Expats residing in the UAE will soon have the convenience of sending money back home through a unified app platform that allows transactions from multiple bank accounts. This development is expected to streamline and enhance the current remittance process for the UAE’s vast expatriate population.
Integrating Banks and Exchange Houses
The Foreign Exchange and Remittance Group (Ferg), an organization comprising various companies engaged in money exchange and remittances, is preparing for the implementation of an innovative Internal Payment System (IPP). Adeeb Ahamed, Vice-Chairman of Ferg, revealed this upcoming feature in a discussion during Techno Meet 23.
The IPP, currently not in operation, will provide a link between exchange houses and the payment system, allowing them to withdraw funds from multiple bank accounts or wallets based on customer preferences.
“This internal payment system by the Central Bank will facilitate the withdrawal of funds from various sources, eliminating the need for customers to visit each bank’s website to transfer funds,” stated Ahamed, who also serves as the Managing Director of LuLu Financial Holdings, the operator of LuLu Exchange.
A Boost to the Remittance Sector
The UAE houses a significant number of expatriates who send billions of dirhams back to their families every month. These remittances are primarily directed towards Asian, Middle Eastern, and African countries. Currently, only about 11 percent of these remittances are facilitated through digital channels.
With the implementation of the IPP, slated to be operational by September, the internal payment ecosystem is expected to witness a significant boost. Ahamed believes that most countries in the region have already established similar systems, placing the UAE on the path to robust digital remittance solutions.
Imad Ul Malik, CEO of Sharaf Exchange, views the IPP as a transformative move towards providing a seamless customer experience. He stated, “With IPP, you will just add a bank account number, and the money will be automatically pulled.”
Summary
- The UAE is introducing the Internal Payment Platform (IPP), allowing expats to remit money through mobile apps from multiple bank accounts.
- The platform, expected to be live by September, will facilitate instant fund transfers.
- This move aims to enhance the convenience of remittances for expats, who currently send billions of dirhams to their home countries every month.
- Currently, only 11% of total remittances go through digital channels. The new platform is expected to boost digital remittances significantly.
- Exchange houses and banks will be interconnected through the IPP, providing a seamless and efficient remittance experience for customers.
