New partnership with Emirates NBD ensures faster checkouts, enhanced reliability, and streamlined digital commerce for residents and businesses.
DUBAI: In a significant move to bolster the UAE’s digital economy, Visa has announced a structural shift in how card payments are processed within the country. By appointing Emirates NBD as its National Net Settlement Service (NNSS) agent, Visa will now settle domestic transactions locally in UAE Dirhams (AED), bypassing international routing systems.
This transition means that every time a resident taps, swipes, or clicks “buy” using a Visa card for a local purchase, the fund transfer between banks will occur within the UAE. This move aligns with the nation’s vision to create a more robust and self-reliant financial infrastructure.
Direct Benefits for Shoppers
For the everyday consumer, the local settlement brings three primary advantages:
- Accelerated Transactions: By eliminating the need for payments to travel through international networks, processing times are reduced. This results in near-instant confirmations for online shopping and in-store checkouts.
- Enhanced Reliability: Localizing the settlement process minimizes dependence on global systems, which can occasionally be vulnerable to time-zone delays or external cross-border disruptions. This ensures consistent payment performance for groceries, utilities, and subscriptions.
- Cost Efficiency: International processing often incurs hidden fees and currency conversion complexities. While consumers may not see an immediate price drop, localizing transactions helps banks reduce operational costs, which can curb the rise of banking charges in the long term.
Empowering the Business Community
The impact on the UAE’s retail and e-commerce sectors is equally profound. Faster settlement cycles mean businesses—especially high-volume online platforms—gain quicker access to their funds. This improved cash flow reduces uncertainty in payment cycles and strengthens the overall commercial ecosystem.
Ahmed Al Qassim, Group Head of Wholesale Banking at Emirates NBD, stated that the initiative would “streamline domestic settlement processes and bolster the nation’s digital ഹpayments infrastructure.”
Fadi Moukaddem, Visa’s Regional Head, emphasized that the primary goal is to facilitate seamless local currency settlements, ensuring the UAE’s payment landscape remains world-class. While the “behind-the-scenes” technology is changing, users can continue to use their cards exactly as they always have, simply enjoying a smoother and more reliable experience.
