Retail Payment Systems
In the OIC Member Countries
92
There were 4,172 ATMS and 67,708 PoS terminals in the UAE at the end of 2011. All ATMs in
the UAE are interconnected via UAE SWITCH (HSBC, 2013). UAE SWITCH also connects the
country’s ATM network to the ATM networks of its fellow GCC member states (via the GCCNet
ATM network). ATM users are also able to withdraw cash from ATMs in Lebanon, Egypt and
Iran. All payments cards issued since 2011 have been EMV-compliant. Full migration to EMV is
expected by 2014. All PoS terminals in the UAE have been EMV-compliant since March 2012.
The e-Dirham card is an e-purse card, primarily used as a payment method for government
services. It is issued to companies and individuals in the UAE by seven banks and the Ministry
of Finance and Industry. The e-Dirham card can be used at EFTPOS terminals and online (E-
Dirham Payment Gateway).
Electronic banking is available in the UAE and offered by the majority of the country’s banks.
There is no bank-independent electronic banking standard in the UAE; each bank offers its
own proprietary systems for corporate banking purposes. Services available include balance
and transaction reporting and payment initiation. Internet banking is becoming increasingly
popular among retail users and small companies. Internet penetration in the UAE stands at
71% of the population.
Mobile banking is offered by the country’s leading commercial banks; mobile account-to-
account transfers are popular. At the end of 2012, there were 13 million mobile phone users in
the UAE; a penetration rate of approximately 160%.
Summary
The UAE has carefully moved into state-of-the-art banking practices throughout its system
with advanced mobile, PoS and other retail payment systems. Financial services rest on almost
ubiquitous banking, internet and mobile phone use. Behind this is an effective large value
payment system that is being used as the backbone for further extension of e-banking and
other such services.