Companies wanting to offer UAE payment services — money transfer, e-wallets, payment processing, or stored value facilities — must obtain a Payment Service Provider (PSP) licence from the Central Bank of UAE (CBUAE). Here is a complete guide.
CBUAE Payment Services Regulatory Framework
The CBUAE’s Retail Payment Services and Card Schemes Regulation (RPSC, 2021) regulates all UAE payment services. Regulated payment activities include: Stored Value Facilities (e-wallets, prepaid cards), Payment Account Services (holding funds for payment purposes), Card Issuing and Acquiring, Money Remittance and Transfer, Payment Aggregation (allowing third-party merchants to accept payments through one platform), and Currency Exchange (Hawala/exchange house — separate licence). Any UAE entity offering any of these activities must hold a valid CBUAE payment licence.
CBUAE Payment Licence Categories
Category 1 (Stored Value Facility — Large Scale): E-wallets, prepaid payment products with balances up to AED 50,000/wallet. Minimum capital: AED 50M. Category 2 (Stored Value Facility — Small Scale): Lower-balance e-wallets (up to AED 5,000/wallet). Minimum capital: AED 2M. Category 3 (Payment Services — Non-Stored Value): Payment processing, acquiring, and remittance without holding customer balances. Minimum capital: AED 5M–10M depending on activity scope.
CBUAE Application Process
The CBUAE payment licence application is intensive — expect 6–18 months from application to approval. Key requirements: detailed technology architecture documentation, cybersecurity audit by a CBUAE-approved assessor, AML/CFT policy approved by CBUAE, independent directors on the board, UAE-based compliance officer and MLRO, and prescribed minimum capital fully paid up before licence grant.