The Finance World Magazine| Edition: December 2023

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UAE Banking From Cash to Contactless: Tracing the Progression of Payments in the UAE The United Arab Emirates (UAE) is swiftly embracing a digital revolution in its payment landscape, witnessing a surge towards contactless and online transactions. The evolution from traditional cash transactions to the modern era of contactless payments has been remarkable, reshaping the landscape of financial transactions across the country. 10 www.thefinanceworld.com December 2023
The advent of contactless payments has redefined how individuals conduct transactions in the UAE. This transformation gained substantial momentum, propelled further by the onset of the COVID-19 pandemic. With safety and convenience at the forefront, consumers began favouring contactless payment options, minimising physical touchpoints and embracing the speed and simplicity offered by tapping a card or mobile device to make payments. A recent report by Visa, a global leader in payments technology, unveils an astounding 87% adoption rate of digital payments among UAE consumers every week, signifying one of the highest rates globally. Notably, several banks in the UAE have played pivotal roles in this transformation, adapting their services to meet the evolving preferences of consumers. Emirates NBD led the charge in transforming contactless payments within the Central Europe, Middle East, and Africa region (CEMEA) with the launch of Emirates NBD Pay in 2016. Through the integration of Visa’s Token Service technology, the bank introduced a seamless NFC-based mobile contactless payment service. This advancement empowered Visa credit and debit cardholders to utilise NFC-enabled Android mobile devices for instantaneous in-store purchases via their upgraded mobile banking app. By incorporating NFC technology, Emirates NBD set a high standard in enhancing convenience for customers, capitalising on the swift global adoption of wireless communication protocols for contactless payments. Emirates NBD Pay, supported by Visa’s Token service technology, ensured secure transactions by replacing sensitive cardholder information with a unique digital identifier, safeguarding personal account details. This initiative not only represented a significant step towards digitising the banking experience but also signified the bank’s dedication to innovative mobile solutions for its customers, in line with evolving global trends in digital payments. Similarly, In 2020, Mashreq Bank took a pioneering stride in the Middle East & Africa region by collaborating with Mastercard to introduce a groundbreaking solution for Small and Medium Businesses (SMEs) named Tap On Phone. This innovation marked Mashreq Bank as the first in the MENA region to unveil such a service, part of their wider SME in a Box solution. This venture, supported by Mastercard’s Payment Gateway Technology, aimed to bridge the gap for local micro and small merchants, traditionally reluctant to accept digital payments due to the complexities and expenses associated with conventional point-of-sale systems. Tap On Phone emerged as a cost-effective, user-friendly digital payment technology tailored specifically for micro and small businesses, notably within the food and beverage industry and related services like food delivery and farmers markets. The solution ingeniously turned Android smartphones into secure payment acceptance devices for contactless cards, mobile wallets, and smartwatches, eliminating the need for additional hardware or setup costs. This move by Mashreq Bank, in collaboration with Mastercard, addressed the evolving needs of small businesses, emphasising the importance of adapting to new payment dynamics while offering a safer, more convenient payment avenue for customers. Another notable contributor to this shift is the Abu Dhabi Islamic Bank which achieved a significant milestone by launching the region’s inaugural tokenised, contactless payment methods under ‘ADIB PAY’, in collaboration with Tappy Technologies and Visa, in December 2022. This pioneering initiative introduced an innovative avenue for ADIB Visa cardholders to conduct contactless payments using wearable accessories like rings, bracelets, and watches, eliminating the necessity of carrying physical cards. ADIB PAY’s novel feature includes a tokenised contactless payment clasp that seamlessly transforms various wearable items into smart payment devices, initially offered to select customers. The setup process for ADIB PAY is streamlined and swift, facilitated by Tappy’s Token Enablement Services (TES) solution and a companion Universal Passive Provisioning Unit (UPPU) that automatically provisions the digital card to the embedded chip within the payment clasp. This tokenisation ensures data security by replacing sensitive card information with non-exploitable data elements, aligning with ADIB’s commitment to providing secure and intelligent payment options. Moreover, In 2020, Abu Dhabi Commercial Bank (ADCB) introduced an innovative way for businesses to accept payments without physical terminals through ADCB PACE PAY, powered by Visa. This virtual payment system operates on smartphones and tablets, eliminating the need for additional hardware. It allows businesses to receive card payments in-store by scanning cards or generating payment links for remote transactions, perfect for home deliveries. The simplicity of this solution, pre-integrated into a payment gateway, facilitates smaller merchants’ shift to online sales without complex setups. ADCB, in collaboration with Visa, aimed to support small businesses in the UAE by offering this digital payment solution at no transaction cost. The initiative acknowledges the growing importance of contactless payments and seeks to address the challenges faced by businesses reliant on cash transactions. ADCB’s effort with ADCB PACE PAY signifies its commitment to aiding businesses in adapting to evolving payment preferences while embracing the shift towards a cashless economy in the UAE. The evolution of payment methods in the UAE extends beyond individual banks. The government’s initiatives, such as the introduction of the Emirates Digital Wallet, have significantly contributed to the proliferation of contactless payments. This digital platform allows users to store multiple cards and make transactions conveniently through a single application. The success and widespread adoption of contactless payments by these banks illustrate a fundamental shift in consumer behaviour. The convenience, speed, and enhanced security features offered by contactless transactions have propelled their rapid acceptance among UAE residents. The UAE’s journey from cash-dominated transactions to the widespread acceptance of contactless payments signifies a paradigm shift in the country’s financial landscape. As technology continues to evolve, the progression towards more sophisticated and secure payment methods is poised to further revolutionise the way transactions are conducted in the UAE. December 2023 www.thefinanceworld.com 11
Page 2: GROW YOUR BUSINESS We make Short /
Page 6 and 7: Contents December 2023 PERSONAL FIN
Page 8 and 9: Personal Finance Budgeting Strategi
Page 12 and 13: UAE Banking News Abu Dhabi Chamber
Page 14 and 15: Event CEO Clubs Network Launched Ch
Page 16 and 17: UAE Reforms Adapting to Reform: 5 R
Page 18 and 19: Fintech Fintech Innovators: Reshapi
Page 20 and 21: Fintech News Raiven Capital Unveils
Page 22 and 23: Fintech Application ADSS: NEXT GENE
Page 24 and 25: Business Transformative Leadership
Page 26 and 27: Business News UAE’s First-Half 20
Page 28 and 29: Asus TUF Gaming Z790-Plus ASUS TUF
Page 30 and 31: Cover Story Business Leaders Crafti
Page 40 and 41: Wheels Specifications Torque: 500 N
Page 42 and 43: Start-up The Meteoric Ascent of UAE
Page 44 and 45: Energy UAE’s Transformative Journ
Page 46 and 47: Energy News Qatar and China sign 27
Page 48 and 49: Wheels Exeed E03 Exeed E03, the lat
Page 50 and 51: Healthcare Advancements, Achievemen
Page 52 and 53: Merger & Acquisitions Strategic Bus
Page 54 and 55: Merger and Acquisition News EDGE Gr
Page 56 and 57: Cryptocurrency From Trends to Busin
Page 58 and 59: Real Estate Anticipating Change as
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Real Estate News Saadiyat Island To
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Funding and Investment Legislative
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Funding and Investment News EU Pled
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Digital Assets From Oil to Web3: RA
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Stock Market The Underpinnings of U
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Corporate Tax A Comprehensive Guide
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Corporate Results e& Q3’23 Net Pr
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Indulge in Joy Discover thoughtful
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Sport as a Business Exploring the A
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Sports News ILT20 Introduces School
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Tourism Beyond Borders: GCC Unified
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Investment in Tourism The rise of t
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Global News India’s Adani Green i
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Investment in Art Brushing Wealth:
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Local News Dubai developer Union Pr
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Travel 4 Visa-Free Destinations For
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Travel News UAE announces visa-free
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The Finance World Magazine| Edition: December 2023

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