Which card scheme does the UAE offer?
The UAE Domestic Card Scheme is an important part of the Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE as in the form of a Payment Gateway. The CEPA should be finished by the end of this year. This agreement will open up new trade and business opportunities between the two countries, which have been partners for a long time and are strategically important to each other.
The NPCI International Payments Ltd (NIPL) in India came up with the Domestic Card Scheme (DCS) answer. It is based on India’s RuPay card system (Payment Gateway) and has extra features like fraud tracking services and analytics that make it more useful. Upholding sovereignty principles, speeding up market entry, and ensuring strategic freedom are the main goals of the DCS.
Hon.@CIM_GoI @PiyushGoyal & HH Shk Hamed bin Zayed Al Nahyan witnessed signining of the strategic partnership agreement on development of domestic card scheme of 🇦🇪 based on 🇮🇳RuPay card stack. Will transform UAE’s payment systems & mark a new era in 🇮🇳🇦🇪 technology partnership. pic.twitter.com/hzklpYx3O4
— India in UAE (@IndembAbuDhabi) October 5, 2023
But what is RuPay Payment Gateway?
RuPay Payment Gateway is a card payment network that is widely used in India. It was created and launched in 2014 by the National Payments Corporation of India. RuPay cards can be used for debit, credit, and pre-paid purchases. There are more than 750 million RuPay cards in use right now, which is more than 60% of all the cards given in India.
A lot of different banks, including public, private, and smaller ones, issue RuPay Payment Gateway cards. These cards have been a successful challenge to the popularity of major card payment systems like MasterCard and Visa.
Agreement on the UAE Domestic Payment Gateway Card Scheme
The deal to make the Domestic Payment Gateway Card Scheme happen in the UAE was signed on October 5, 2023. Al Etihad Payments (EAP), which is a branch of the UAE Central Bank, and NPCI International Payments Limited (NIPL), which is a wholly owned branch of the National Payments Corporation of India (NPCI), signed the deal.
The agreement also means that they will work together to create, implement, and run the UAE’s national domestic payment gateway card system.
The deal was signed at the eleventh meeting of the UAE-India High-Level Joint Task Force on Investments. Sheikh Hamed bin Zayed Al Nahyan, who is the Managing Director of the Abu Dhabi Investment Authority (ADIA), and Piyush Goyal, who is the Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles for the Indian Government, led this meeting together.
Advantages of the UAE Domestic Card Scheme
The UAE Domestic Card Scheme (DCS) is set to become the country’s first and most comprehensive card payment system, mixing safety and speed, similar to how Mastercard and Visa do it around the world. The DCS is a big step toward a digital economy in the UAE. This platform will be very important for supporting the growth of e-commerce and making sure that its services are tailored to meet the needs of each customer.
In addition to advancing digital commerce, the UAE DCS has the potential to make more people financially included, increase payment choices, lower transaction costs, and make the UAE a world leader in payment systems.
Using beneficiary identifiers like mobile numbers or virtual payment addresses, this deal will also make it possible for real-time, low-cost money transfers across borders. This change will especially help the large number of Indians who live and work in the UAE, making it easier for them to send over $15 billion to their home country every year.