Set to formally launch later this year, consumers in Dubai will soon be able to make mobile payments through a new system backed by the local authorities. The new system will be integrated into the UAE-wide POS merchant network and will use mobile phone numbers and a secured PIN to create and access a new type of digital cash account.
In the new system, users will be able to simple enter their phone details across multiple channels including in-store and online and as a result of its government backing, consumers will be able to use the mobile payment system to pay bills and access government services. Commenting on the announcement, Bhairav Trivedi, CEO, Network International said,
“This solution heralds a new era of cashless payments across the region, enabling people to conduct transactions anytime and anywhere, in line with Dubai Smart Government’s smart transformation initiatives to support Dubai’s aspirations.”
While mobile payment systems around the world have been met with mixed success, the fact that this specific mobile payment system is not only backed by the government but will already be integrated into the country’s payment terminal infrastructure gives it a significant chance to succeed as many of the barriers to use over payment cards have been removed.
Overview by Tristan Hugo-Webb, Associate Director, Global Payments Advisory Service at Mercator Advisory Group
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