Direct Debit System, has launched a first-of-its-kind paperless platform called Direct Debit Marketplace in the UAE on Monday, the fintech company announced in a statement.
The platform will allow payers and merchants to conduct recurring payments, such as school fees, insurance, rent, gym memberships, and any other subscription-based service.
Regulated by the UAE central bank, the platform is “bank agnostic,” which means that the user’s relationship with bankers will remain unaffected, the company said adding “payers also benefit from cancelation control, within their contractual terms of agreement.”
“Monthly payments and avoiding quarterly or bi-annual bulk payments means Direct Debit Marketplace can help over 96 percent of monthly salaried people to stay in control of their finances and out of debt. This is especially important knowing that rents and school fees account for more than 50 percent of their salaries. Our mission is to encourage a culture of monthly direct debit payments for all big or small ticket items at very low cost to merchants and free of charge for payers,” Direct Debit System’s founder and chief executive officer Ummair Butt said.
Butt added the platform provides residents and citizens with a safe, legal alternative to make all their recurring payments in one place as well.
“UAE-based merchants can easily connect Direct Debit Marketplace with their accounting software or use the state-of-the-art dashboard. The platform is merchant driven which means a payer can only make Direct Debit payments if the biller/merchant makes an offer first,” the statement said.
The app, which is integrated with UAEPASS, asks payers to digitally accept a payment offer before the signing process of a direct debit mandate begins, and is also sponsored by the National Bank of Fujairah (NBF).
Direct Debit is an Alumni of the MBRIF Innovation Accelerator programme, an initiative launched by the UAE Ministry of Finance to support nationwide innovation.
“Direct Debit is a perfect example, providing merchants and payers in the UAE with a marketplace where they can transact recurring payments efficiently at low cost. At MBRIF we will continue to align with the UAE’s vision to facilitate innovation and support growth, diversification and excellence in the country,” MBIRF representative and chief innovation officer at the Ministry of Finance Fatima Al Naqbi said.
The Direct Debit Marketplace is set to be fully operational during the fourth quarter of 2022 and is now accepting expressions of interest and applications from merchants.
The statement added: “As it is a legal system, all participating merchants of Direct Debit Marketplace must go through a mandatory KYC (Know Your Customer) process, carried out independently by Crif Gulf who represent Dun & Bradstreet in the UAE.”
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