Islamic Finance

New app a forerunner for cashless payments in UAE

| 05 October, 2017
 Michael Fahy
New app a forerunner for cashless payments in UAE
Photo: Syda Productions / Shutterstock.com

OCTOBER 5, 2017 

A digital platform created by 16 banks in the United Arab Emirates and designed to facilitate cashless payments is set to launch its new app next week.

Emirates Digital Wallet, a collaboration between a range of banks, including First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Dubai Islamic Bank, Mashreq Bank, RAKBANK and others, will unveil the ‘klip’ app at GITEX Technology Week next week.

The organisation said that klip paves the way for cashless spending, as well as the transfer and storage of money for all UAE residents, including those that do not currently have bank accounts.

However, customers who download the app will not actually be able to make payments just yet. A spokesman for Emirates Digital Wallet said a soft launch for the service is planned for later this year, with a full rollout expected by the end of the first quarter of 2018.

klip would “provide a strong boost to the UAE’s effort to build an inclusive digital payments ecosystem”. / klip / Handout via Thomson Reuters Zawya

The 16 banks have worked on the launch of Emirates Digital Wallet with EDC (Electronic Documents Centre – a joint venture between Emirates Post Group and Abba Electronics) and with Mastercard to deliver the service.

Maki Vekinis, general manager of the Emirates Digital Wallet, said in a press statement: “There is a new cashless payment system launched almost every week somewhere in the world, but none of them seriously aim to remove the use of cash throughout the economy, none of them have the buy-in of the leading national banks, and none have the strong backing of government.”

He said that removing physical cash offered greater security for users.

Abdulaziz Al Ghurair, chairman of the UAE Banks Federation, said that the launch of klip would “provide a strong boost to the UAE’s effort to build an inclusive digital payments ecosystem”.

At GITEX, the firm will demonstrate how the app can be used to complete simple transactions like paying bills, taxi journeys or for food shopping.

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