ALLAN JACOB (ABU DHABI)

The UAE’s instant payments platform Aani is gaining traction with more banks actively rolling out the mobile number-based system to customers on their apps in the first phase.

Emirates NBD is the latest bank to enroll customers for Aani on its app ENBD X for domestic transactions. Bank customers were automatically enrolled for the service via its mobile app from Sunday, in what is the new normal for digital transactions in the UAE – swift and easy – by simply adding the telephone number of a beneficiary and transferring money in seconds.

Aani requires no IBAN or account number, and an instant payment of up to Dh5,000 can be made per transaction. The system is accessible 24/7 and free for all customers.

Launched by Al Etihad Payments in 2023, in alignment with the Central Bank of UAE’s National Payment System Strategy (NPSS), Aani aims to change the nation’s digital payment system.

Al Etihad Payments, which operates Aani, said over 57 licensed financial institutions, including the UAE’s largest banks and exchange houses, have joined the initiative in less than a year.

Besides Emirates NBD, banks like ADIB, ADCB, FAB and others have also embedded Aani into their mobile applications.

According to Al Etihad Payments, Aani handles over 500,000 transactions daily, with an impressive 27% month-on-month growth in transaction volume.

The platform operates under the UAE central bank regulatory framework with high standards of security and is constantly evolving to keep pace with the needs of people and businesses. Al Etihad Payments aims to roll out other features like QR code and email payments soon.

There are 10 million people in the UAE, and Al Etihad Payments expects more will join the digital revolution by the end of the year. Similar services in other countries include UPI in India and PayNow in Singapore.

Peer-to-peer transfers are made convenient using Aani, where small amounts of money are exchanged without having to go and register a beneficiary on online banking platforms with their IBAN, address and middle name.

According to a survey of 2,800 people across the GCC by Visa earlier this year, 23% of transactions by UAE consumers are done using cash.

The research found that within the peer-to-peer segment, tips and money exchanges between friends and family are the prime areas where UAE consumers use cash. Aani could be a game-changer in that space by simplifying these payments, skipping the need for cash.