE’s ambitious digital payments strategy. It will transform the nation’s financial sector, strengthen financial inclusion, and bolster economic resilience.” He also highlighted plans to establish an innovation fund to support the payment systems of both India and the UAE, drive research and development, and enhance the skills of UAE citizens in managing the DCS.
NPCI first launched its NIPL subsidiary in September 2020, with the aim of promoting India’s successful payment technologies on a global scale.
