The UAE is ready to bid goodbye to IBANs and complicated bank transfers. In an exclusive interview with Finance Middle East, Jan Pilbauer, CEO of Al Etihad Payments, discusses the technologies that power Aani. This new payment platform allows users to instantly transfer funds using a QR code, email or mobile phone.
“What’s revolutionary is the speed in processing transactions that happen in a matter of seconds (less than 10 seconds), and we can instantly see the transaction either succeeding or failing status,” Pilbauer says. “This is one thing that differentiates it from traditional platforms, providing users with immediate and efficient financial transactions.
“Overall, Aani combines speed, simplicity, user-friendliness and strong security features to create a unique, safe and efficient payment platform in the UAE.”
The rise of instant payments
The launch of Aani coincides with the continued rise in the value of the UAE digital payments market, which is set to reach $31.25 billion in 2024 and $39.13 billion by 2027, Statista found. In 2023, digital wallets accounted for 24% of transaction values in the country, up from 23% in 2021, according to the FIS Global Payments Report 2023.
In this context, Aani has been presented as the platform to transform the UAE’s digital payments landscape. Powered by Al Etihad Payments, a subsidiary of the UAE Central Bank, the platform enables transactions to be processed instantly and securely 24 hours a day, seven days a week, in what was described as an “unparalleled digital payment experience”.
To achieve this, Aani relies on a combination of cutting-edge technologies. The platform leverages ISO20022 for more information travelling with payments, advanced real-time processing systems and optimised data transmission protocols. Its infrastructure is designed for low latency, ensuring quick and secure communication between financial institutions and minimising processing times.
“The platform’s architecture prioritises efficiency, optimising the use of computing resources to handle a large volume of transactions simultaneously,” Pilbauer says. “These technological aspects collectively contribute to Aani’s capability to facilitate instant payments, setting a new benchmark in the UAE’s digital payments landscape.”
How it works
The process is simple. Users can open their financial institution’s mobile app, select a payee from their phone book, authenticate it, and send up to Dh50,000 ($13,612) almost instantly. Alternatively, the central Aani app allows users to connect multiple accounts from different banks and even request funds from contacts, creating a seamless customer experience.
What about in-store payments? That’s where the QR codes come into play. Aani has been designed to allow merchants who may not be able to accept card payments to display a QR code that customers can scan to pay in real time. This ease of use was a vital aspect of the product design process, Pilbauer explains, aimed at facilitating a rapid and efficient user experience, one “aligning with modern expectations for instant and seamless transactions”.
Faster, safer and more accessible
In addition to improving the speed and efficiency of money transfers, Aani is expected to drive the transition towards a more accessible and inclusive financial sector, following the targets set by the UAE’s Financial Infrastructure Transformation (FIT) Program.
“Aani’s introduction aligns seamlessly with the overarching goals of the FIT Program,” Pilbauer says. “As an instant payment platform that is both secure and efficient, Aani directly supports the FIT Program’s objectives of boosting digital transactions and positioning the UAE as a global leader in digital payments. Aani’s user-centric design and innovative features echo the FIT program’s vision of creating a robust and technologically advanced financial ecosystem in the UAE.”
With the launch of each new payment platform comes security, particularly when discussing instant and always-on payments. In Pilbauer’s words: “Aani adheres to the highest international standards of security, implementing robust encryption protocols to safeguard user data and transaction information.”
Even if the worst were to occur, the CEO stresses that the company has contingency measures in place, including redundant systems and failover mechanisms. Additionally, the platform’s architecture is modular and designed to scale horizontally, allowing for the addition of new resources and servers to handle growing transaction volumes.
Looking forward
Aani has been integrated with eight licensed financial institutions: Abu Dhabi Commercial Bank, Al Fardan Exchange, Emirates NBD, Finance House, First Abu Dhabi Bank, Habib Bank AG Zurich, Mashreq Bank and National Bank of Fujairah. However, the goal is to extend this number within the UAE and beyond to allow users to conduct cross-border transactions seamlessly.
“Aani’s expansion roadmap is dynamic and forward-looking, aiming to enhance the platform’s capabilities and user experience,” Pilbauer says. “Our primary focus in 2024 is to extend the Aani platform reach by onboarding more licensed financial institutions, enabling merchants to accept Aani payments, and, of course, enrolling more end-users.”
One significant aspect of this expansion involves the incorporation of additional functionalities to meet evolving user needs. Aani plans to introduce advanced features such as electronic direct debit authorisation and claim processing, fully digital cheques, revamped payment gateway and upgraded WPS systems, enhancing the platform’s versatility.
“Aani is committed to ongoing technological advancements, ensuring that the platform remains at the forefront of digital payment solutions,” Pilbauer adds. “These additions will not only broaden the platform’s range of services but also position Aani as a comprehensive national financial infrastructure.”
