The UAE Central Bank has introduced a Middle East-first biometric payment solution that will allow users to conduct transactions using facial and palm recognition technologies.
The initiative, developed through the regulator's Sandbox Programme and Innovation Hub at the Emirates Institute of Finance, aims to provide secure and inclusive payment solutions without the use of physical tools such as cards or mobile devices, the central bank said on Wednesday.
The project is backed by Dubai-based payments solutions provider Network International and US biometrics company PopID. It is in its proof-of-concept phase and being demonstrated at the Dubai Land Department.
The move reaffirms the regulator's “commitment to driving innovation and supporting the nation’s digital transformation”, said Saif Al Dhaheri, assistant governor for banking operations and support services at the UAE Central Bank.
“The introduction of biometric payment solutions represents a strategic step to delivering more secure and seamless payment experiences, setting new benchmarks for trust and convenience in financial transactions,” Mr Al Dhaheri said, adding that the move aligns with the UAE’s vision of building an innovation-driven digital economy.
The UAE continues to roll out initiatives leveraging the latest technologies to boost its operations in both the public and private sector, as it takes a leadership role in the future economy.
One of the key areas of focus is finance: inclusion in the sector remains a challenge for Arab countries in the Middle East, with only about 50 per cent of adults in the region having a financial account, the lowest global score in financial account ownership, data from the World Bank shows.
Rapid developments are poised to change that, especially as advancements in innovations are providing consumers more channels to access banking, especially on mobile devices, in addition to providing the newest security measures to counter fraud and misuse.
“Biometric payments represent the next frontier in digital commerce, combining convenience, security and efficiency … as we advance the UAE’s position as a global hub for financial innovation and a digital-first economy,” said Murat Cagri Suzer, group chief executive of Network International.
In October, President Sheikh Mohamed issued a new law that further enhanced the role of the UAE Central Bank to boost financial stability and protect its constituents.
The legislation strengthens the central bank’s independence and vital role in ensuring financial and monetary stability, anchored by seven points that include a mandate for all financial institutions to provide banking services to everyone, in line with digital transformation and financial service innovation efforts.
The central bank is also poised to launch Digital Dirham, a digital version of the UAE’s national currency, enabling instant settlements and widespread accessibility with the security and trust of traditional central bank-backed money. It is also working on developing stablecoins.
