21
ANNUAL REPORT 2015
BANKS APPROVE
m
WALLET
F
ollowing extensive groundwork laid by
the UAE Banks Federation, the Mobile
Wallet Project, mWallet, was approved for
implementation at the CEO Advisory Council in
May 2015 and has been adopted by the Board
of Directors. The mWallet is a critical initiative
which is expected to be an important catalyst
for the future of the digital economy as it
benefits the financial services component of
the Smart Government initiative.
Developed with the help and support of the
Central Bank of the UAE, who published the
first draft of the
Digital Payments Regulatory
Framework
and through multiple workshops with
the Smart Government NTSM (National Trusted
Service Manager), the mWallet is backed by
17 leading banks that will provide the required
infrastructure and lead the launch campaign.
However, the mobile wallet will be offered
by all banks, and not only the 17 shareholding
banks, through a membership scheme to enable
wide use and acceptance.
Plans are underway to upgrade merchants
with devices that will be able to accept
payments from the mobile wallet, expecting to
switch from cash to mobile wallet for at least
AED 50 billion (35 per cent market share) within
five years.
Mobile wallets use near-field communication
chips inside mobile smart phones and tablets
to transmit payment information. When a
customer is ready to pay using a mobile wallet,
they open an app on their smart phone or
other device. The customer then enters a PIN
and selects the payment account they wish to
use, along with any special offers or customer
reward programs they want to apply. At the time
of payment, they simply tap their device to an
enabled payment terminal, and the payment
information is transmitted.
The mWallet will facilitate digital payments,
such as payments of utility bills and sending
remittances and will help reduce the workload
on physical branches.
ACTIVITIES
