Dubai- As the latest technology of electronic methods of payment rocks the banking sector worldwide, 16 U.A.E banks have officially signed a deal on implementing the m-wallet (mobile wallet) service.

The signing of memorandum of understanding “marks an important milestone in the development of the project, and essentially signals the beginning of the implementation stage”, said the U.A.E Banks Federation in a statement.

The technology sets aside the traditional methods of payment and allows an easier and more modern way for users to carryout transactions and transfers using none else but their pocket-sized everyday smartphone.

The platform has been developed with support of the U.A.E Banks Federation through a committee that represents the 16 partner banks. It will be regulated by the Central Bank of the U.A.E.

Implementing the m-wallet comes in line with the U.A.E Smart Government initiative announced in 2013.

U.A.E Banks Federation had announced the m-wallet system in 2014. However the system was later designed in 2015.

According to the federation, one of the project’s objectives is to aid the “unbanked” segment of the U.A.E population to access to basic financial services such as receiving funds or making payments. A future phase will see m-Wallet services offered to U.A.E visitors.

U.A.E Bank Federation chairman Abdulaziz Al Ghurair said that “the creation of this platform is a global first being fully supported by the banking sector in U.A.E, and its unique features will enable it to provide a vital path towards a future cashless payments and cash free environment in the U.A.E.”

“It is an essential and integral building block of the Smart Government initiative and will give the UAE a head start in transforming its economy for the benefit of residents here.”

“We set out to build a system to revolutionize the way payments are made in the U.A.E, and we have succeeded in meeting all of our objectives,” said Al Ghurair.

“The Central Bank has been very supportive through helping us ensure that the m-Wallet’s structure meets their regulatory requirements, and the UAE Telecommunications Regulatory Authority has also played an essential role in making sure that the system meets the required standards for the UAE’s mobile operating environment.”