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In the second instalment of an exclusive interview with Vixio, Jan Pilbauer, chief executive of government-backed Al Etihad Payments explains how the Aani payments platform is seeking to enhance inclusivity in the UAE’s financial sector.
The platform, which is backed by the Central Bank of the United Arab Emirates (CBUAE), aims to welcome all licensed financial institutions, not just banks, with a comprehensive approach.
In his interview with Vixio, Pilbauer focused on the platform's inclusive capabilities.
"Aani allows salary cards to be used as a source of funds and enables money movement between traditional and non-traditional accounts. This fosters fully interoperable transactions, allowing fintechs and others to engage seamlessly."
For example, Aani offers real-time IBAN-to-IBAN transfers, enhancing financial convenience by shifting transactions from traditional channels.
Pilbauer also pointed to the platform's utility for fintechs, especially for managing wallet top-ups via its request-to-pay feature.
He noted that QR code adoption at points of sale and a split-bill feature have also gained traction, which he believes makes Aani a valuable tool for everyday financial needs.
International inspiration
Similar models have been developed elsewhere, a good example being the Unified Payments Interface (UPI) in India, where a dedicated entity handles retail payments.
UPI has even become a source of soft power for India’s National Payments Corporation of India (NCPI), with the Central Reserve Bank of Peru partnering with NPCI International Payments Limited to create a similar payment system in June.
Pilbauer said the success of UPI drove the CBUAE’s decision to enhance infrastructure, with Al Etihad Payments assuming responsibility for most retail payment activities, including initiatives such as open finance and domestic card schemes.
“As a licensed entity, we're not regulators, ensuring clarity and avoiding conflicts,” he said. “With a transparent cost structure and a focus on efficiency, we're effectively fenced as a national payments entity."
Payments are becoming an increasingly national topic. For example, the UK and Ireland are both expected to release strategies for payments in the next year or so.
And in the EU there has been a push for payments to provide more sovereignty, as evidenced by the eurozone’s at times controversial digital euro project, as well as the mandating of payment service providers (PSPs) to send and receive instant payments via the Instant Payments Regulation (IPR).
In addition, the European Commission and European Central Bank have shown enthusiastic support for the European Payments Initiative, which is expected to launch its Wero mobile payments app in the next 12 months.
"There's a global trend towards asserting sovereignty, especially concerning control over digital payments so that there isn't a complete reliance on international players,” said Pilbauer. “While Aani wasn’t specifically designed for this purpose, it focuses on digitalising cash payments.”
He said that the goal is to give people access to digital payments through simple solutions, such as printing a static QR code on a piece of paper, eliminating the need for an expensive point of sale terminal to accept mobile payments.
In addition, Al Etihad Payments is launching a domestic debit card scheme, called the Jaywan project. Pilbauer told Vixio: “This will serve multiple purposes, including enhancing sovereignty and efficiency. We anticipate that people will take pride in using these cards. Issuers can collaborate with card schemes to co-badge, further strengthening partnerships internationally."
Fraud and cyber threats
Pilbauer also emphasised the growing sophistication of cyber threats targeting payments and financial services.
This can often be a hindrance to the instant and digital payments landscape. In the UK, for example, the success of the Faster Payments Service (FPS) has been affected by the sharp growth in authorised push payment (APP) fraud, which has also been a growing issue in other jurisdictions such as the EU, the US and Australia.
"The scale and sophistication of cyber threats, in general, continues to increase. Payments and financial services remain targets as the fraudsters are motivated by the potential financial gain," Pilbauer stated.
Addressing these concerns, Al Etihad Payments has sought to prioritise securing customer data and funds. "Keeping customers’ data and their money safe is the key task,'' Pilbauer affirmed, outlining the platform’s advanced solutions offered at the central platform level.
He added that the institution’s commitment to combat fraud extends beyond technical measures. "We continuously monitor the threat landscape, identify new attacks, and work together with the ecosystem on educational campaigns,” he said.
“Combating fraud has to go far beyond the technical solutions."
