This initiative aims to bolster the UAE’s digital payments ecosystem by enabling banks and financial institutions to process and settle domestic Visa transactions within the country. For both consumers and businesses, this could lead to quicker transaction processing and possibly lower costs associated with cross-border settlements.
Under the NNSS framework, a selected settlement agent—usually a licensed bank—manages fund transfers among participating institutions for domestic transactions in accordance with Visa’s network guidelines.
With Emirates NBD stepping into this role, local settlement activities will occur in dirhams, diminishing dependence on global settlement systems.
Experts from both organizations have indicated that this collaboration aligns with wider efforts to enhance digital payment usage and improve efficiency within the financial system.
The agreement was formally established at Emirates NBD’s headquarters in Dubai.
From a personal finance standpoint, settling in local currency can offer indirect advantages for users. Quicker clearing cycles may enhance transaction visibility and reduce delays for refunds or merchant settlements.
Additionally, reduced processing costs at the system level could enable more competitive fees over time, though end-user pricing still relies on banks and payment providers.
The partnership is also anticipated to bolster system resilience by limiting reliance on global networks for domestic transactions, which is especially important during times of global market turmoil, as localized processing can ensure continuity.
Moreover, the NNSS framework provides financial institutions with the flexibility to automate and manage settlement responsibilities according to local needs, potentially enhancing operational efficiency for banks and payment companies operating in the UAE.
