UAE, Philippines link payment systems to boost remittances
Central banks partner to improve remittances and expand fintech cooperation
Dubai: The UAE and the Philippines have moved to strengthen financial ties with a new agreement aimed at improving cross-border payments and expanding cooperation across fintech and Islamic finance.
The Central Bank of the UAE and the Bangko Sentral ng Pilipinas signed a memorandum of understanding that sets the groundwork for integrating instant payment platforms and improving transaction flows between the two countries.
The agreement is expected to benefit individuals and businesses, with a particular focus on remittances, which remain a key financial link between the UAE and the Philippines.
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Faster and more efficient payments
Both central banks will work towards enabling seamless cross-border transactions by connecting their payment infrastructure, with the option to link national card switches and financial messaging systems in the future.
The effort is designed to reduce processing times and improve efficiency, while strengthening interoperability between financial systems in both countries.
The agreement also includes collaboration on central bank digital currency development, with both sides set to exchange expertise on building platforms for individuals and institutions.
“This agreement marks a significant step toward building a more connected and innovative financial ecosystem between the UAE and the Philippines," said Khaled Mohamed Balama, Governor of the Central Bank of the UAE. "By leveraging advanced payment technologies and sharing expertise, we are laying the foundation for a new era of seamless integration and sustainable, innovation-led economic growth.”
Focus on remittances and fintech
The partnership places strong emphasis on improving remittance channels, a critical area for the large Filipino community in the UAE.
“This partnership supports the BSP’s push to digitalise payments and make cross-border transactions more efficient," said Dr Eli M. Remolona, Jr., Governor of the Bangko Sentral ng Pilipinas. "For Filipinos in the UAE, especially our overseas Filipino workers, this means better remittance channels and more efficient financial services for their families back home. We also see strong opportunities to collaborate in Islamic banking and finance as we work toward a sound and inclusive financial ecosystem.”
The agreement also opens the door to collaboration in areas such as open finance and digital assets, with both countries looking to build more connected financial systems.
Broader economic ties
Beyond payments, the memorandum signals a wider push to strengthen trade and economic cooperation between the UAE and the Philippines.
The focus on financial infrastructure, digital innovation and Islamic finance reflects growing alignment between the two markets, with both central banks looking to support more efficient capital flows and deeper economic links.
