UAE launches monthly rent payment platform for residents, citizens
17 March 2023, Arabian Business
Residents and citizens can access the platform via the UAEPASS.
The UAE Central Bank (CBUAE) has announced the nation’s first paperless Direct Debit Marketplace.
The new marketplace will provide payers and merchants with an all-in-one solution to make regular monthly payments, UAE-based fintech company, Direct Debit System said in an emailed statement.
“We would like to announce that Direct Debit Marketplace (DDMP) will enact the role of a ‘special’ sponsoring entity, and will be included as a direct participant in UAEDDS,” the statement said, citing a communication to banks and financial institutions in the UAE.
The marketplace, which is developed by Direct Debit System, will provide UAE residents and citizens “a safe, legal alternative to make all their recurring payments in one place.”
Residents and citizens can access the platform via the UAEPASS.
All payments facilitated through the platform will be regulated by the CBUAE, the statement said. Moreover, the system is DESC (Dubai Electronic Security Center) compliant, so that user data is positioned safely behind government firewalls and systems.
“We are delighted to be given the official go ahead and are grateful to central bank and its leadership for allowing us to be part of its digital payments transformation agenda for the country. Since our soft launch in September, we have received incredible feedback from businesses who want to move to the paperless and digital transformation space. Our first merchant is set to accept its first direct debit payment in March 2023,” Direct Debit System founder and chief executive officer Ummair Butt said.
Through the new marketplace, direct debit is expected to help over “96 percent of monthly salaried people to stay out of debt and budget their salaries better, by paying monthly and avoiding quarterly bulk cheques.”
Users can also easily settle recurring expenses such as school fees, insurance, rent, gym memberships, and any other subscription-based expenses, the statement said.
“It is our belief that because direct debit is an instrument to execute a contract of payment, the merchant must have control over terms, therefore initiate the DD payment process and retain the control. DDMP offers exactly that,” Direct Debit System’s Butt said.
The new marketplace is “agnostic” in nature, which means it will not affect a merchant’s relationship with their banking services provider.
“Marketplace provides added advantage to real estate companies by providing control over tenants ability to cancel direct debit during the period of tenancy period,” the statement said, adding that it has a fixed-fee structure.
This will be beneficial for merchants using cheques or credit cards to accept payments.
DDMP will also issue “a digital bounced DD report” for merchants who wish to take the bounced payment matter to UAE Courts.
“The marketplace also offers digital reconciliations for all direct debit payments, creating cost-time savings for participating merchants. Marketplace provides a sandbox environment to any merchant who wishes to test standardised APIs and integrate DD module into their accounting system or CRM,” the statement added.
