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As a national payment program, Jaywan cardholders get cost benefits too.

The UAE is joining the club of countries with domestic card payment schemes, such as Eftpos in Australia, Elo in Brazil, RuPay in India, and Mada in Saudi Arabia. These schemes provide the national rails to facilitate debit card and credit card payments, similar to Mastercard and Visa for international payments.

What are the advantages of a domestic card payment scheme?

• Lower merchant discount rates compared to international schemes
• Targeting underserved and underbanked consumers and marginal merchants
• Keeping transaction data within national borders and fees within the local economy

However, domestic schemes also face challenges, such as:

• Lower fees restricting innovation and customer reward schemes
• Capabilities on chargebacks, security, and fraud control might be less robust
• International acceptance concerns for global travelers

Introducing Jaywan: A Homegrown Payment Scheme

Jaywan, meaning “precious pearl” in Arabic, is the UAE’s own domestic card scheme launched by Al Etihad Payments, the country’s national payments entity created in 2023 and a subsidiary of the Central Bank of the UAE.

The program enables financial institutions to issue Jaywan-branded payment cards to UAE residents and facilitate transactions across ATMs, point-of-sale terminals, and e-commerce platforms in the country.

Benefits for Stakeholders

• Banks: reduced initial costs for integration and competitive fee structures
• Customers: seamless payment transactions across physical, contactless, and digital channels
• Merchants: widespread access and reach across the UAE through partnerships with leading regional acquirers

A Cashless Future

Domestic card schemes are expected to drive increasing volumes of transactions globally. Regulators are weighing in, requiring data residency from all schemes. Innovations are in the pipeline, including instant peer-to-peer payments, cardless payments, and digital currencies.

In conclusion, Jaywan is poised to revolutionize domestic card payments in the UAE, benefiting merchants and consumers alike. With its launch, the UAE takes a significant step towards a digital-first economy.