A license for a Payment Service Provider is issued under the new e-Payment Regulation of the United Arab Emirates. Under the provisions of the Regulation, four categories of payment service providers can be licensed. The first among them is the Retail payment service providers which include Commercial Banks and other forms of Payment Service Providers which provide peer to peer, retail and government digital payments. The second category is Micro-payment service providers which provide services to unbanked and underbanked markets. The third category is Government bodies that offer digital payment. The last category consists of non-Issuing service providers consisting of non-issuing and non-deposit taking institutions that offer payment services.
The regulation basically seeks to regulate stored value facilities (electronic or magnetic) which can be used as payment media for goods or services. The activities which are permitted include remittance of funds, digital debit transactions, peer to peer payments, exchange of cash for digital funds and vice versa (subject to special permission).
The primary requirement for an applicant is that it has to show that it falls in one of the above-mentioned categories. The second requirement is that the applicant should be located in Dubai or any of the free zones. The applicant also has to prove that it has the required experience and personnel to deal with digital payment services. Applicants also have to prove that they have effective internal policies and also fulfill the minimum capital required for the business.
Empire Global has a team of experienced professionals who will assist you through the entire process of UAE Payment Service Provider application including assistance in the preparation of documents, submission of application and responding to any queries from the BaFIN. We request you to get in touch with Empire Global at the earliest to understand the entire process in detail and apply for a UAE Payment Service Provider.