ACI Worldwide said that it is collaborating with national banks to link to the UAE’s real-time payments scheme, which is slated to start in October 2022.
The UAE Fast Payments Platform (IPP) will enable instant transfers between bank accounts 24 hours a day, seven days a week, with all financial institutions in the country required to participate. Built on top of the new quick payment rails, the scheme will deliver basic payments as well as overlay services such as Request to Pay. In the coming days, the UAE Central Bank aims to announce the technical specifications that will support the new system.
For long years, the UAE Central Bank has actively promoted the modernisation of the country’s payments infrastructure; now, it intends to speed up the process by introducing a local real-time payments scheme. The IPP is part of the UAE’s National Payments Systems Strategy, with the goal of providing best-in-class payments services, promoting financial inclusion, and enhancing financial stability.
“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.
He added, “ACI already has a large footprint in the UAE and is supporting some of the largest banks in modernizing 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.”
COVID-19 has hastened the move from cash to digital payment systems in the UAE, as it has in many other nations in the region and around the world, with soaring eCommerce volumes playing a key role. Real-time payments are predicted to surpass a 5% share of all digital payment transactions in 2024, according to ACI’s Prime Time for Real Timereport, with a CAGR of 63.1 percent between 2020 and 2025.
ACI provides mission-critical real-time payments software that helps businesses process and manage digital payments, power omni-commerce payments, process bill payments, and manage fraud and risk. ACI presently supports 17 real-time domestic schemes around the world, including Zelle and TCH in the United States, as well as FedNow as it prepares to go into production. ACI Enterprise Payments Platform processes roughly 50% of UK Faster Payments (UKFP) transactions and 75% of Hungary’s GIRO transactions in Europe. Malaysia’s real-time retail payments platform (RPP) and STET’s real-time payments platform for PSPs in Europe are both powered by ACI technology. ACI’s real-time payments capabilities are used by a number of institutions in Singapore and Australia to access Singapore FAST and the Australian NPP (New Payments Platform).