UAE banks seek to reduce cash usage with new app

Klip allows the cashless spending, transfer and storage of money

Emirates Digital Wallet, a platform backed by 16 of the UAE’s top banks, has unveiled a new app for the country’s residents designed to reduce the use of physical notes and coins.

Klip allows the cashless spending, transfer and storage of money for anyone living and working in the country, according to the announcement.

It aims to replace cash in the day-to-day economy and provide digital transaction security for those who do not have bank accounts.

“There is a new cashless payment system launched almost every week somewhere in the world, but none of them seriously aim to remove the use of cash throughout the economy, none of them have the buy-in of the leading national banks, and none have the strong backing of government,” said Emirate Digital Wallet general manager Maki Vekinis.

The app is backed by a new website providing audio and visual guides for its usage.

Emirates Digital Wallet said the app was expected to enhance the lives of residents, shops and businesses in the country.

“It will provide a strong boost to the UAE’s effort to build an inclusive digital payments ecosystem that will benefit all stakeholders including consumers, businesses and banks, and set the path for the country’s transition to a cashless future,” said chairman of the UAE Banks Federation, HE Abdulaziz Al Ghurair.

Earlier this week, Al Ghurair’s bank Mashreq announced plans to cut branches as part of a focus on digital banking.

The downsizing will translate into a reduction of 15 to 20 per cent of the bank’s staff in retail services, including employees working at branches and also back office personnel, he said.

Read: Dubai’s Mashreq to cut branches as it shifts towards digital banking