Payment services licensing in the UAE

Rules as at 3 November 2026. Each statement carries its label and the section it comes from. The rules engine works out which route applies to your business; Clara, Candovio's AI assistant, gathers the facts.

Which regulator applies, and when

Onshore, serving the UAE mainland. The Central Bank of the UAE licenses retail payment services under the Retail Payment Services and Card Schemes Regulation. Rule RPSCS Art 1, 2 Marketing payment services to mainland retail customers in dirhams is for an onshore regulator only. Rule Federal Law 8/2004 Art 4(1)(b); RPSCS Art 2
In or from the DIFC. The DFSA licenses money services as Category 3D, or money transmission alone as Category 4. Rule DFSA PIB 3.6.2
In or from ADGM. The FSRA licenses money services as Category 3C. Rule FSRA PRU 1.3.5(a)(vi)
Payment tokens referenced to the dirham. Only the Central Bank licenses their issue. Rule PTSR Art 2(8), 6; VARA FRVA Rules I.B.4

Licence categories and base capital

Category	Activities	Base capital	Source
CBUAE Retail Payment Services, Category I	All nine payment services, including cross-border transfers and payment token services	AED 1.5m below AED 10m monthly average value; AED 3m at or above	Rule RPSCS Art 3, 6(1)
CBUAE Retail Payment Services, Category II	Account and instrument issuance, acquiring, aggregation, domestic and cross-border transfers	AED 1m; AED 2m	Rule RPSCS Art 3, 6(1)
CBUAE Retail Payment Services, Category III	As Category II without cross-border transfers	AED 500,000; AED 1m	Rule RPSCS Art 3(4), 6(1)
CBUAE Retail Payment Services, Category IV	Payment initiation and account information only	AED 100,000	Rule RPSCS Art 4(3), 6(1)
CBUAE Stored Value Facility	Any facility that stores customer value	AED 15m paid-up; capital funds of at least 5% of the float; bank guarantee at application	Rule SVF Regulation Art 7(1), 7(4), 7(10)
CBUAE Open Finance Provider	Data sharing; service initiation	AED 1m; capital funds the higher of AED 1m or wind-down cost	Rule Open Finance Regulation Art 6, 7, 9
CBUAE Card Scheme	Operating a card scheme	No capital figure; financial and operational resources	Rule RPSCS Art 18(1), 18(7)
CBUAE Dirham Payment Token Issuer	Issuing dirham payment tokens	AED 15m plus 0.5% of tokens outstanding	Rule PTSR Art 2(8), 6, 7, 13
CBUAE Payment Token Conversion, Custody and Transfer	Converting, holding and transferring payment tokens	AED 3m at AED 10m or more monthly average transfer value; AED 1.5m below	Rule PTSR Art 14, 15
DFSA Category 3D	Money services: payment accounts, payment transactions, payment instruments	USD 200,000	Rule DFSA PIB 3.6.2
DFSA Category 4, money transmission	Money transmission only	USD 140,000	Rule DFSA PIB 3.6.2
FSRA Category 3C, money services	Currency exchange, remittance, payment services, stored value	USD 250,000, then the highest of base, expenditure-based and variable capital	Rule FSRA PRU 1.3.5(a)(vi), 3.3.2, 3.6A.1, 3.6A.2

Key requirements

The Central Bank can require aggregate capital above the payment services floors. Rule RPSCS Art 7(2)
A Central Bank payment service provider's chief executive must be ordinarily resident, management must be based in the State, and it needs compliance, risk and internal audit functions. Rule RPSCS Art 1, 10(6)
It must audit its accounts and payment systems every year, keep records for five years and store data in the State. Rule RPSCS Art 10(7), 14(22)
Only Category IV providers must hold professional indemnity insurance under the RPSCS. Rule RPSCS Art 4(3), 10(14)
The payment services regulation publishes no application or annual fee. Rule RPSCS
An FSRA remitter's variable capital is 1.25% of the first USD 10m of monthly volume and 0.5% of the next USD 90m. Rule FSRA PRU 3.6A.1, 3.6A.2
The DFSA application fee is USD 15,000 for payment services and USD 25,000 for stored value. Rule DFSA FER 2.1.1, 3.2.1 DFSA money services providers do not need professional indemnity insurance. Rule DFSA PIB 6.1.1(c)

Application stages

Assessment. The assessment gives a provisional result in about ten minutes, reviewed by a person before it is released to you, and Candovio confirms the route with you on a call.
Application pack. The AI assistant drafts the business plan, policies and forms; Candovio checks every line; you approve it.
Submission and questions. We file the application and answer the regulator's questions from the same record.
Decision and conditions. The regulator decides, usually first in principle with conditions, and the licence follows once the conditions are met.

Published decision periods: 90 calendar days from a complete file for a card scheme Rule RPSCS Art 18(3) and 60 working days for an open finance provider. Rule Open Finance Regulation Art 12 None is published for retail payment services. Guidance CBUAE: Licensing The DFSA's 2016 target for Category 3 was 120 calendar days to an in-principle decision, not since reaffirmed. Guidance DFSA authorisation outreach, 2016 We do not promise timelines.

Questions

Do I need a Central Bank licence to offer payments to customers on the UAE mainland?

Yes, if you provide retail payment services onshore. The Central Bank licenses them under the RPSCS. Rule RPSCS Art 1, 2

What capital does a Category III payment services licence need?

AED 500,000 below AED 10m monthly average value, or AED 1m at or above it. The Central Bank can require more. Rule RPSCS Art 3(4), 6(1), 7(2)

Can a DIFC or ADGM payments firm deal in dirhams with mainland customers?

No. Financial free-zone firms may not deal in dirhams or take deposits from the State's markets. Rule Federal Law 8/2004 Art 4(1)(b)