Payit, the New Digital Payment Solution, Brings Financial Revolution in the United Arab Emirates (UAE)
United Arab Emirates bank, First Abu Dhabi Bank (FAB), launched the Payit digital asset wallet earlier on Tuesday much to the delight of users of the financial institution.
A report from Gulf News, a technological news website in the region confirms a partnership between FAB and MoneyGram to improve the cash transfer across countries while reducing the fees to a minimum.
Owing to the recent 10% acquisition of the remittance agent by Ripple Inc. Payit payment systems are built on xRapid technology.
MoneyGram partners with FAB's Payit payment service (Image: Shutterstock)
There is an increasing fear that the blockchain space is chocking up due to either the lack of stable regulations or the regulators killing innovations. Regulation is a hot topic in the world currently as people become more aware of the technology and a substantial capital increase in the past few years.
The world has seen several waves of technological developments with governments accepting the benefits of technological progress to improve their peoples’ lifestyles. Nonetheless, blockchain technology is offering a greater headache as it threatens the very formation of centralized governments and their monopoly over the financial system.
UAE Government Aims to Improve Digital Payment Adoption Rates
Proactive regulation measures have been put in place by the government of UAE as a key driver in innovation and improving overall crypto services to the citizens.
The adoption of digital payment systems has benefited from the measures taken by the legislation and regulatory bodies to ensure increased public participation with the systems.
The First Bank of Abu Dhabi (FAB) launches Payit (Image: FAB)
Having the regulators in UAE push for the growth of Payit and adoption of digital payments in one of the countries with the highest rates of smartphone penetration. The official slogan for Payit – “Anything cash can do, it can do better” – is a direct call to the 75%+ citizens who hold cash to switch to digital payment systems.
“Payit aims to eliminate cash and change the way you pay in the UAE. It's a mobile wallet app that makes paying anyone anywhere an absolute breeze. So you never have to worry about carrying cash again.” – Payit official website.
Notwithstanding, the government has transformed the digital payments landscape through initiatives such as the Wage Protection System (WPS) and UAE Pass as well as leveraging the blockchain to maintain records and introduce Value Added Tax (VAT) on items.
Penetrating the Cash Market
While digital payments present a favorable, cashless way of making payments across various shops and retail stores, merchants still prefer cash due to the low costs associated with it.
In a solution to this, the government is working with banks to ensure the costs of transfers are reduced to a minimum to promote fast and efficient digital payments across the country. Anyone with a valid Emirates ID can register on the Payit platform with only a smartphone and an internet connection.
This helps to promote financial inclusion as users can now surpass the tedious bank registration processes and still transfer cash across the globe. This marks a significant achievement for both the banks and cryptocurrencies as a whole, as they continue their quest for global adoption.