Dubai: The UAE Central Bank has begun trialling a biometric payments system that allows users to complete transactions using facial and palm recognition, marking a regional first and underscoring the country’s push towards a digital-first financial ecosystem.
The initiative, developed under the regulator’s Sandbox Programme and Innovation Hub at the Emirates Institute of Finance, is currently in a proof-of-concept phase. It is being demonstrated at the Dubai Land Department and aims to enable secure, seamless payments without the need for physical cards, cash or mobile devices.
The project is supported by Dubai-based payments solutions provider Network International, in partnership with US biometrics company PopID. Officials say the technology is designed to enhance both security and convenience, while expanding access to digital payment infrastructure.
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According to the Central Bank, biometric authentication can reduce dependence on traditional payment tools and lower risks associated with lost cards, stolen devices and identity fraud. Transactions are authorised through the verification of unique biological markers, allowing users to pay with a simple scan of their face or palm.
Senior officials described the pilot as a strategic step in modernising the country’s payments architecture. The move aligns with the UAE’s broader digital transformation agenda and its ambition to position itself as a global hub for financial innovation.
The trial also comes amid a regional push to improve financial inclusion. World Bank data shows that only about half of adults in the Middle East currently have access to a formal financial account, the lowest rate globally. Regulators believe digital payment solutions, particularly those that do not rely on smartphones or bank cards, could help bridge this gap by reaching underserved populations.
Industry experts say biometric payments could play a critical role in reducing friction at points of sale, especially in high-volume public services and retail environments. By eliminating the need for physical credentials, transactions can be completed more quickly while maintaining high security standards.
Network International, which operates payments infrastructure across the Middle East and Africa, said biometric authentication represents the next phase of digital commerce. The company has been working with regional regulators to integrate advanced security features into everyday payment systems, including tokenisation and real-time fraud monitoring.
The Central Bank has increasingly relied on its regulatory sandbox to test emerging technologies in a controlled environment before wider rollout. Previous sandbox initiatives have focused on open banking, digital wallets and cross-border payments, allowing fintech firms and established players to collaborate under regulatory oversight.
The biometric payments pilot is also closely linked to the Central Bank’s plans for the Digital Dirham — a central bank digital currency that is expected to enable instant settlements and broader accessibility while retaining the trust associated with sovereign-backed money. Officials have indicated that future payment ecosystems could integrate biometric authentication with digital currency infrastructure.
In recent months, the regulator has expanded its mandate to strengthen financial stability and consumer protection, backed by updated legislation that reinforces its independence and supervisory powers. The law also places greater emphasis on innovation, inclusion and the adoption of advanced financial technologies across the banking sector.
While the current trial remains limited in scope, officials said insights from the proof-of-concept phase will inform decisions on scalability, regulatory safeguards and potential public rollout. Data protection, user consent and cybersecurity frameworks are expected to be central to any wider implementation.
Analysts note that biometric payments are gaining traction globally, with pilots underway in parts of the US, Europe and Asia. However, large-scale adoption will depend on public trust, robust governance standards and interoperability with existing payment networks.
For the UAE, the trial reflects a broader strategy of leveraging cutting-edge technologies to modernise public services and financial infrastructure. As digital payments continue to evolve, regulators and industry players alike are betting that biometrics could become a cornerstone of the next generation of secure, cashless transactions.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
