Checkout.com received in-principle UAE approval for a Stored Value Facilities licence, moving closer to card issuing. The article explains the licensing stages, merchant funding model, market context and remaining requirements.
Checkout.com Receives In-Principle Approval for Card-Issuing Licence in July 2026
London-headquartered payments company Checkout.com announced on 27 July 2026 that the Central Bank of the United Arab Emirates had granted in-principle approval for its Stored Value Facilities licence application. The application concerns the addition of card-issuing capabilities in the UAE, enabling the company to offer physical or virtual card-related services to business merchants alongside its existing acquiring services.
This regulatory development does not mean that Checkout.com has already obtained formal authorisation to operate a card-issuing business. Under the licensing process published by the Central Bank of the UAE, in-principle approval only indicates that the applicant has completed the first-stage review and preliminarily met the regulator’s application requirements.
Second-Stage Requirements Must Still Be Completed
The Central Bank of the UAE explicitly states that in-principle approval must not be treated as final authorisation. An applicant may not conduct the relevant activities regulated by the central bank before receiving a formal licence. Even after granting in-principle approval, the regulator may still refuse to issue a full licence if the applicant fails to satisfy capital, governance, technology, risk management or other requirements.
The applicant submits information covering its corporate structure, business model, capital arrangements and compliance framework.
The Central Bank of the UAE completes its first-stage review and grants in-principle approval if the preliminary requirements are met.
The applicant completes the second-stage technical, operational and regulatory requirements specified in the in-principle approval letter.
Following its final assessment, the central bank decides whether to issue a formal licence and whether to impose additional operating conditions.
Under the general process published by the central bank, applicants are usually required to complete the conditions set out in the in-principle approval letter within one year of its issuance. However, this period does not constitute a commitment by the central bank to issue a licence within one year and cannot be used to infer the official launch date of Checkout.com’s card-issuing products.
(Sources: Checkout.com,Checkout.com strengthens UAE offering with in-principle Stored Value Facilities licence, published: 2026-07-27, in-principle approval and business scope sections; Central Bank of the UAE, Licensing, accessed as at: 2026-07-27, Phase One and Phase Two requirements sections.)
Proposed Licence Would Connect Acquiring Balances with Card-Issuing Services
Checkout.com plans to use the licence application to connect its existing acquiring services in the UAE with card-issuing services through a single payments platform. The company said business merchants would be able to select acquiring or issuing products separately, or use both services together, while managing fund flows through a unified data and account infrastructure.
Merchants May Reduce the Need to Pre-Fund Card Programmes
Under Checkout.com’s proposed product structure, merchants using acquiring, business account and issuing services together would be able to fund cards directly from their acquiring balances. This means that, subject to the relevant conditions, merchants may no longer need to transfer funds in advance from an external bank account into a card programme.
Acquiring: Checkout.com processes consumer payments on behalf of merchants and credits settlement funds to the relevant account.
Funds management: Merchants view and allocate eligible acquiring balances through a unified platform.
Card issuing: Merchants may use the relevant balances for corporate cards, supplier payment cards or other card programmes.
Operational impact: Consolidating acquiring and issuing data may reduce cross-platform reconciliation and fund-transfer steps.
The potential funding efficiencies described above reflect Checkout.com’s explanation of the proposed product functionality. The company has not yet disclosed pricing for its UAE card-issuing services, eligible card use cases, settlement cycles, netting arrangements or merchant eligibility requirements. The actual operational impact will therefore need to be assessed after the product receives approval and formally becomes available.
Checkout.com is not entering the UAE’s regulated payments market for the first time. On 23 May 2023, the company announced that it had obtained a Retail Payment Services licence from the Central Bank of the UAE, allowing it to provide merchant acquiring, payment aggregation and cross-border fund transfer services locally. The current Stored Value Facilities licence application represents an expansion of its product scope rather than its first entry into the UAE market.
On 4 February 2026, Equiti Group also announced a payments partnership with Checkout.com to provide clients with bank card deposits, card transfers, digital wallets and cross-border transaction support. The partnership indicates that Checkout.com’s existing UAE operations already serve corporate clients including fintech and trading services providers.
(Sources: Checkout.com,Checkout.com strengthens UAE offering with in-principle Stored Value Facilities licence, published: 2026-07-27, unified platform and acquiring balance funding sections; Checkout.com,Checkout.com becomes the first global payments platform to secure acquiring license from the UAE Central Bank, published: 2023-05-23, licence scope section; Equiti Group,Equiti Group partners with Checkout.com to expand worldwide payments, published: 2026-02-04, partnership service scope section.)
Progress of UAE Stored Value Facilities Licence Applications
The Central Bank of the UAE’s current regulatory framework for Stored Value Facilities is based on rules issued in November 2020. The framework regulates service providers that store customer funds or value and support payments, transfers, wallets and related products.
Checkout.com is currently only at the in-principle approval stage. By comparison, Revolut and Remitly obtained the relevant formal licences in 2026. However, receiving a formal licence does not necessarily mean that products will become fully available on the same day, as institutions may still need to complete local technology development, operational preparations and product testing.
| Institution | Date of In-Principle Approval | Date Formal Licence Was Announced | Status as at 2026-07-27 |
|---|---|---|---|
| Revolut | September 2025 | 17 June 2026 | Obtained Stored Value Facilities and Category II Retail Payment Services licences and is preparing local products |
| Remitly | Not disclosed in the announcement | 8 July 2026 | Obtained a Stored Value Facilities licence and a Category IV Exchange Business licence |
| Checkout.com | 27 July 2026 | Not yet obtained | Preparing for the second stage after completing the first-stage review |
Peer Approval Timelines Cannot Be Applied Directly to Checkout.com
Revolut received in-principle approval in September 2025 and announced on 17 June 2026 that it had obtained a Stored Value Facilities licence and a Category II Retail Payment Services licence, representing an interval of approximately nine months between the two publicly disclosed milestones. Even after receiving the licences, the company stated that it still needed to continue developing its local products, technology and operational capabilities before proceeding with a full launch.
Remitly’s corporate news page announced the full licences on 8 July 2026, while its investor relations announcement was dated 9 July 2026. The approvals included a Stored Value Facilities licence and authorisation for Category IV Exchange Business, but the company did not disclose the date on which it had previously received in-principle approval.
The business scope, capital structure, technology systems and remediation requirements of each institution differ. Revolut’s publicly disclosed approval interval of approximately nine months therefore cannot be used directly to predict when Checkout.com will receive its formal licence.
Processing Volume Growth Disclosed Without Underlying Business Base
Checkout.com stated that its total processing volume in theMENAregion increased by 62% year on year between 2024 and 2025. This figure reflects the regional growth rate disclosed by the company, but the announcement did not provide the corresponding absolute processing value or separately identify the contribution made by the UAE market.
Several Details Remain Unconfirmed Before Formal Launch
Whether the Central Bank of the UAE will ultimately issue the formal Stored Value Facilities licence.
The specific date on which card-issuing products will become available to UAE merchants.
The scope of physical cards, virtual cards and different corporate use cases.
Card-issuing fees, transaction charges, foreign exchange fees and other commercial terms.
The clearing and settlement mechanism used when transferring acquiring balances into card programmes.
Specific requirements governing customer fund protection, risk controls and merchant eligibility.
Accordingly, as at 27 July 2026, the confirmed regulatory development is that Checkout.com has received in-principle approval and completed a significant step beyond the first stage towards a full card-issuing business. The timing of formal licensing, product availability, pricing and settlement arrangements remains unconfirmed.
(Source: Checkout.com,Checkout.com strengthens UAE offering with in-principle Stored Value Facilities licence, published: 2026-07-27, regional processing volume growth and product plans sections.)
Frequently Asked Questions About Checkout.com’s UAE Card-Issuing Business
Can Checkout.com already conduct card-issuing business in the UAE?
The announcement alone does not confirm that Checkout.com can formally begin card-issuing operations. The company has received in-principle approval and must still satisfy the Central Bank of the UAE’s second-stage requirements and obtain a formal licence.
What is the difference between in-principle approval and a formal licence?
In-principle approval means that an application has passed its preliminary review, but it does not constitute final operating authorisation. A formal licence indicates that the regulator has completed its subsequent assessment and permits the institution to conduct regulated activities within the approved licence scope.
Does Checkout.com’s application represent entry into a new market?
It does not represent the company’s first entry into the UAE market. Checkout.com obtained a local Retail Payment Services licence in 2023. The current application is primarily intended to add card-issuing capabilities to its existing acquiring services.
Why might merchants use acquiring and card-issuing services together?
Merchants using both services may be able to fund card payment programmes directly from their acquiring balances, potentially reducing pre-funding, cross-platform transfers and duplicate reconciliation processes.
When will Checkout.com formally launch card-issuing products in the UAE?
As at 27 July 2026, the company had not announced a launch date. The timing will depend on completion of the second-stage regulatory requirements, formal licence approval and operational preparations for the products.
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