Real-time digital payment software provider ACI Worldwide is helping banks connect to the United Arab Emirates’ (UAE) Instant Payments Platform (IPP) expected to roll out in October, according to a press release on Thursday (Jan. 20).
The IPP facilitates real-time payments between bank accounts, and participation by financial institutions in the country is mandatory. The framework offers core payments, Request to Pay and additional overlay utilities, all integrated with new instant payment rails.
In the next few days, the UAE Central Bank is planning to announce the technical specifics that power the new undertaking. The real-time payments scheme is part of the central bank’s plan to accelerate the enhancement of the country’s payments infrastructure.
See also: UAE Central Bank Begins Issuing Retail Payment Licenses
The IPP is part of the UAE’s National Payments Systems Strategy, which is striving to enhance payments services, advance financial inclusion and further economic stability in the country.
“The announcement to build a domestic real-time payments scheme mandatory for all financial institutions is testament to the vision and ambition of the UAE Central Bank. It signifies the nation’s commitment to continue to elevate the country’s global recognition as a leading economic and financial hub,” said Craig Ramsey, global head of real-time payments at ACI Worldwide.
“ACI already has a large footprint in the UAE and is supporting some of the largest banks in modernizing their payments infrastructure. As the global leader in real-time payments, we know first-hand that real-time payments drive economic growth and promote financial inclusion. We are excited to be shaping the future of real-time with our stakeholders in the UAE this year,” Ramsey said.
Read more: Indonesia, UAE Banks Collaborate on Cross-Border Payments
The pandemic fueled the adoption of digital payments and shopping, with real-time payments anticipated to exceed a 5% share of all digital payment transactions in 2024 and compound annual growth rate of 63.1% between 2020 and 2025, per the release.
ACI supports 17 real-time domestic schemes worldwide, including Zelle, TCH and FedNow in the U.S. In Europe, roughly half of the U.K.’s Faster Payments (UKFP) and two-thirds of Hungary’s GIRO transactions are processed through ACI Enterprise Payments Platform. ACI supports real-time payments in Malaysia and STET’s real-time payments platform for payment service providers in Europe.