Following discussions between the UAE Central Bank and UAE national banks, a project was initiated in 2014 under the auspices of the UAE Banks Federation to identify a methodology to reduce the volume of cash transactions the UAE economy.
The UAE Banks Federation hosted a working group from 2014-2016 to identify how this objective might be achieved, out of which emerged the Emirates Digital Wallet. EDW is owned by 15 national banks and manages and operates klip, an app which provides access to a platform created to allow payments to be made digitally within the UAE regardless of whether the user has a bank account or not.
klip paves the way for cashless spending, remittance and storage of money for anyone holding a SIM card and resident in the UAE. It combines best payments practice from around the world with locally sourced innovation to provide a unique solution tuned to the specific needs and characteristics of the UAE.
The UAE Central Bank published rules governing stored value and digital payments in January 2017 and EDW operates in compliance with these regulations.
The aims of EDW are to:
To support the UAE government's strategy to drive digital transformation across the economy and society.
To realize the Central Bank's desire to reduce and ultimately remove cash in circulation in the UAE economy so as to make it more efficient and to minimize fraud and the risks inherent in the use of cash.
Thirdly EDW reflects the government's desire for better financial inclusion primarily for the unbanked in the UAE economy.
The stakeholders of EDW are FAB, ADCB, ADIB, Mashreq Bank, DIB, CBD, RAK Bank, Al Hilal Bank, SIB, Al Masraf, Bank of Sharjah, Invest Bank, UAB, NBF, and NBQ