It seems a long time ago now, but when the UAE Central Bank and the UAE national banks started talking in 2014 about how to help reduce the use of physical cash in the UAE, we collectively put our fingers on something vital not only for the UAE, but potentially for the world at large.
Working with the UAE Banks Federation, we quickly found common ground among the 16 member banks which ultimately led to the development of klip, the UAE's Digital Cash Platform.
The objective of klip is truly a win-win for all of the parties involved. For the Central Bank it will help to reduce the cost of operating a cash-based economy, in which still over 90% of payments by volume are in physical cash. For the stakeholder banks it provides a significant opportunity to reduce the cost of managing cash from maintenance and distribution through ATMs and branches to security and manpower. And for customers it is an attractive and logical way of reducing their reliance on cash for a better digital alternative.
Quite apart from its applicability to lifestyle now driven by the smartphone, klip brings an indispensable way of allowing access to the financial system for all unbanked adults in the UAE.
We truly believe klip may help achieve the eventual demise of physical cash.
Chief Executive Officer
Emirates Digital Wallet