Direct Debit cards and payments may well be taken for granted in Europe and the West, but in Dubai the UAE Central Bank has announced plans to roll out a Direct Debit System across the country from June 15th.
Working in a similar fashion to that of Direct Debit payments anywhere else in the world, the new system will allow users to make regular automatic payments from their bank accounts – putting it towards mortgage loans or credit card payments or even personal loans.
UAE Central Bank say that the decision has come due to a strategic initiative to boos the efficiency of payment systems in the UAE – most likely in an effort to roll out bigger payment systems like mobile payment platforms.
“The benefit for account holders is that they can plan their expenses more efficiently. Also, the UAE federal government strategy requires adopting technology to enhance electronic systems and improve services to banking customers in the UAE,” stated the bank in a press release.
“Given our focus as a regulator we believe it is necessary to have a prudent, stronger and stable economy. Our current intention is to establish a more convenient retail banking system that will create more stable and progressive economic development."
Do you agree that this is the right route to go down for UAE Central Bank?
Perhaps it's a little too late to begin rolling out Direct Debit?
Let us know your thoughts by commenting below.
At this year's Cards & Payments Middle East, the advancements in payment methods in the region, as well as the future of payments as a whole, will be a hot topic of discussion – something that you certainly won't want to miss out on if you plan to stay ahead of the payments game. You can download the prospectus for free here.