UAE Launches Jaywan Domestic Card Scheme, Reducing Reliance on International Networks

Al Etihad Payments has launched Jaywan, the UAE's first domestic payment card scheme, enabling financial institutions to issue locally branded debit, prepaid, and credit cards to UAE residents.

Jaywan is designed to process transactions locally within the UAE's payment infrastructure, reducing the country's reliance on international card networks for domestic transactions. When a Jaywan cardholder makes a purchase at a UAE merchant, the transaction is routed through domestic infrastructure rather than being processed through international networks, resulting in lower costs for both merchants and issuers.

Major UAE banks including Emirates NBD, Dubai Islamic Bank, and Abu Dhabi Commercial Bank began rolling out Jaywan cards in 2024. The cards carry the Jaywan brand for domestic transactions and can be co-branded with international networks for cross-border use, ensuring that cardholders retain global payment acceptance.

The launch of a national card scheme has been a strategic priority for the UAE Central Bank, which views domestic payment processing as essential for both cost efficiency and financial sovereignty. Several Gulf states have pursued similar initiatives, with Saudi Arabia's mada scheme serving as a regional precedent for domestic card infrastructure.

For merchants, Jaywan promises lower interchange fees on domestic transactions compared to rates charged by international networks. For the UAE's financial system, the scheme provides greater control over domestic payment data and reduces foreign currency settlement requirements for local transactions.

Al Etihad Payments, a subsidiary of the Central Bank of the UAE, is responsible for operating the Jaywan scheme and the broader national payment infrastructure.