Jaywan; Banks and financial institutions in the UAE are set to embark on a groundbreaking journey as they prepare to introduce the innovative payment card
Starting from the second quarter of this year. Revealed exclusively to Khaleej Times, this initiative, announced recently, is slated for completion within two years, as per a senior official’s statement.
Andrew McCormack, the Chief Operating Officer at Al Etihad Payments (AEP), a subsidiary of the Central Bank of the UAE established in 2023, shared insights into the ambitious rollout plan for Jaywan. With an aggressive growth strategy, Jaywan aims to commence issuing debit cards in Q2 2024 in collaboration with select partners. Over the subsequent years, the Central Bank of the UAE plans to mandate all banks to provide Jaywan as debit cards to their clientele across the UAE.
The inception of Al Etihad Payments marks a significant milestone in the financial landscape of the UAE. Tasked with developing and operating financial market infrastructure, AEP has swiftly established its presence across various retail systems, including legacy platforms such as the Wage Protection System and the UAE Switch. A pivotal development occurred in October 2023 when AEP forged a partnership with NPCI International Payments Limited (NIPL) of India to advance the UAE’s inaugural national Domestic Card Scheme (DCS).
Jaywan, operated by AEP, was unveiled during the visit of Indian Prime Minister Narendra Modi to the UAE. Leveraging licensed technology from India’s payment operator NPCI, it is poised to revolutionize payment solutions in the region. As part of its strategy, Jaywan cards will be issued to UAE residents holding bank accounts or banking with exchange houses, expanding accessibility and convenience in financial transactions.
In addition to domestic utility, Jaywan cards will be interoperable in India once electronic linkages are established, facilitating seamless transactions across borders. Notably, the UAE’s cards and payment market, valued at nearly $120 billion by the end of 2022, is projected to sustain high single-digit growth in the foreseeable future, according to Global Data.
One of the distinguishing features of Jaywan cards is their versatility. Designed to cater to the needs of UAE residents who travel extensively, these cards can be co-badged with Mastercard or Visa, enabling global acceptance. McCormack emphasized the strategic significance of this feature, noting its potential to enhance accessibility across the UAE, GCC, and India. Moreover, partnerships with leading payment networks like Mastercard and Visa ensure broader international reach for it cardholders.
As banks transition to issuing Jaywan cards, customers can expect enhanced domestic transaction capabilities alongside seamless international usage through co-badged cards. McCormack underscored Jaywan’s evolving presence in India and the GCC, highlighting its independence from traditional payment networks in these regions.
While Jaywan’s credit cards are not currently part of the rollout plan, McCormack hinted at forthcoming announcements regarding launch partners for the Jaywan card. Reflecting on the rationale behind introducing a new domestic payment method, McCormack emphasized two primary objectives: bolstering economic sovereignty and optimizing payment processing costs. By assuming greater control over the domestic payment system, the UAE aims to empower consumers and merchants while fostering economic resilience and efficiency.
In conclusion, the imminent introduction of it heralds a new era of financial innovation and autonomy for the UAE. As stakeholders collaborate to realize this ambitious vision, Jaywan is poised to redefine payment dynamics, driving economic growth and prosperity across the region. With its promise of enhanced accessibility, security, and efficiency, Jaywan emerges as a catalyst for transformation in the UAE’s financial ecosystem, paving the way for a brighter and more inclusive future.
Furthermore, McCormack elaborated on the phased approach adopted by banks and financial institutions, allowing for a smooth transition to Jaywan cards. Given the complexity of such projects and the requisite investments, a two-year timeline provides stakeholders with adequate time to implement necessary changes. As new customers onboard, they will receive cards, while existing cardholders will receive replacements upon card expiry, ensuring widespread adoption of the new payment solution.
The strategic significance of it extends beyond its technological prowess. McCormack underscored its pivotal role in bolstering national sovereignty and managing payment processing costs over time. By exerting greater control over the domestic payment ecosystem, the UAE aims to enhance economic resilience and drive sustainable growth. Through meticulous planning and execution, Jaywan promises to deliver tangible benefits to consumers and merchants alike, catalyzing a paradigm shift in financial transactions.
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