UAE banks have agreed to move forward with a mobile wallet project which will all devices to accept mWallets payments.
The Mobile Wallet Project is expected to see AED50 billion ($13.6 billion) in payments switched from cash to
mobile, a 35% market share, within five years.
The mWallet will be introduced in 17 of the country’s leading banks that have the required technology to launch the campaign.
It will then be offered by all banks through a membership scheme, said the UAE Banks Federation in its annual report.
“The mWallet is a critical initiative which is expected to be an important catalyst for the future of the digital economy as it benefits the financial services component of the Smart Government initiative,” said the report.
Mobile wallets use near-field communication chips inside mobile smartphones and tablets to transmit payment information. A customer wanting to make an mWallet payment will open an app on their device before entering a PIN and selecting the payment account they wish to use. They will then tap their device to an enabled payment terminal and the payment information will be transmitted. It will facilitate digital transactions such as utility bill payment and sending remittances.
The project was approved for implementation at the CEO Advisory Council in May 2015 and has been adopted by the Board of Directors. It was developed with the help and support of the Central Bank of the UAE, who published the first draft of the Digital Payments Regulatory Framework and through multiple workshops with the Smart Government NTSM (National Trusted Service Manager).
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