An Exclusive Interview with Andrew McCormack, COO of Al Etihad Payments

With over two decades of expertise in the financial services sector, Andrew McCormack is a seasoned payments executive currently serving as the Chief Operating Officer at Al Etihad Payments, UAE’s national payment system operator.

Could you briefly share your journey that led to your role as COO of Al Etihad Payments?

My journey into the payments industry has been quite diverse and unexpected. Initially, I began my career as a software engineer in the aerospace industry, where I spent nearly a decade honing my technical skills. After completing my MBA, I sought to broaden my horizons into business management and found myself leading a solar energy company in Canada. This role was invaluable in teaching me how to build and scale a small business.

It was during this time that my interest in financial services began to grow, particularly as I took on responsibilities for the company’s payments and financial operations. This newfound interest led me into the banking sector, then into insurance, and eventually into the payments industry.

I joined Payments Canada and ultimately became the CIO, where I oversaw the technology and payment services. Later, I had the opportunity to relocate to Singapore to establish an office for the Bank for International Settlements, an experience that was both challenging and rewarding, especially in the wake of the COVID-19 pandemic.

Currently, I have the privilege of serving as the COO at Al Etihad Payments, where I am leveraging my diverse experiences to build and transform the company into a leading national payment infrastructure provider.

Al Etihad Payments was established by the Central Bank of the UAE in 2023. What were the key motivations behind its creation, and how does AEP align with the UAE’s broader objectives for advancing the digital economy?

In many countries, the central bank doesn’t directly operate retail payment systems. Instead, they often rely on an operating entity to provide those retail-facing services for a variety of reasons. However, the central bank typically prefers to maintain an oversight role over the retail payment schemes and systems, and in this country, that is precisely how Al Etihad Payments came into existence.

The Central Bank decided to divest several functions, such as the UAEWPS and the UAESWITCH, the card switch that we manage. In addition, we have been tasked with enhancing these services with new offerings, such as AANI Instant Payments and others we will discuss later. This approach makes sense from an operational perspective, as a central bank in most countries acts more as a supervisor than an operator, and we have implemented this model here in the UAE.

The company was established last year, and we are in the process of scaling up, taking over the operational responsibilities for UAEWPS and the UAESWITCH. We launched the AANI Instant Payment service in late 2023 and will be launching a national card scheme in the not-too-distant future.

Could you share how AANI is driving innovation in the instant payments landscape and the progress you have made in expanding its reach?

AANI is the platform for innovation in instant payments, offering 24/7 real-time payment experiences and enabling a range of overlay services.

For example, users can simply send money using a mobile phone number, scan a QR code at a merchant checkout, or use it in an online e-commerce setting. AANI facilitates this level of digital innovation, supporting interbank payments, transactions between banks and wallet providers, and all other possible combinations.

All participants in the AANI system are licensed institutions, which includes banks, payment service providers, digital wallets, and exchange houses. We serve as the glue that connects these systems, offering a platform for innovation that participants can leverage to serve their customers and merchants.

Additionally, we have the AANI Mobile app, available in all major app stores. However, the reach of AANI payments extends beyond our app. The goal is for AANI services to be ubiquitous. We currently have around 30 participants, including banks and exchange houses, connected to the platform, and we expect to reach at least 50 by the end of the year. This means that the vast majority of the market will be connected, and AANI services will be available not just through our app, but through the apps of all these financial channels.

As a customer of a participating bank, you won’t even need to download our app to use AANI payment services—they will be natively available within your bank’s app or digital wallet. By the end of the year, we expect to have at least 95% of the market connected.

Could you provide some insight into how AANI plans to handle cross-border payments and integrate these services?

AANI’s initial focus is on the domestic payments side, such as person-to-person and person-to-merchant transactions using QR codes or mobile phone numbers— the use cases I previously described. Our priority is to scale the platform, connect all the banks and licensed participants, and have them enroll their customers. This step is crucial as it requires obtaining the customer’s consent to activate these services, and we also need to onboard all the merchants.

We want people to recognize AANI and see QR codes at checkout, providing them with the option to pay using this payment method. Our initial push is domestic, but as you mentioned, there are other countries implementing similar services. We do aspire to find ways to connect with them, so extending our platform from a domestic to a cross-border perspective is certainly on our roadmap.

Jaywan, the domestic card scheme, is a significant initiative. How will Jaywan improve the UAE’s payment infrastructure and cost structure?

Jaywan is the forthcoming national domestic card scheme. The name reflects the country’s heritage, as “Jaywan” translates to “precious pearl,” symbolizing the UAE’s rich culture and history. While domestic card schemes are not new—Canada’s Interac and Saudi Arabia’s Mada are established examples—the introduction of Jaywan is a significant step for the UAE. It represents a locally developed solution tailored for the UAE, ensuring secure and reliable transactions across various use cases, including point-of-sale and e-commerce.

Having a domestic card scheme provides several benefits, including enhancing resilience by giving the country control over its payment infrastructure. It also has the potential to reduce costs, as card payment fees for merchants can be quite high. One of the key objectives is to manage and control the cost structure of accepting digital and card payments within the UAE. Furthermore, Jaywan aims to ensure interoperability, not just within the UAE but also beyond its borders.

What are the key priorities for the launch of Jaywan, and how are you ensuring its success?

From a launch perspective, our current priority is acquiring. To simplify, it is crucial that once a bank issues a Jaywan card, it must work seamlessly wherever needed. For instance, when a customer uses the card in a shop, it should function properly from day one.

Our focus is on ensuring that the card works at ATMs, point-of-sale terminals, and supports various methods like tap, chip, and pin. E-commerce is another critical area, as it is more complex than point-of-sale. We need Jaywan to be accepted across a wide range of online retailers.

Additionally, we are working to onboard the initial group of issuers as soon as possible. We have a growing pipeline of issuers interested in developing their card products. While it’s challenging to provide an exact launch date, rest assured that all these components are progressing, and we are dedicated to ensuring a successful launch.

How does Al Etihad Payments support financial institutions, and what role do you play in assisting SMEs and retail customers?

Al Etihad Payments operates as a wholesaler, focusing on working with financial institutions rather than having direct relationships with SMEs or retail customers. Our support is channeled through our banking partners. We ensure that our partner banks are well-informed and equipped with the necessary information and documentation to assist their customers effectively.

While we do not engage directly in training or support for end users, such as small and medium-sized businesses, we provide the resources and support needed by our banking partners. These partners then assist their clients in integrating our services into their ERP systems, point-of-sale systems, and other applications. In summary, our role is to facilitate through our financial institution partners rather than engaging directly with end users.

How do the banking community and other financial entities perceive AANI compared to traditional credit and debit card usage?

We have received an overwhelmingly positive response from the banking community, as well as from digital wallets, payment service providers, and exchange houses. These participants are enthusiastic about joining and contributing to the initiative. While the attractive cost structure is a significant factor, the real value lies in the innovation this platform enables.

The platform allows participants to offer services that genuinely delight their customers. For instance, sending money to family members, splitting bills at restaurants, or other everyday transactions become extremely easy and cost-effective.

Industry response has been very encouraging. Although integrating these services requires a substantial technical effort from participants, we are making significant progress. We began last year with 10 participants and expect to exceed 50 by the end of this year. Nearly 1,000,000 end users are already enrolled, and our focus is now on enhancing merchant and e-commerce experiences.

In the next one to two years, we anticipate substantial innovation in the commercial space, with new and creative ways to seamlessly integrate payments into various customer journeys. This central platform supports industry-driven innovation, allowing us to facilitate rather than lead the development.

In your view, how soon could the UAE transition to becoming a 100 percent cashless economy, and what are the key steps required to achieve this goal?

The concept of becoming cashless is quite complex and nuanced. We prefer to think in terms of “less cash” rather than entirely cashless. Cash possesses unique attributes that are challenging to replicate in the digital world. For example, in a worst-case scenario where the power goes out, cash still functions, highlighting why it’s not practical to eliminate it from the economy.

Cash is widely used, universally accepted, and familiar to people, which are all valuable traits. Our goal is not to eliminate cash but to enhance our payment infrastructure by promoting more acceptance and usage of cost-effective digital payment methods. Over time, these methods may reduce cash usage in significant ways, but the objective is not to completely remove cash from the ecosystem.

By Salima Gutieva, Vice President & UAE Country Manager, Visa

Digitizing commerce is high on the agendas of many countries across the globe. In the UAE, the government, recognizing the benefits of digital payments for consumers, businesses, and the national economy, is driving forward its digital economy agenda through strategic collaboration with local and global financial institutions, fintechs, the business community, and payment technology players. 

The UAE government has also introduced important initiatives such as the Digital Economy Strategy to double the digital economy’s contribution to the country’s Gross Domestic Product from 9.7% to 19.4% within 10 years. For the UAE’s SME sector and entrepreneurs – a key engine of growth contributing as much as 63.5% to the country’s non-oil GDP – the government formed a National Entrepreneurship Agenda among other initiatives, to promote innovation and digital transformation within the sector. 

Empowering SMEs and Entrepreneurs

According to Visa’s recent Value of Acceptance study, around 70% of retailers in the UAE said digital payments is essential to business growth. To empower SMEs, cost-effective acceptance solutions are instrumental in facilitating their growth and success. Initiatives like the She’s Next Grant Program provide valuable support to women entrepreneurs, contributing to a more inclusive business environment.

Furthermore, innovative payment solutions have been growing in popularity in the UAE, which enables retailers to offer their customers a seamless, secure, flexible credit option by way of installments. In fact, the UAE is the first market worldwide where Visa Instalment Solutions (VIS) was launched with a set of unique, industry-wide features.

Role of Fintechs in Boosting Digital Payments

Besides small businesses, the financial sector is also a key driver of the economy. The growth of this sector is fueled by fintech innovations, which have attracted large-scale foreign investments while supporting the growth of SMEs, promoting entrepreneurship, and providing employment. Various programs including the Visa Everywhere Initiative have been implemented to support fintechs and entrepreneurs and scale up their solutions to solve today’s – and tomorrow’s – challenges in digital payments and commerce.

Digital Payment Transformation for UAE Tourism

As the UAE continues to solidify its position as a global business hub, tourism emerges as another key driver of growth, contributing 11.7% to the economy and AED220 billion in 2023, according to the World Travel & Tourism Council’s (WTTC) 2024 Economic Impact Research.

This robust performance is further underscored by travel analysis company ForwardKeys, ranking the UAE among the top 10 tourism destinations worldwide experiencing the strongest growth in international visitors in 2023 compared to 2019. In fact, overall spending by international tourists in 2022 was close to AED117.6 billion in UAE, and in 2023 alone, international visitors surged by nearly 40%, with DXB airport emerging as the world’s busiest international airport, surpassing pre-pandemic passenger levels by a significant margin .

The UAE government recently announced an AED37 billion investment to support its 2030 tourism strategy to increase the sector’s GDP contribution.  Digital payments also has an important role in the country’s tourism growth story.  Despite the remarkable growth we’ve seen, the prevalence of cash transactions in crosshaverder spending and travel highlights a substantial opportunity for the tourism sector. Leveraging their inherent advantages such as ubiquity, convenience, security, reliability, and accessibility, digital payments are poised to reshape the tourism landscape in the UAE.

With security and convenience being paramount concerns post-pandemic, further modernizing digital payment infrastructure becomes imperative to meet the expectations of travelers and enhance their overall visitor experience in the UAE. By offering seamless and secure digital payment options, the UAE can position itself as an even more technologically advanced and visitor-friendly destination, further amplifying its appeal to global travelers.

That’s why companies within the industry must continue to leverage technology, brand, and global networks of cardholders, as well as their bank and merchant partners to support the UAE government’s efforts to promote tourism.  Fostering public-private partnerships will further accelerate the adoption of digital payment solutions tailored to the unique requirements of the UAE’s tourism sector. This collaborative approach ensures that tourists have access to a diverse array of digital payment options, ranging from contactless payments to mobile wallets, facilitating frictionless transactions throughout their journey.

Innovation and Cybersecurity

Trust is the foundation of digital commerce. As consumers increasingly prioritize security and protect their personal information and funds, working to foster confidence in digital payments and commerce will be critical. As a company, we have invested more than $10 billion over the past five years to ensure secure transactions and build trust. In this regard, tokenization has revolutionized security for cardholders. This technology replaces sensitive card data with tokens, enhancing security, boosting sales conversions, and slashing fraud rates. It has boosted sales conversion by more than 5% and reduced fraudulent transactions by 30-50%. 

Presently, issuers and merchants alike are turning to data and insights from Artificial Intelligence (AI) and Machine Learning data models. Then incorporated into the buyer journey, this data-led approach lowers checkout friction, enhances real-time decision-making, and lends a better customer experience.

To support this experience, Visa’s AI-driven security protocols help build a resilient, world-class digital payment infrastructure. The company is currently developing AI value-added services, such as Real-Time Payments (RTP) prevention for fraud prevention on account-to-account transactions, and smarter solutions for stand-in processing and settlement forecasting. This has included $500 million on AI and data infrastructure, enabling us to power 100 different capabilities that use AI to protect clients and customers. In fact, in 2022 alone, we proactively prevented $27.1 billion in potential fraud.

Technologies like Visa Advanced Authorization (VAA) and Visa Consumer Authentication Service deliver the intelligence to reduce fraud and false declines while limiting friction for a better cardholder experience. This year, we expanded our global Value-Added Services business with three new AI-powered risk and fraud prevention solutions.

Ensuring a secure and seamless digital payment experience is essential for building trust and confidence among consumers and businesses. There are many strategies in place, such as the National Cyber Security Strategy and the Dubai Cyber Security Strategy, which position the UAE as a leader in innovation, security, and safety.

The establishment of the UAE Cybersecurity Council in 2020 reflects the government’s commitment to enhancing cybersecurity measures. In addition to government efforts, private companies like Visa have invested in campaigns like Stay Secure with Dubai Police to educate people, businesses, and local communities on how to protect themselves from evolving cyber threats and fraud.

Future Forward: Transitioning to a Digital Economy

Various stakeholders, including international companies, local banks, businesses, and government entities, are committed to shaping the digital payments landscape in the UAE.  Through continued collaboration, we can accelerate the transition from cash to a digital economy. This transition not only increases convenience and security for retailers and consumers alike, but also helps create an even more prosperous and inclusive future for everyone, everywhere in the country.

Integrator Media had an exclusive interview with Mr. Azeem Mohammed, B2B Leader, GCC Countries, Logitech. The interview delves into Logitech’s innovative strategies in hybrid work model. Mr. Azeem Mohammed shares his keen insights into how modern solutions enhance workplace security and productivity in a hybrid work environment. And how the integration of advanced technologies like AI-powered video conferencing and cutting-edge noise-canceling headsets, are designed to support seamless communication and robust cybersecurity practices. Learn how Logitech is setting new industry standards in flexibility, sustainability, and security while empowering businesses to thrive in the evolving landscape of remote and hybrid work

Overview of Logitech’s hybrid work model
Logitech has embraced a hybrid work model designed to empower flexibility and productivity across the workforce. This approach prioritizes the diverse needs of employees, offering them the desired freedom to work from a range of locations, including home offices and collaborative spaces. Central to this model are our advanced technologies. Our MeetUp 2 AI-powered USB conference camera exemplifies Logitech’s commitment to continuously enhancing remote collaboration. Equipped with AI-driven features like RightSight 2 for intelligent video framing and RightSound 2 for superior audio quality, the camera ensures seamless meetings regardless of the participants’ locations. This innovative approach equally underscores our dedication to meeting the evolving demands of the modern workplace whilst emphasizing the importance of sustainability. We have managed to integrate this into our hybrid work place model by incorporating 62% post consumer recycled plastic in to MeetUp2. By creating an innovative hybrid work model, Logitech is actively helping improve workplace flexibility whilst setting an important industry benchmark for sustainability.

Elaborate a little on Logitech Zone Wireless 2 product and how it provides a secure and scalable approach
Zone Wireless 2 stands as our premier business headset, integrating cutting-edge AI for unparalleled two-way noise-free communication. Featuring AI-driven far[1]end noise suppression, advanced noise-canceling microphones, hybrid Active Noise Cancellation (ANC), and personalized stereo sound, this headset ensures crystal[1]clear audio for business professionals, even in bustling environments. A standout feature is its capability to eliminate ambient noise from the other party’s end of the call, regardless of their headset type. Powered by Advanced Call Clarity and activated through Logi Tune, AI technology distinguishes the caller’s voice from background noise, facilitating seamless conversations. Superior noise-canceling microphones employ advanced beamforming technology to capture the user’s voice distinctly, fostering a comprehensive two-way noise suppression system.
For streamlined management, IT administrators think about security and privacy, and naturally they are interested in how data is protected in the software applications they deploy. Zone Wireless 2 integrates seamlessly with Sync, Logitech’s robust device management platform. This allows IT administrators to securely and efficiently update firmware and troubleshoot headsets, whether they are used remotely or on-site, through a unified, cloud-based interface. Sync processes data and information that hardware devices report to it and presents IT admins with actionable data regarding monitoring, management, and room insights. Sync users easily log on to the dedicated web portal at sync.logitech.com to manage their Logitech devices. This fresh approach to remote monitoring and device management simplifies tasks like firmware updates and feature enablement, while the API and forward-looking architecture establish a robust foundation for new insights and integrations.

How does the hybrid active noise cancellation (ANC) feature protect sensitive information during calls in noisy environments?
The hybrid active noise cancellation (ANC) feature protects sensitive information by reducing ambient sounds like street sounds that include car honking, construction and sounds from family members or pets. It allows you to stay focused and engaged during calls, without any distracting background noise. ANC technology is a combination of advanced microphone technologies and sophisticated software algorithms that work together to cancel out noise. This means that you can continue working at your optimal level, without having to adjust the volume or change your environment. Moreover, it relies on microphones to seek out ambient noises and then cancel them out. Whether you are working in a noisy office setting or from a coffee shop, ANC technology ensures that you can hear your calls and stay focused on your tasks without any distractions. This feature makes your conversations more private, work life easier and enables you to be more productive, no matter where you are.

How can IT teams leverage Logitech Sync to manage and secure Zone Wireless 2 headsets remotely?
Logitech Sync provides a streamlined solution for IT teams to remotely manage and secure Zone Wireless 2 headsets across a range of environments. Importantly, Logitech Sync offers centralized management, allowing teams to monitor and control all Zone Wireless 2 headsets from a single platform. This streamlines tasks such as tracking device status and adjusting configurations, which reduces manual effort and improves efficiency. The real-time monitoring feature helps IT teams to swiftly identify and address any issues, reducing any downtime and enhancing user experience. Security is also strengthened with Logitech Sync, as it enables IT teams to enforce compliance with organizational standards by managing device settings and applying necessary security patches remotely. In addition, the platform allows for seamless firmware updates, ensuring all headsets benefit from the latest features and security improvements. By utilizing Logitech Sync, IT teams can ensure secure management of Zone Wireless 2 headsets, resulting in a more streamlined and secure working environment

How can you ensure employees maintain cybersecurity best practices when working remotely?
In the current hybrid working environment, ensuring cybersecurity best practices for our employees remains a top priority at Logitech. This can only be fully achieved through a multifaceted approach, requiring comprehensive training and a solid IT infrastructure. Enforcing strict access controls and encryption protocols across all devices and networks ensures a solid foundation. For hybrid work in particular, employing advanced endpoint protection and VPN solutions importantly secures remote connections, which we can then monitor for any potential breaches. Once this infrastructure is in place, robust training programs can be scheduled in. This will empower employees with the knowledge to recognize phishing attempts, use secure passwords and identify any suspicious activities. Both of these approaches are equally important in fostering a company culture of vigilance and accountability. Integrating these best practice strategies allows Logitech to maintain a proactive stance against cybersecurity threats, simultaneously safeguarding our operations and customer trust.
Share your insight into trends that will play a role in hybrid workplace culture, cybersecurity, and technologies in 2024
Considering the trends already seen in 2024, we can expect the hybrid workplace model to continue evolving rapidly. Undoubtedly, advancements in technology will help to strengthen the seamless integration of virtual and physical workspaces. Integration will become more refined, for example enhancing remote access for room booking. Logitech’s Sync software is ahead of this trend, with new room booking software on Tap Scheduler helping to solve common conference room booking conflicts, especially with a hybrid workforce. In order to support the flexibility of the modern workplace, cybersecurity will of course be paramount to organizations of all sizes. It is highly likely that AI-threat detection will be increasingly adopted in order to mitigate the threat of cybercriminal activity, with solutions being enhanced to protect the hybrid work of employees without compromising data integrity.
Building upon this, the technological potential of AI will continue to be tested, alongside augmented reality (AR) and virtual reality (VR). These tools are incredibly valuable to a remote workforce, further bridging the physical distance through immersive experiences and collaboration. At Logitech, we are committed to innovating products in line with technological trends. Importantly, our focus on the hybrid work environment not only enhances productivity but also prioritizes user well-being. Our company proudly embrace these trends in order to remain at the forefront of shaping the future of work.