UAE Central Bank gives green light to UAE’s first paperless Direct Debit Marketplace

The UAE Central Bank (CBUAE) has given the go ahead for the country’s first paperless direct debit marketplace, to provide payers and merchants with an all-in-one solution to make regular monthly payments. A communication to banks and financial institutions in the UAE confirmed that the Marketplace has received the green light to go live, saying, “We would like to announce that Direct Debit Marketplace (DDMP) will enact the role of a ‘special’ sponsoring entity, and will be included as a direct participant in UAEDDS.” Developed by UAE-based FinTech company, Direct Debit System, the direct debit marketplace has been established to provide residents and citizens of the UAE with a safe, legal alternative to make all their recurring payments in one place. Accessed only through UAEPASS, the marketplace offers users peace of mind, with all payments facilitated through the platform being integrated with, and regulated by, the UAE Central Bank. Ummair Butt, founder and CEO of Direct Debit System said, “We are delighted to be given the official go ahead and are grateful to the Central Bank and its leadership for allowing us to be part of its digital payments transformation agenda for the country. Since our soft launch in September, we have received incredible feedback from businesses who want to move to the paperless and digital transformation space. Our first merchant is set to accept its first Direct Debit payment in March 2023.” It is predicted that direct debit can help over 96 per cent of monthly salaried people to stay out of debt and budget their salaries better, by paying monthly and avoiding quarterly bulk cheques. Payers can easily settle recurring expenses such as school fees, insurance, rent, gym memberships, and any other subscription-based expenses. The system is DESC (Dubai Electronic Security Center) compliant, with users’ data positioned safely behind government firewalls and systems, which are among the best in the world. The marketplace is bank agnostic, which means that it does not affect a merchant’s relationship with their banking services provider. Marketplace provides added advantage to real estate companies by providing control over tenants ability to cancel direct debit during the period of tenancy. With a fixed-fee structure, it is a cost-effective solution for all merchants who use cheques or credit cards to accept payments. DDMP issues a digital bounced DD report for merchants who wish to take the bounced payment matter to UAE Courts. The Marketplace also offers digital reconciliations for all Direct Debit payments, creating cost-time savings for participating merchants. Marketplace provides a sandbox environment to any merchant who wishes to test standardized APIs and integrate DD module into their Accounting System or CRM. Butt added: “Our mission is to encourage a culture of monthly direct debit payments for all big or small ticket items, at very low cost to merchants and free of charge for payers. Although UAEDDS has the capability of payer-driven payments, taking that route poses an incredible challenge for merchants to identify and reconcile a payment popping up in their bank. It is our belief that because direct debit is an instrument to execute a contract of payment, the merchant must have control over terms, therefore initiate the DD payment process and retain the control. DDMP offers exactly that.” Copyright © 2022 Khaleej Times. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

UAE Central Bank gives green light to UAE’s first paperless Direct Debit Marketplace

DISCOVER MORE

FTX reaches deal to recover over $400mln from hedge fund Modulo

UAE Central Bank Digital Currency strategy launched

ANB capital partners with DirectFN to launch Nextgen Trading Platform

Switzerland’s digital asset bank Sygnum opens Middle East hub in Abu Dhabi

Visa joins Dubai FinTech Summit as a co-host sponsor

Egypt launches first center to support innovative non-banking fintech solutions

Fintech investment in EMEA ‘drops sharply to $44.9bln in 2022’

Saudi fintech Tamara secures $150mln debt facility from Goldman Sachs

Banking turmoil: Fitch Solutions revise 2023 gold price forecast to $1,950 an ounce

2 African development banks invest $16bln in oil, gas projects

GCC central banks track US Fed move; hike key rates by 25bps

Will gold face more downside or upside after Fed's rate hike?

UAE exchange firm Al Ansari upsizes IPO on strong investor demand

Saudi's SAMA grants permit to 'Buy Now, Pay Later' firm

MakeO acquires Dubai-based health tech startup Smileneo

'Hub71 FinTech Pitch Day' to support Abu Dhabi’s leading fintech firms

Paymob, Shahid to expand VOD digital payments in Egypt

KIBPay service launched for higher efficiency in fund collecting

LATEST VIDEO

VIDEO: LSE-listing will facilitate more funding opportunities for us, Dar Global CEO

ZAWYA COVERAGE

Will gold face more downside or upside after Fed's rate hike?

Kenya signs $250mln deal with UK to boost food production

PODCAST: IFC is ready to back governments privatisation plans with capital

UAE's Presight AI to debut on Abu Dhabi Securities Exchange next week

China supports accounting firms, including Deloitte, doing business in the country

Dubai: Some private schools start notifying parents about fee hikes

UAE: Public transport fare ranks among the cheapest in the world, says new study

Ancelotti to Brazil would be a no-brainer, CBF president says

German workers' strike over pay is matter of survival, union boss tells Bild

THE BRI REPORT

China is reshaping the Belt and Road Initiative ahead of a post-pandemic era

DISCOVER MORE

LATEST VIDEO

ZAWYA NEWSLETTERS

ZAWYA COVERAGE