A Virtual Payment Solution Business offers electronic payment services through digital platforms, enabling individuals and businesses to make transactions without physical cash. It involves the use of digital wallets, online payment gateways, and mobile payment apps to securely process payments. These solutions provide convenience, speed, and security for online shopping, bill payments, money transfers, and other financial transactions. Virtual payment solution businesses may also offer services like transaction monitoring and fraud prevention to ensure smooth and secure payment experiences for their users.
While UAE permits business activity Digital Wallet for Electronic Payments (6419.97), it is not available for selection in Meydan Free Zone.
Digital Wallet for Electronic Payments (6419.97)*: This involves providing a secure digital platform or application where users can store their financial information and make electronic transactions. It falls under the category of Virtual Payment Solution Business, which encompasses services that enable individuals and businesses to make electronic payments without physical cash or traditional payment methods. Digital wallets offer a convenient and secure way for users to manage their payment information and conduct transactions online or through mobile devices.
However, it’s important to note that this business activity differs from traditional monetary institutions such as banks, credit unions, and savings banks. While those institutions engage in deposit-taking, credit lending, and similar activities, the focus of this business is on facilitating electronic transactions and providing a user-friendly payment experience. Digital wallets do not engage in direct deposit-taking or lending of funds but rather act as an intermediary platform for users to securely store and manage their payment information.
- Third-party Approval (PRE): Before obtaining a license from respective authority, it’s necessary to obtain third-party approval from the Central Bank of the UAE.
- Filing of Economic Substance Return: Business activity 6419.97 must meet this requirement.
- Anti-Money Laundering Compliance: Business activity 6419.97 is exempt from this requirement.
This activity is not available for selection in Meydan Free Zone.