Building a Smarter Payment Ecosystem: Connecting Banks, Businesses, and Consumers in the UAE

Established by the Central Bank of the UAE in 2023, Al Etihad Payments is at the helm of revolutionizing the nation’s payment landscape—scaling up operations, taking charge of UAESWITCH and UAEWPS, and shaping the future of digital transactions.

In this exclusive interview, CEO Jan Pilbauer shares insights into the roll out of Jaywan and the evolution of Aani, unveiling the journey of domestic payment schemes, the hurdles faced in bringing them to the forefront, and the game-changing impact on merchants, financial institutions, and consumers alike. As the UAE races toward a fully integrated digital economy, this conversation breaks down the components of progress, giving you an inside look at where the future of payments is headed.

How is Al Etihad Payments transforming the UAE’s payment infrastructure to align with the country’s digital economy vision?

We are an organization dedicated to making your money move—seamlessly and tirelessly, 24/7. You don’t have to think about it, and that’s the way it should be. As a national payments company, our role goes beyond just technology— we help define the rules that govern how different players in the ecosystem interact. Payments should be effortless; people should only need to think about how much they need to pay, not how the payment system itself works.

Historically, many nations didn’t focus on their national payment systems. However, in recent years, countries have recognized that having a frictionless, efficient payments infrastructure is crucial for economic competitiveness. That is why we have seen the rise of national payment companies like Al Etihad Payments. The UAE took this step in 2023, and since then, we have been transforming the payments landscape. While the existing infrastructure served its purpose, our mission is to prepare it for the digital future and align it with the UAE’s vision for a thriving digital economy. We are committed to developing even better solutions for individuals and businesses across the UAE.

Can you share your journey as the CEO of Al Etihad Payments?

Al Etihad Payments was established two years ago. And I moved to the UAE specifically for its purpose. The company’s mission is straightforward—we aim to build one of the world’s most advanced, modern, and inclusive payment ecosystems. National payment infrastructure is about more than just technology; it’s about ensuring that everyone in the economy has access to and benefits from seamless financial services. I firmly believe that if we do this right, we can truly change people’s lives. Before joining Al Etihad Payments, I worked in various global jurisdictions. I spent time in Africa, where financial inclusion is a game changer. When people gain access to financial services, they can build credit histories, access loans, and improve their lives in transformative ways. It was an honour to be part of that journey. Prior to that, I worked in Canada, gaining experience in the North American and European financial sectors.

The past two years at Al Etihad Payments have been an incredible journey, and I’m particularly proud of what we have built. What I am most proud of is the team. We started as a kind of startup—building everything from scratch. We had the opportunity to shape the company’s culture and bring together people who are driven by a shared purpose: making a real impact on the country and enabling those around us to succeed. That takes a special kind of dedication, and I feel fortunate to be part of it.

What is Aani, and how does it enhance the payment experience in the UAE?

Aani in Arabic means “instant!” True to its name, Aani is an instant payment solution that enables money to move between two stores of value within seconds. It is fast, seamless, and designed for convenience. Previously, transferring money meant sharing lengthy IBAN numbers—where even a single typo could force you to start over.

How has Aani evolved since its launch, and what impact has it had on digital payments and financial inclusion in the UAE?
Aani is about empowering people with more choices, so they can decide whether to use cash or a digital payment method based on what is most convenient for them. When it comes to adoption, we are just over a year since Aani’s launch, and the results have been promising. So far, around 1.5 million people have signed up. That means users can already send and receive money using just a mobile number, email address, or even their Emirates ID—a significant milestone for digital payments in the UAE.

On the merchant side, we now have nearly 100,000 businesses enabled to accept Aani. If you walk into a traditional retail store today and ask about Aani, there is a high chance that they either already accept it or will very soon. Merchants can receive payments simply by generating a QR code, making digital transactions as easy as cash payments. This progress has led to significant transaction growth, with 20% to 30% month-over-month increases. Some days, we process up to 400,000 transactions, which is a strong indicator that adoption is steadily rising.

That said, humans are creatures of habit. Interestingly, 98% still use traditional IBAN transfers, despite the availability of more convenient options. This is likely because people already have their beneficiaries saved in banking apps, so they continue using IBANs by default. However, we are seeing gradual growth in mobile-number-based payments, which suggests a shift in behaviour over time.

As for the role of financial institutions, one of the unique aspects of Aani is that it is not a separate app you have to search for—it is a payment option that integrates seamlessly into your existing banking experience. Most major financial institutions in the UAE (around 55 participants) already support Aani, meaning that when you open your regular banking app, Aani is right there as a built-in payment option. Of course, we do offer an official Aani app for those who prefer to use it separately.

What is the Aani app all about? When you already have access to Aani through banks, so why was it necessary to have an app?
That’s a great question, and many countries have implemented both models—either relying entirely on financial institutions to provide payment channels or developing their own independent platform. We decided to introduce our own Aani app for two main reasons.

First, while Aani is integrated into all major banking and financial institution channels, managing multiple accounts can be cumbersome. If you have multiple bank accounts, an exchange house account, or a digital wallet, you typically must log in separately to each one to access your funds. The Aani app eliminates this hassle by allowing you to connect all your stores of value in one place. For example, I personally have a bank account, a digital wallet, and a prepaid travel card all linked to my Aani app. This highlights Aani’s inclusivity—you can seamlessly transfer and transact between different financial accounts, whether moving money from a wallet to a bank account or vice versa.

The second reason is to provide access to Aani’s full range of features. The app enables users to split bills, scan QR codes to pay merchants, and access additional functionalities. One of Aani’s core principles is inclusivity, ensuring that even smaller financial institutions and non-traditional players can participate. Many of these institutions may not have their own apps and developing one would take significant time and investment. By offering the Aani app as a ready-made digital channel, we allow them to provide their customers with a seamless payment experience.

That said, Aani is not just about the app. Looking at the statistics today, only about 30% of Aani transactions are initiated through the app, while the remaining two-thirds come through traditional financial institution channels. This balance shows that while the app enhances accessibility, banks and other financial players remain key drivers in the Aani ecosystem.

What challenges did banks face when integrating Aani into their backend processes?

Well, safeguarding people’s money is a top priority for banks. When you entrust your hard-earned salary to a bank, you expect it to be protected. Unfortunately, financial fraud and scams are becoming increasingly common. One major challenge is the speed of transactions. When payments are processed instantly, banks and other financial institutions have significantly less time to assess whether a transaction is legitimate or potentially fraudulent. With Aani, institutions are required to decide on a payment within 10 seconds. Once a payment goes through, it’s irrevocable—the recipient can immediately access, withdraw, or use the funds.

This shift has required banks to overhaul their backend systems to ensure that security remains uncompromised while meeting the demands of real-time payments. They have had to implement advanced fraud detection measures, automate decisionmaking processes, and upgrade their infrastructure to handle instantaneous transactions—all while maintaining the trust and safety of their customers.

Why is the UAE launching its own domestic card scheme, and what advantages will Jaywan offer to residents and merchants?
Jaywan is the UAE’s domestic card scheme, joining a global trend where many countries establish their own payment networks. This will be initially launched with debit and prepaid cards. However, if there is sufficient demand, we will expand to include credit cards as well. There are typically two main reasons why a country introduces a domestic card scheme.

First, while international card schemes have done an excellent job in creating seamless global interoperability, they may not always be tailored to the specific needs of a particular jurisdiction. Jaywan is designed specifically for the UAE’s residents, offering localized benefits such as merchant discounts and exclusive access to certain services within the country.

Secondly, a domestic card scheme can be more efficient and cost-effective. Jaywan is expected to reduce transaction costs for merchants while ensuring high operational efficiency. Additionally, all transaction processing will take place within the UAE, leveraging the robust 24/7 payment infrastructure we have built. Currently, we process nearly two million card transactions daily, and Jaywan will benefit from this strong foundation, ensuring reliability and security for users across the country.