Operating as a Payment Service Provider in the UAE requires authorization from the Central Bank of the UAE. The licensing framework has been modernized to accommodate fintech innovation while maintaining robust consumer protection standards.
The UAE PSP Framework
The Central Bank's Retail Payment Services and Card Schemes Regulation establishes the licensing framework for PSPs. This covers payment account services, payment instrument issuance, money remittance, and payment initiation services.
License Categories
The framework defines several PSP categories. Payment Account Providers can hold customer funds. Payment Token Service Providers facilitate digital payments. Retail Payment System Operators manage payment infrastructure. Each category has distinct requirements.
Capital and Compliance Requirements
Capital requirements vary by category and range from AED 5 million for basic PSP services to significantly higher amounts for payment system operators. Robust AML programs, cybersecurity measures, and consumer protection policies are mandatory.
Application Process
The Central Bank application involves detailed business plans, technology assessments, compliance framework documentation, and fit-and-proper evaluations of management. Processing times vary but typically span six to twelve months.
Strategic Value
A UAE PSP license opens doors across the Gulf. It enables direct banking relationships, merchant acquiring capabilities, and the ability to process payments without relying on third-party processors. We help fintechs navigate the full licensing journey.