This initiative aims to enhance the UAE’s digital payments ecosystem by enabling banks and financial institutions to clear and settle local Visa transactions domestically. For consumers and businesses alike, this may result in quicker transaction processing times and possibly lower costs associated with cross-border settlements.
In the NNSS framework, a chosen settlement agent—generally a licensed bank—facilitates fund transfers among participating institutions for domestic transactions in accordance with Visa’s network guidelines.
With Emirates NBD assuming this role, settlement processes will be conducted in dirhams, decreasing reliance on international settlement infrastructures. Experts from both organizations indicated that this collaboration supports a broader initiative to enhance digital payment adoption and efficiency within the financial landscape.
The agreement was formalized at Emirates NBD’s headquarters in Dubai.
From a personal finance perspective, settling in the local currency can offer indirect advantages for users. Accelerated clearing times may enhance transaction visibility and minimize delays in refunds or settlements with merchants.
Reduced processing costs at the systemic level could also lead to more competitive fees in the long run, although final pricing for end-users relies on banks and payment service providers.
This partnership is also anticipated to bolster system resilience by reducing dependence on global networks for local transactions. This aspect is particularly significant during times of global market volatility, where localized processing can ensure continuity.
Furthermore, the NNSS framework provides financial institutions with the flexibility to automate and manage settlement obligations based on local needs, potentially enhancing operational efficiency for banks and payment organizations in the UAE.
