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UAE leads the way in electronic payments in the Middle East
e-Dirham cards are the safest and fastest-growing smart payment tools in the country
e-Dirham system is gearing up for a phase of even wider adoption of advanced payment technologies
Abu Dhabi, UAE - The e-Dirham system, created by the UAE Ministry of Finance (MoF), will be showcased at the two-day event Cards and Payments Middle East from May 31 to June 1, at the Dubai International Convention & Exhibition Centre.
With the participation at the premier smart payment exhibition, the Ministry will be highlighting the latest services made available under the e-Dirham system. First launched in 2001, e-Dirham is the initiative of the UAE federal government in the financial sector. This is an extremely secure system that is in compliance with the highest encryption standards in the world. The volume of transactions conducted through e-Dirham has been rising significantly every year, ever since the G2 (second generation) services were introduced in 2011, in partnership with the National Bank of Abu Dhabi (NBAD).
This is the 17th year of Cards and Payments Middle East, and the event has drawn 300 exhibitors from all around the world. The event will be the biggest gathering of entities in the industry of payments, smart cards and ID cards. This provides a platform for them to explore new solutions and ways of making smart payments safer, faster and more efficient. The show is a launch pad for the latest products, services and technologies in this field.
His Excellency Saeed Rashid Al Yateem, Assistant Undersecretary of Resources and Budget Sector, Ministry of Finance, said: "The UAE leads the way in the Middle East in electronic payments through smart systems and cards that provide the utmost convenience and security. Being innovative requires us to lean more towards digital technologies in processes and services, in response to consumer preferences and financial transaction trends. The MoF's participation in Cards and Payments Middle East will be the perfect opportunity to demonstrate our achievements in the field of smart payment."
"The e-Dirham cards are the safest and fastest-growing smart payment cards in the country, and the system remains the main national e-payment portal. The system is extensively used to collect fees for services related to government and semi-government organisations. One of its most notable features is the very low transaction cost," Al Yateem added.
The e-Dirham 'Al Haslah' cards are available in gold, silver, red, blue and green - indicating types and features. The system includes offerings such as e-wallet, online payment, point of purchase payments, and facilities for automated teller machine and cash deposit machine transactions. The cards can be bought and re-loaded through the new generation of e-Dirham electronic collection machines.
"The e-Dirham revenue collection for federal government entities in Q1 2016 was more than AED 2 billion, from a total number of 5.1 million transactions. Moreover, e-Dirham had recently received the Certification of Compliance in Payment Card Industry Data Security Standard (PCI DSS) for its components and for the security compliance of its Triple Data Encryption Standard," Al Yateem mentioned.
Triple Data Encryption Standard (or 3DES) is an advanced method that encrypts data three times, ensuring tighter security against hacking threats. The e-Dirham system's certificate of compliance covers its various services, including electronic payment gateway, automatic clearing and settlement, hosting, secure storage of information, as well as devices and cards.
"An approach of continuous improvement and innovation has made these achievements possible. This edition of Cards and Payments Middle East will witness the launch of new innovative services to facilitate payment through partnerships with some of the biggest local companies. These new services, as well as e-Dirham's applications for mobile and e-wallet, self-service kiosks and e-Dirham paper receipts, among others, will form the axis of our participation," Al Yateem added.
Saif Ali Al Shehhi, Senior Managing Director of UAE Government Group & VVIP Clients, National Bank of Abu Dhabi, said: "We are seeing an increasing number of non-bank payment providers entering the market, such as high-tech, individual financing, exchange and remittance companies. Competition with such players requires strengthening collaboration between existing institutions such as banks, communication network operators, financial technology companies and payment service providers. This allows us to launch innovative initiatives and adapt to the developments."
"The e-Dirham system is currently gearing up for a phase of even wider adoption of advanced payment technologies. Payment through mobile wallets is fast gaining acceptance, particularly among the younger generation. We must bridge the gaps in financial and government services, integrating new technologies for the desired quantitative and qualitative transition," Al Shehhi said.
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About e-Dirham
The e-Dirham system is an initiative launched by the UAE Ministry of Finance in 2001, to provide an official electronic payment platform for collection of revenues and service fees of government and semi-government institutions. e-Dirham is a cashless payment system that adopts efficient, secure, state-of-the-art and world-class technologies; it is the first step in creating an e-government in the UAE.
Since its launch, e-Dirham has continued to innovate with upgrades to meet the aspirations and needs of its customers - both government institutions as well as individuals. In 2011, e-Dirham launched its second generation avatar, in collaboration with its banking partner, the National Bank of Abu Dhabi (NBAD). This enhanced the capabilities of the system by benefiting from NBAD's pioneering experience in electronic payment and revenue collection.
e-Dirham is now characterised by its compatibility with global networks and methods of payment. The system's flexible platforms easily integrate with e-government services, offering scalable and unlimited options to merge with the latest payment service applications. In line with the UAE's move towards 'smart government', e-Dirham supports the latest mobile applications, offering the e-wallet and payments through various other channels.
The variety of choices and channels include the 'Al Haslah' pre-paid cards, ATM/CDM machines, POS terminals, e-commerce payment systems over the Internet and through smart phones, as well as self-service e-kiosks.
These meet the needs of all types and classes of end-users and corporate firms; the channels are compatible with global payment methods including 'Visa'. e-Dirham is especially characterised by its affordable cost, as compared with other methods of payment. Low, fixed amounts are charged for services like fee payments and topping up the e-Dirham pre-paid card. The system ensures full protection for all parties associated in a transaction.
© Press Release 2016