UAE Central Bank subsidiary unveils instant payments platform for digital transactions

Aani allows users to transfer and settle funds in less than 10 seconds and will initially support transactions of up to $13,600

The new instant payments platform is a key initiative under the UAE Central Bank’s Financial Infrastructure Transformation programme. Photo: UAE Central Bank

Al Etihad Payments, a subsidiary of the UAE Central Bank, has unveiled Aani, an instant payments platform that is intended to transform the digital payments landscape in the Emirates.

A key initiative under the central bank’s Financial Infrastructure Transformation programme, Aani allows users to transfer and settle funds anytime in less than 10 seconds, the regulator said on Monday.

The platform enables licensed financial institutions and payment service providers to offer consumers, businesses, corporates and government entities an “unparalleled digital payment experience”, enabling transactions to be processed instantly and securely 24 hours a day, seven days a week, the Central Bank added.

Aani, which will initially support payments of up to Dh50,000 ($13,612), is expected to modernise the UAE’s payments infrastructure, boost financial inclusion and support the move towards a cashless society, it said.

“The launch of Aani exemplifies our unwavering commitment to digitise the economy and advance the financial sector, aligning with … the CBUAE’s objectives,” said Saif Al Dhaheri, chairman of Al Etihad Payments.

“Aani is not just a payment platform; it represents a catalyst for economic growth, innovation and financial inclusion. We remain dedicated to fostering an ecosystem that encourages innovation, competition and growth, benefitting the entire financial system.”

The move follows the announcement of a UAE-India strategic agreement earlier this month to launch a domestic card initiative in the Emirates.

It will be based on India’s RuPay cards, which includes debit, credit and prepaid options, and will be available throughout the banking spectrum, including public, private and small lenders.

The initiative will become operational by the middle of next year, India’s Minister of Commerce and Industry Piyush Goyal told The National.

It aims to enable the growth of e-commerce and digital transactions in the UAE, boost financial inclusion and support the country’s digitisation goals.

It also seeks to increase alternate payment options, reduce the cost of payments and enhance the UAE's competitiveness and position as a global payments leader.

The coronavirus pandemic spurred the faster adoption of digital payments around the world, with digital wallets, credit and debit cards and buy now, pay later solutions substituting physical money, according to the FIS Global Payments Report 2023.

Credit cards are the most popular way to pay for e-commerce transactions in the UAE, followed by digital wallets, which account for 24 per cent of transaction values, up from 23 per cent in 2021, the report said.

Meanwhile, more than half of consumers in the UAE plan to go cashless by 2024, compared with the global average of 41 per cent, a Visa study last year showed.

Aani includes features that will allow users to transfer money instantly using only the recipient’s phone number or email, the central bank said. Other functions of Aani include “request money” and “split bills”.

Aani also supports QR codes, supporting cashless payments at merchants. Additional functionalities such as real-time direct debit, electronic direct debit authorisation and fully digital cheques that can be issued, cleared and settled instantly will be introduced soon, the regulator said.

The launch involves the participation of 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.

Al Etihad Payments is working to sign up more licensed financial institutions by the end of 2024, the Central Bank added.

Aani enables instant fund transfers to a range of beneficiaries and enables secure payments for various services, from government payments and bills to online shopping and in-store purchases, the regulator said.

It will be accessible through the existing channels of the participating entities, or through Al Etihad Payments’ Aani mobile app.

Al Etihad Payments has also been working with Magnati, Mashreq/Neo Pay and Network International to enable Aani QR-based payments with merchants, with a view to signing up many merchants in the coming months through these and other licensed merchant acquirers, according to the Central Bank.

Currently, Aani payments are limited to domestic transfers, allowing customers to send and receive money, in dirhams, only between accounts held at licensed financial institutions or licensed payment service providers in the UAE.

Al Etihad Payments will continue to explore opportunities to connect with overseas instant payment platforms to support cross-border instant payments, including international remittances, the Central Bank said.