On 1 January 2017, the Central Bank of the United Arab Emirates
issued the Regulatory Framework For Stored Values and
Electronic Payment Systems (Regulations). The overarching
goal of the Regulations is to help facilitate the increased
adoption of secure digital payments, which it strives to accomplish
by introducing a mandatory licensing and related compliance regime
for certain electronic payment service providers operating in the
UAE.
What is a payment service provider?
A Payment Service Provider (or PSP) is effectively any entity
that provides digital payment services (including using electronic,
mobile or magnetic means but excluding credit and debit card
payments) within the UAE. The Regulations further define the
concept of a PSP into four distinct sub-categories, each of which
is subject to additional individual requirements from a licensing
and compliance perspective. These sub-categories are as
follows:
