In order to make it easier for people to make regular payments like rent and school fees, the UAE-based fintech business Direct Debit System has developed an all-in-one platform called Direct Debit Marketplace. First paperless direct debit marketplace in the UAE, this platform.
A straightforward and handy all-in-one solution for managing recurring payments is offered by the Direct Debit Marketplace to payers and merchants. The platform makes it possible to pay for insurance, gym memberships, and any other subscription-based services in addition to the ones already stated.
The Direct Debit Marketplace platform is open to companies that accept recurring payments in any industry. As a result, it has no impact on the connection between merchants and their bank services provider.
Since direct debits made possible by the platform are connected with and subject to regulation by the UAE Central Bank, it provides all users with peace of mind. Within their contractually agreed-upon parameters, payers also gain from cancellation control.
An initiative started by the UAE Ministry of Finance to foster national innovation, Direct Debit is a graduate of the MBRIF Innovation Accelerator program.
The MBRIF representative and chief innovation officer at the Ministry of Finance, Fatima Al Naqbi, commented on the launch, saying: “We are delighted to see the launch of Direct Debit, the latest triumph from our Innovation Accelerator program, where we support budding firms that innovate and disrupt markets with technology.
The perfect example is direct debit, which offers merchants and payers in the UAE a market space where they can conduct recurring payments effectively and affordably. We at MBRIF will keep working to assist the UAE’s aim of fostering innovation while fostering national expansion, diversity, and excellence.
The creator and CEO of Direct Debit System, Ummair Butt, stated that writing four checks for rent or three for school fees was typical in the United Arab Emirates. Residents and citizens may use our Direct Debit Marketplace app to make all of their recurring payments in one location, ideally monthly, in a secure and legal manner.
Over 96% of monthly paid persons may be able to keep in control of their finances and stay out of debt thanks to Direct Debit Marketplace’s monthly payments and avoidance of quarterly or biennial bulk payments, claimed Butt. This is crucial given that more than half of their income is spent on housing and educational costs. Our goal is to promote the use of monthly direct debit payments for all expensive and inexpensive purchases at no cost to consumers and extremely minimal cost to merchants.
According to research, letting clients pay with their incomings (salaries) lowers bounce payments by 41%.
For businesses that presently only accept cash, checks, or credit cards, it is also incredibly cost-effective. For instance, a normal credit card payment would require that businesses pay 1% to 3% of the whole transaction amount. With Direct Debit Marketplace, there is no need to save and process checks because the charge is a constant independent of the credit card or bank account.
The Marketplace enables digital reconciliations for all direct debit payments, which allows participating businesses to save a tonne of money, time, and resources because their current personnel can be retrained to accommodate company growth.
Retailers in the UAE may easily use the cutting-edge dashboard or integrate Direct Debit Marketplace with their accounting program.
The platform is handled by the merchant, therefore a payer may only use Direct Debit if the biller or merchant first makes an offer. Before completing a direct debit mandate, the app prompts payers to accept an offer of payment electronically.
UAE PASS, the country of the UAE’s secure digital identification, is connected with the platform. The only way to set up a one-time direct debit payment is through UAEPASS, which completely eliminates paper from the process. Additionally, users must have “signature qualified status” in order to sign a Direct Debit mandate, which ups the level of security, and they must have the UAEPASS app downloaded on their smartphones.
The technology is housed at Dubai’s Data Center, known as Dubai Pulse, and Butt continued, “Data security is very essential to us. Due to the data being carefully stored behind the best-in-the-world government firewalls and systems, we are now DESC (Dubai Electronic Security Center) certified. Since the UAE’s Direct Debit Marketplace is a Decretal System, national courts will recognize it as legal. The law now treats both new paperless digital direct debits and obsolete paper-based redundant checks equally as a result of recent revisions to the legislation governing cheques.
The newly launched service is sponsored by the National Bank of Fujairah (NBF).In response to this news, Vince Cook, CEO of NBF, stated: “The bank is constantly looking at how emerging technologies may be used to improve the services offered in the UAE market, and we are particularly thrilled to be cooperating with the Direct Debit Marketplace. The UAE banking system has much to gain from the adoption of direct debit payments. It greatly speeds up and simplifies the setup and management of recurring monthly payments for both payers and merchants across a variety of business sectors.
Prior to the launch of the new app, “the proposed direct debit architecture places operational integrity and data security at its core, essential concerns for NBF,” explained Cook.
Direct Debit Marketplace is presently accepting applications from merchants and is scheduled to be fully operational in the fourth quarter of 2022. Given that it is a legal system, all Direct Debit Marketplace participants must go through an unbiased KYC (Know Your Customer) process that is handled by Crif Gulf, the UAE representative of Dun & Bradstreet.