e-Dirham revenue up by 41% during nine months, says MoF

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The UAE government’s e-Dirham system revenue maintained at Dh5.8 billion during the first nine months of 2016. During the first nine months, e-Dirham transactions rose by 20% year on year, to reach 15 million transactions when compared to the same period last year of around 12.5 million transactions, according to the Ministry of Finance (MoF).

The number of electronic services carried out through the e-Dirham system during Q1 to Q3 grew by 5.8% annually.

The system saw 28.9 million electronic services in the first nine months of 2016, as compared to 27.3 million transactions during the same period in 2015.

Around 2.25 million e-Dirham cards were issued by the end of September 2016, rising 41% when compared to the same period last year were 1.6 million e-Dirham cards were issued.

Since its launch in 2011, the number of electronic services carried out through the e-Dirham system by Ministry of Finance, in partnership with the National Bank of Abu Dhabi, has risen to 127 million, while the total payment value, settlement transactions and revenue collection is around Dh27.5 billion.

Performance figures

“The performance figures of the e-Dirham system, the national alternative to cash and a pioneering government initiative in the domain of smart payment systems, in the first nine months of this year are in line with the goals of the overall policy of the Ministry of Finance and the expected growth rates for government revenues,” said Saeed Rashid Al Yateem, Assistant Undersecretary of Resources and Budget Sector, MoF.

On our part, we strive to further enhance these performance figures by facilitating public access to the e-Dirham services and allowing clients to carry out payment transactions with the utmost comfort, ease and efficiency levels possible,” HE Al Yateem added.

Cashless payment and collection

The value and efficiency of the system would be increased by further digitisation of transactions and services, benefiting from the widespread usage of smartphones in the UAE. Better mobile payment options through smartphones were being made available to individuals as well as public and private sector companies in the UAE, according to Al Yateem.

e-Dirham is one of the advanced systems that support cashless payment and collection means that include online and smartphone platforms, aligning to the smart government goals. The e-Dirham system provides comprehensive solutions that allow individuals and companies to carry out payment and collection transactions quickly, efficiently, precisely and safely

Digital wallet

Following the launch of its new services, the e-Dirham system has served more than 5,000 government service fee payment transactions at federal ministries and local departments. These fees can be paid by using the e-Dirham digital wallet or by direct debit from a bank account.

During the Gitex Technology Week 2016, the MoF launched the eDebit and eDirect services in partnership with the National Bank of Abu Dhabi (NBAD) within the framework of its innovative initiatives. Both these services enable service fees payment and purchases through direct debit from the customers’ bank accounts, in addition to allowing users to top up eD-wallets through Internet banking.

Saif Ali Al Shehhi, Senior Managing Director of UAE Government Group and VVIP Clients, National Bank of Abu Dhabi, said: “The favourable performance of e-Dirham during the first nine months of 2016 reflects the consistent improvements in the system which has obtained the certification of compliance in Payment Card Industry Data Security Standard (PCI DSS). The certification was conferred for e-Dirham’s 11 components and for the security compliance of its Triple Data Encryption Standard (3DES), making its components and structures in accordance with international standards.

Moreover, Al Shehhi elaborated the system’s innovations to keep pace with the rapid changes in payment systems, given the importance of diversified payment options and the ease of carrying out transactions for promoting commercial activities.

About e-Dirham

Launched in 2001 by the UAE’s Ministry of Finance (MoF), the e-Dirham system is a cashless payment system that provides an official electronic payment platform for collection of revenues and service fees of government and semi-government institutions. The system adopts efficient, secure, state-of-the-art and world-class technologies; the first step in creating an e-government in the UAE.

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