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Network International Sees No Impact From UAE Merchant Fee Changes

Mon, 07th Sep 2020 09:23

(Alliance News) - Network International Holdings PLC on Monday said it expects "no adverse impact" on its financial performance due to changes in fees incurred by merchants who accept digital and card transactions in the UAE.

The FTSE 250-listed payment solutions company said the UAE Central Bank has confirmed a reduction in interchange fees charged to merchants on debit card transactions, which will be introduced in a phased manner.

Interchange fees are those which are charged by the card issuing banks. There is no proposed regulation of the fees charged by acquirers, such as Network International.

The reduction in interchange fees is a pass-through cost from Network International to merchant customers and therefore the company expects "no adverse impact".

Over the medium to longer term, however, Middle East-focussed Network International expects the reduction in fees to benefit the business, as it will further accelerate the adoption of card and digital payment acceptance by merchants.

Shares in Network International were up 5.2% at 407.20 pence each in London on Monday morning.

By Tapan Panchal; tapanpanchal@alliancenews.com