'Aani' digital platform makes it easier for UAE's micro-businesses to tap instant payments
Payments done in seconds using QR codes is UAE's new micro-businesses want
Dubai: Instant is the theme as the ‘Aani’ payment platform starts to build up acceptance with UAE consumers and retailers. And it’s proving to be a hit with banks too, as they provide the platform to make those payments happen in a matter of seconds.
“We have enabled Aani to be accessible when you want to pay for goods and services, especially for smaller merchants who may not currently be enabled to accept digital payments,” said Jan Pilbauer, CEO of Al Etihad Payments, part of the UAE Central Bank.
“These merchants will be able to print a static QR code, similar to what we’ve seen in other parts of the world.
“You walk by, scan it with your Aani app or banking app, and pay the merchant in real-time.”
Since October 2023, more than 1 million customers and 80,000 merchants have enrolled in the program. And more of the UAE's newly created businesses are starting to find that Aani serves their purpose quite well.
All in a matter of seconds
For micro and small businesses, enabling Aani payments for their services comes as a cost-effective option compared to the upfront investments – and recurring costs - needed to install full-scale digital payment mechanisms. All they need is the QR code and the payment gets made. Instantly.
Merchants will be able to print a static QR code - (the shopper) walks by, scans it with your Aani app or banking app, and pay the merchant in real-time
According to consultants, consumer-focused startups would be the biggest beneficiary from signing up for Aani. "You have clear examples of how such payment systems have revolutionised easy and instant transactions for micro-businesses in India and other Asian markets," said a financial services industry source.
"The UAE's digital payment gateways are already well-established with businesses, but for newly created micro-businesses - a cafe, for instance - Aani can have a big role to play."
The Aani payment option is being ‘progressively rolled out’ to merchants by acquirers (the payment processing companies such as Network International and Magnati) and by the banks.
Aani was officially rolled out in October 2023, but it is now that some serious traction is building up on acceptance and usage.
In the pilot phase, Aani had nine participants. “Since then, Aani has expanded to include about 50 licensed financial institutions (LFIs) and we have enrolled over 1 million users from these institutions,” said Pilbauer.
Peer-to-peer payoff
For UAE residents, Aani can serve multiple needs. Sure, there is the payment to the merchant or service provider. But it can also serve the purpose of paying off a friend or relative in ‘real-time’.
“Aani is a way to pay in seconds, drawing funds from your bank account, wallet, or any other source of value to another account in a matter of seconds,” said Pilbauer.
“The payment either succeeds or fails – (but) with no pending payments that leave you in an awkward situation. That's the person-to-person aspect, which is exciting and innovative.
“Aani is the UAE instant payment infrastructure, but it is the banks that integrate Aani into their systems and provide Aani’s services to their customers.
“Aani facilitates the payments network - but the banks play a crucial role in ensuring smooth adoption and implementation. By working in partnership, we ensure that Aani’s functionality is seamlessly incorporated into their digital offerings, enabling customers to enjoy instant payments across the UAE.”