Dubai, UAE – The UAE’s groundbreaking payment card system, Jaywan, is set to achieve two significant milestones by the end of August, paving the way for banks to begin issuing the card to clients by the end of the third quarter. The system is expected to gain substantial momentum in the fourth quarter.
By the end of August, over 90% of Point-of-Sale (PoS) terminals in the UAE will be equipped to process payments using Jaywan cards. Currently, approximately 95% of ATMs in the country are ready to handle Jaywan-based card withdrawals and related services.
The issuance of Jaywan cards, conceptualized by Al Etihad Payments, a subsidiary of the Central Bank of UAE, will then commence through various banks operating in the country, including branches of foreign banks, provided they manage accounts on behalf of their clients in the UAE.
Jaywan Card Features and Usability
Jaywan will initially be available as debit cards issued by banks or as prepaid cards from local exchange houses. At present, there is no credit card feature for Jaywan. These debit cards are expected to be issued without any charges to the users.
The ability to use Jaywan for e-commerce transactions will be integrated soon, positioning Jaywan as a versatile payment platform similar to Visa. Market sources suggest that Jaywan’s fee structure will be competitively priced, benefiting local consumers.
By September, leading banks, retailers, and service providers in the UAE are expected to launch major campaigns and promotions tied to the Jaywan scheme.
Lower Processing Costs and Enhanced Readiness
“Jaywan payment cards will lower the end-to-end cost of card processing in the UAE,” stated Jan Pilbauer, CEO of Al Etihad Payments. “Currently, we are at the 40% mark for PoS terminal readiness, and this will grow each week to reach 95% in August.”
Pilbauer emphasized the importance of ensuring the platform’s readiness before granting issuers, such as banks and remittance houses, the green light to distribute Jaywan cards on a large scale. “Many issuers are ready, but we want to ensure everything is perfect before the launch to avoid any negative consumer experiences,” he added.
According to sources at UAE banks, the full rollout of Jaywan cards to all customers could take one to two years, with over 8 million cards expected to be issued.
International Usability and Future Developments
While Jaywan is primarily designed for domestic use, it can also be used internationally under certain conditions. “Banks in the UAE can issue standalone Jaywan cards or co-badged cards that feature Jaywan and other international card schemes,” explained Pilbauer. This co-badging allows cardholders to make payments outside the UAE.
Al Etihad Payments plans to establish agreements with payment authorities in other countries to facilitate international transactions for Jaywan cardholders.
The Vision Behind Jaywan
Jaywan, meaning ‘precious pearl’ in Arabic, represents a key component of the UAE’s initiative to create a domestic payment platform with unique features. The UAE already has its own payment processing platforms, such as ‘Magnati’ from FAB and Network International, recently acquired by Canadian investment firm Brookfield.
“With Jaywan, we aimed to create something that everyone in the UAE could be proud of,” said Pilbauer. “It enhances financial stability and ensures that we have robust domestic payment solutions to meet the needs of the UAE. Our goal was also to be more efficient with our domestic creations.”
Although Al Etihad Payments will not set transaction fees, they aim to make the process as efficient and cost-effective as possible. Pilbauer expressed confidence that Jaywan would reduce the overall cost of card processing in the UAE.
Future Prospects: Jaywan Credit Cards?
Regarding the potential for a Jaywan credit card, Pilbauer stated, “As things stand now, I don’t know. It will depend on how the market evolves around the Jaywan card services available at launch. There are domestic card schemes in other countries evolving and offering credit products, which may be a future path for Jaywan, but not for now.”
With Jaywan poised to revolutionize the UAE’s payment landscape, its upcoming launch marks a significant step towards enhancing financial inclusivity and efficiency in the region.
