UAE's Central Bank Issues License for Marketplace Direct Debit Operations
The United Arab Emirates (UAE) has taken a significant step forward in digital finance with the launch of the Direct Debit System (DDS), a fintech platform designed to simplify and streamline recurring payments for businesses and individuals.
Developed by Direct Debit System, this paperless marketplace for recurring payments is set to make a significant impact, particularly benefiting SMEs by enhancing liquidity management and operational efficiency. The system is licensed by the UAE Central Bank and is expected to benefit over 96% of monthly salaried individuals in the UAE.
One of the key advantages of the Direct Debit System is its cost-effective, fixed-fee structure, making it an attractive option for merchants in the UAE. The first merchant to accept direct debit payments through the system is set to do so in March 2023.
The Direct Debit System aims to make monthly direct debit payments cost-effective and free of charge for payers. It achieves this by automating recurring payments, validating IBANs, postponing or retrying collections digitally, sending automated notifications, and enabling same-day payment reconciliation. This digital process removes the need for physical paperwork or manual signatures, significantly reducing administrative effort and accelerating financial operations.
Ummair Butt, Founder and Chief Executive of Direct Debit System, has stated that the company aims to encourage a culture of monthly direct debit payments. He believes that this will help individuals avoid debt by better budgeting their income and staying on top of their monthly expenses, such as rent and school fees.
In a press release, Butt said, "We are excited to launch the Direct Debit System in the UAE. Our goal is to revolutionise the way people manage their recurring payments, making it easier, more efficient, and more reliable. We believe that this will have a significant impact on financial inclusion and cashless payments in the UAE."
With the Direct Debit System, merchants can save time without affecting their relationship with their banking services provider. The system uses API-driven direct debit technology integrated with UAE PASS authorization for secure mandate management, ensuring a seamless and secure experience for all users.
In conclusion, the Direct Debit System is set to transform the way payments are handled in the UAE. By automating recurring payments, validating IBANs, and providing secure, digital mandate management, the system promises to make payments faster, easier, and more reliable for users. As the first merchant prepares to accept direct debit payments through the system in March 2023, it's an exciting time for the future of digital finance in the UAE.
[1] Source: Direct Debit System Press Release, 2023. [3] Source: Direct Debit System Website, 2023.
The Direct Debit System, launched in the UAE, explicitly aims to revolutionize the business sector by simplifying and streamlining recurring payments, thereby enhancing liquidity management and operational efficiency, particularly for Small and Medium Enterprises (SMEs). This technology-driven platform is expected to have a significant impact on the UAE's digital finance landscape.
Ummair Butt, the Founder and Chief Executive of Direct Debit System, emphasizes the potential of this system to foster a culture of monthly direct debit payments, promoting financial inclusion and cashless payments in the UAE. With its API-driven direct debit technology and secure mandate management, the Direct Debit System offers merchants a cost-effective, secure, and seamless solution for managing recurring payments, paving the way for the future of digital business transactions in the UAE.
