Market Size of United Arab Emirates Payment Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 13.67 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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UAE Payments Market Analysis
The United Arab Emirates Payment Market is expected to grow at a CAGR of 13.67% over the forecast period (2022 - 2027). The payment services worldwide are rapidly moving towards adopting mobile payment applications, such as Samsung Pay, Mastercard, Apple Pay, and American Express, to accept and transfer payments, and the United Arab Emirates is no way behind. With increasing internet penetration and rapid growth in online retailing, this trend is expected to continue over the forecast period.
- The customers in the United Arab Emirates (UAE) are dependent on cash payments as they believe that cash is a safer and quick payment option. However, card and internet-related payments are increasing, supported by government financial inclusion programs, the adoption of Europay, MasterCard, and Visa (EMV), promotional campaigns by financial institutions, and contactless technology.
- The Covid-19 pandemic, along with the strict government regulations for the shutdown of physical stores and cashless payment, has reinforced major market players to shift to online stores and payment systems. The transition of switching from physical stores to online shopping has created opportunities for payment players in the United Arab Emirates.
- The government of the UAE is also taking several steps in order to boost its payment systems. For instance, The Ministry of Finance (MoF) has developed a Strategic Plan for 2017-2021. The strategy also includes the development and improvement of relations with international financial organizations and institutions. Such strategies will help the country in enhancing its payment systems.
- Moreover, In February 2022, the Central Bank of the UAE (CBUAE) selected Accenture to head up a consortium to support and develop a national payments infrastructure in the United Arab Emirates that will allow next-generation payments. In collaboration with SIA, now part of Nexi Group, and G42, Accenture will build and operate the National Instant Payment Platform (IPP) over the next five years.
- According to the findings of a Visa Stay Secure consumer survey conducted in June 2020 in collaboration with Dubai Economy and Dubai Police, 49% of UAE consumers surveyed have increased their online shopping as a result of the pandemic, with three out of five (61 percent) now using cards or digital wallets to make online payments rather than opting for cash on delivery. The main reasons for their growing preference for online payments were improved faith in the safety, speed, and convenience of contactless payments.
