ACI Worldwide, a global provider of real-time digital payment software, has announced its close collaboration with national banks to help them connect to the United Arab Emirates’ real-time payments scheme that is set to launch in October 2022.
The national platform
The UAE Instant Payments Platform (IPP) will enable instant transfers between bank accounts, with participation mandatory for all financial institutions in the country. The scheme will provide core payments and overlay services such as Request to Pay, built on top of the new instant payment system. The UAE Central Bank expects to announce the technical details that will underpin the new scheme in the coming days.
Moderising payments
The UAE Central Bank is seeking the modernisation of the country’s payments infrastructure and is accelerating this process by implementing a domestic real-time payments scheme. IPP is part of the country’s National Payments Systems Strategy and aims to provide best-in-class payments services, promote financial inclusion, and increase financial stability in the UAE.
“The announcement to build a domestic real-time payments scheme mandatory for all financial institutions is testament to the vision and ambition of the UAE Central Bank. It signifies the nation’s commitment to continue to elevate the country’s global recognition as a leading economic and financial hub,” said Craig Ramsey, global head of real-time payments, ACI Worldwide. “ACI already has a large footprint in the UAE and is supporting some of the largest banks in modernising their payments infrastructure. As the global leader in real-time payments, we know first-hand that real-time payments drive economic growth and promote financial inclusion. We are excited to be shaping the future of real-time with our stakeholders in the UAE this year.”
Growth of digital payments
COVID-19 has accelerated the transition from cash to digital payment methods in the UAE, with surging eCommerce contributing strongly to this change. According to ACI’s Prime Time for Real Time report, real-time payments are expected to surpass a 5% share of all digital payment transactions in 2024, with a CAGR of 63.1 percent between 2020 and 2025.
Saudi Arabia saw the launch of its first instant payments system in mid-2021.
