Mastercard announced this week a new strategic partnership with Dubai Islamic Bank (DIB) to launch cross-border payment services for both peer-to-peer (P2P) and business-to-business (B2B) fund transfers. The collaboration highlights the United Arab Emirates’ determination to transform its payments ecosystems, both domestically and internationally.
The new collaboration with DIB leverages Mastercard Cross-Border Services to enable the bank to provide real-time remittances through its digital channels across more than 40 countries worldwide. All told, Mastercard Cross-Border Services facilitate the movement of funds to any end point across over 140 countries.
The announcement comes when the UAE has been more focused lately on domestic payment ecosystems. The UAE Central Bank has put forth a National Payments Systems Strategy that would enhance the existing payments architecture in the country, and ensure infrastructure is future-proof as the payments evolution continues.
But the growing fintech environment in Dubai has led to many international payment service providers elbowing their way into this market as well. In addition, there has been an increased focus from the UAE government around regulations for cross-border payments.
A Growing Presence in the UAE
It is within this landscape that Mastercard has also been growing its presence in the UAE. Just last week, First Abu Dhabi Bank announced it was working with Mastercard to launch its SlicePay card, powered by Mastercard’s Installments Program.
And in August, Mastercard established a global center for advanced AI and cyber technology in Dubai. Mastercard signed a memorandum of understanding with the UAE’s Artificial Intelligence, Digital Economy & Remote Work Applications Office to work together on increasing AI capabilities and readiness in the region. Mastercard described the focus of the effort as battling financial crime, securing the digital ecosystem, and driving inclusive growth in the UAE and beyond.
The memorandum of understanding also looked to establish a co-branded innovation hub in Dubai along with the Dubai Chamber of Digital Economy, intended to serve as a platform for cooperation in digital innovation and artificial intelligence technologies. The goal is to attract international technology companies, startups, and digital talent to Dubai, in partnership with government entities like the Dubai Digital Authority, Dubai Future Foundation, and Dubai Chamber of Commerce. Today’s announcement signals that we should expect Mastercard’s connections to such entities to continue to grow.