NymCard, the leading embedded finance platform in the MENA region (Middle East and North Africa), has announced that it has been officially licensed to provide Open Finance services to consumers.
The mentioned licensing was carried out in accordance with the regulatory framework of the central bank of the United Arab Emirates in relation to the Open Finance sector.
In a press release published by the company, it was noted that NymCard is becoming one of the first brands in the UAE to integrate the functions of regulated payment transactions into a broader financial infrastructure through a single modular platform.
As for a more detailed understanding of what regulated payments are, within the framework of the relevant practice of transactions in the financial environment, there is a guarantee that each process will comply with the implementation framework, which clearly coincides with the requirements established by the authorities of a particular country. This means that the activities of payment systems, both in the context of what is characterized by such a definition as everyday transactions with standard bank cards, and on the scale of actions with advanced digital wallets, will, among other things, be focused on the purpose of ensuring the protection of users’ personal information. Also, within the framework of relevant practice, special attention is paid to the issues of transaction security and reducing the risks of financial fraud. In fact, in this case, the concept of technological functionality means a safety net, which guarantees consumers that characteristics such as transparency, accountability, and trust throughout the payment process will be relevant circumstances related to the space of real existence, rather than something that is guaranteed but manifests itself periodically or incompletely.
Among the main advantages of regulated payments, high-priority attention should be paid to increased security and data protection. In this case, maximum compliance with standards such as PCI DSS, GDPR, and PSD2 is ensured. Payment providers provide consumers with encryption and reliable protection of confidential data. In a strictly practical sense, this means minimizing the risk of breaches and cyberattacks. Personal and financial data remain within the guaranteed security space.
Another advantage of transactions classified as regulated payments is the special attention paid by functional systems to countering fraud and reducing the risks associated with this threat. Robust regulations require that the mentioned systems must have tools designed to detect fraudulent activity and combat money laundering processes. In this case, it guarantees the protection of both consumers and institutions from incidents with long-term, large-scale, and sensitive consequences. The corresponding wording means that the mentioned incidents can mean huge financial losses, which can have, among other things, a fundamental impact on the condition of the affected party in a material sense, and can be a critical blow to the reputation of a brand that is unlucky enough to become a victim of a fraudulent attack.
The practice of regulated payments also generates a high level of trust. This characteristic is equally relevant for both consumers and businesses. In a regulated environment, all processes, such as everyday purchases and large transactions, are carried out within the framework of transparent algorithms. Consumers feel safer knowing that all stages of their financial activities are strictly controlled. Businesses benefit from reducing legal and financial risks in the context of engaging in relevant practices.
Another advantage of regulated payments is what can be described as real-time efficiency. Many regulated functional spaces support real-time payment systems. For consumers, this means the ability to quickly move funds between banks, individuals, and businesses. Appropriate efficiency is an advantage in terms of working capital management, contributes to increased liquidity, and is a factor enabling governments to better manage public spending and refunds.
In the context of the positive features of regulated payments, it is worth noting that transactions in this category are a source of innovation in a secure ecosystem. Clear regulatory guidelines empower fintech companies and traditional financial institutions to innovate responsibly. In this case, they can implement new digital products and services, being confident that their solutions comply with global security and compliance standards.
On a broader scale, regulated payments support the entire financial ecosystem. These transactions contribute to economic stability by formalizing the payment process, reducing the volume of the shadow economy, and ensuring the immutability of tax revenues. An appropriately structured environment enhances consumer protection. This environment also generates a competitive space that encourages continuous innovation. The plane is being formed, in which both startups and established players have access to the possibility of safe development.
As we have reported earlier, Magnolia Bank Launches Fintech Solution LiaFi.
