A license for a Payment Service Provider (PSP) is issued under the new e-Payment Regulation of The United Arab Emirates (UAE). This regulation was issued in January 2017 as a part of the Smart Dubai initiative. The main aim of the regulation is to promote the growth of financial services providers who provide safe payment facilities.

 

UAE Payment Service Provider (PSP) License

 

 

A license for a Payment Service Provider (PSP) is issued under the new e-Payment Regulation of The United Arab Emirates (UAE). This regulation was issued in January 2017 as a part of the Smart Dubai initiative. The main aim of the regulation is to promote the growth of financial services providers who provide safe payment facilities.

How can I get a UAE PSP License?

Under the provisions of the Regulation, four categories of payment service providers can be licensed:

  • Retail payment service providers: Commercial Banks and other forms of Payment Service Providers which provide peer to peer, retail and government digital payments
  • Micro-payment service providers: For unbanked and underbanked markets
  • Government Service providers: Government bodies that offer digital payment
  • Non-Issuing service providers: Non-issuing and non-deposit taking institutions that offer payment services

All the above-mentioned categories require licenses to function. 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 regulation explicitly does not allow the use of virtual currencies.

 

What is the UAE PSP License Requirements?

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.

UAE PSP License Costs

The fee for an application for a license varies on a case to case basis. However, considering that it is one of the most sought after licenses, it can be a valuable investment for any business.

Empire Global has a team of experienced professionals who will assist you through the entire process of UAE PSP License application including assistance in the preparation of documents, submission of application and responding to any queries from the Central Bank. 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 PSP License.

 

Licensing options for UAE Payment Service Provider (PSP)