Market Size of United Arab Emirates Mobile Payments Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 12.30 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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UAE Mobile Payments Market Analysis
The UAE mobile payments market is expected to register a CAGR of 12.3% during the forecast period. The increasing use of mobile devices, open banking, contactless payments, and digital currency are vital drivers propelling the expansion of the market studied.
- Digital banking has evolved significantly in the United Arab Emirates. Due to the high penetration rate of smartphones, increased rate of innovations, and wide availability of sophisticated digital infrastructure, mobile banking in the United Arab Emirates is at an advanced stage compared to other major countries. According to datareportal, the internet penetration rate in the United Arab Emirates stood at 99.0% of the total population at the beginning of 2022.
- Furthermore, government initiatives toward a digitalized and cashless country, the emergence of Bring Your Own Device (BYOD), an increase in the use of smartphones, and a vast number of individuals without bank accounts are some of the crucial factors that are expected to offer lucrative growth opportunities to mobile wallet providers in the United Arab Emirates during the forecast period.
- With the adoption of technological advancements, consumers and businesses follow a contactless payment approach that is considered a convenient, fast, and cost-saving mode of transaction. To promote a cashless society through various smart government initiatives, the Central Bank of UAE supported the launch of the Emirates Digital Wallet, which is expected to revolutionize the payments landscape. Similarly, Netcetera enables secure payments in the United Arab Emirates with PayTabs using a 3DS server solution. Such technological advancements allow convenient and secure mobile payments.
- However, various safety-related concerns related to mobile payments are holding back the growth of the UAE mobile payments market. Furthermore, the surge in data breaches and several security-related issues in mobile payment can impede the development of the market.
- Due to the advent of the COVID-19 pandemic, the overall demand for contactless payments, especially in retail stores and restaurants, increased drastically in the United Arab Emirates to avoid spreading the virus. Since there lies no touch in the overall payment process, these contactless payment solutions provided by mobile wallets offer a safer option in terms of carrying traditional plastic credit cards and handling cash. Hence, the total adoption rate of mobile payments accelerated after the COVID-19 pandemic. Post-pandemic, the intention to continue using mobile payment services and to recommend these to others has drastically increased, making the United Arab Emirates a cashless society.
