United Arab Emirates Real Time Payments Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

United Arab Emirates Real Time Payments Market is Segmented by Type of Payment (peer-to-peer (P2P), peer-to-business (P2B)).

Market Snapshot

United Arab Emirates Real Time Payments Market
Study Period: 2020-2027
Base Year: 2021
CAGR: 14.56 %

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Market Overview

The United Arab Emirates Real-Time Payments Market is expected to grow at a CAGR of 14.56% over the forecast period (2022 - 2027). The majority of the United Arab Emirates (UAE) market depends on cash-based payments. With the shift of consumers towards digital payments and increased internet penetration, the real-time payments market is growing rapidly.

  • Real-Time payments are instant payment systems that are initiated and settled at the same time of payment. The real-time payment is available throughout the weekdays, including weekends and holidays. These payments provide end-to-end communication and solve the issues of transparency and delay in the payments market.
  • The reliance on traditional banking has fallen dramatically in the past, with customers demanding more convenience and flexibility. There has been an emergence of new instant payment providers. These factors are driving the demand for the real-time payments market in the United Arab Emirates.
  • The government is taking initiatives in the country to promote the usage of real-time payment. For instance, In 2021, the Central Bank of the UAE (CB UAE) introduced NPSS (National Payment Systems Strategy) implemented NPSS (National Payment Systems Strategy) which is designed to make payment systems universally interoperable and foster the transition to a cashless society built around real-time – also known as instant – payments.
  • In February 2022, the Central Bank of the UAE (CBUAE) selected Accenture to lead a consortium of companies to help execute its National Payment Systems Strategy. 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.
  • Similarly, in November 2021, the National Payments Corporation of India (NPCI) arm NPCI International Payments Ltd (NIPL) signed a memorandum of understanding for a mobile-based real-time payment system in the UAE. It will also be facilitating UPI payments in sectors such as jewellery, supermarkets, and duty-free retailers.

Scope of the Report

A real-time payments system comprises technology that allows the transfer of money instantaneously between banks and banking systems.

The study tracks the current market scenario and the key developments in the Real-Time Payment market in the United Arab Emirates. Given the evolving nature of the market landscape, the major real-time payment providers operating in the country are analyzed in detail, based on their current business model. The United Arab Emirates Real-Time Payments Market is Segmented by Type of Payment ( peer-to-peer (P2P), peer-to-business (P2B)).

By Type (Market share in percentage based on relative adoption)
P2P
P2B

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Key Market Trends

Significant Growth in Real Time Payment is Expected due to Digitalization

  • Digital transformation has taken over since the Covid - 19 pandemic. Various organizations shifted to online business by adopting instant retail and real-time payment facilities. Moreover, factors like increased demand for the internet and smartphones have boosted the real-time payment market.
  • According to the World Bank's GovTech Maturity Index 2021, UAE has been ranked among the world's best countries in digital government transformation. The index measures the maturity levels of technology modern on reliance and transformation in government work in 198 countries. As digitalization has taken center stage in the country, real time payments is expected to witness significant adoption with declining dependency on cash.
  • United Arab Emirates' government has been introducing various strategies for further growth and expansion of digitalization in the country. For instance, Abu Dhabi Economic Vision 2030 aims to adopt and invest in ICT infrastructure. This will further help the country increase internet penetration and boost the digital infrastructure.
  • In April 2022, the government launched the Digital Economy Strategy with the aim to double the contribution of the digital economy to the UAE's gross domestic product (GDP) from 9.7% as of April 2022 to 19.4% within ten years. The strategy incorporates over 30 initiatives and programs focusing on six sectors and five new areas of development.
United Arab Emirates Real Time Payment Market

P2P is Expected to Hold a Major Share

  • Market players are launching various payment services to expand real-time payment use across the country. For instance, In April 2022, Careem Pay introduced a new digital wallet that stores real money for customers across the UAE, along with a new peer-to-peer (P2P) transfer product that allows users to send, request, and receive money easily through personal QR code, phone number or a personal payment link. The integration of digital wallets with real time payments is expected to drive the growth of the P2P segment.
  • Cashless payments are growing with the shift in buying behavior of customers and the adoption of digital payments. Companies are promoting real-time payment in the country. For instance, In February 2022, Ziina, a Dubai-based fintech startup, announced the launch of its new P2P digital wallet app that allows instant cash transfer for UAE customers.
  • Moreover, organizations are collaborating with banks in order to achieve the rising demand for real-time payments in the country. For instance, In January 2022, ACI worldwide announced its partnership with banks to Integrate UAE’s Instant Payments by connecting banks to United Arab Emirates (UAE) Instant Payments Platform (IPP). Such initiatives are driving the easy implementation of the P2P real-time payment system.
United Arab Emirates Real Time Payment Market

Competitive Landscape

United Arab Emirates Real-Time Payments Market is moderately competitive in nature. The companies operating in the market are executing mergers and acquisitions and strategic partnerships to gain market share. Major players include Telr Pte Ltd., Amazon Payments, Inc, and Checkout Ltd., among others. A few recent developments are:

  • June 2022 - Mastercard launched its Digital First program to provide innovative and secure payment services. The initiative offers consumers the ease of applying online, instant digital card issuance, real-time card management, and secure, straightforward online payments. This is further strengthening the company's capabilities throughout Eastern Europe & MEA region.
  • January 2022 - Nium, Global payments, and cards issuance company, announced a strategic partnership with Al Mulla Exchange to enhance the operation of transfers for Al Mulla Exchange clients to key markets and regions globally. Nimu will offer the company multiple real-time payment corridors, B2B, B2P, P2P, and P2B cross-border payments in all major currencies.

Recent Development

  • February 2022 - An association of companies led by Accenture was selected by the Central Bank of UAE (CBUAE) to build and operate instant payments platform for the country over the next five years. The new platform lays the groundwork for transforming the financial services ecosystem in the UAE.
  • January 2022 - ACI Worldwide, a global provider of real-time payment software, announced that the company is working with national banks to help connect to the United Arab Emirates' real-time payments scheme set to launch in October 2022. The UAE Instant Payments Platform (IPP) will enable instant transfers between bank accounts, with participation mandatory for all financial organizations in the country.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definitions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness-Porter's Five Force Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers/Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Evolution of the payments landscape in United Arab Emirates

    4. 4.4 Key market trends pertaining to the growth of cashless transaction in United Arab Emirates

    5. 4.5 Impact of COVID-19 on the payments market in United Arab Emirates

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Increased Smartphone Penetration

      2. 5.1.2 Falling Reliance on Traditional Banking

      3. 5.1.3 Ease of Convenience

    2. 5.2 Market Challenges

      1. 5.2.1 Payment Fraud

      2. 5.2.2 Existing Dependence on Cash

    3. 5.3 Market Opportunities

      1. 5.3.1 Government Policies Encouraging the Growth of Digital Paymentis expected to aid the growth of Real Time Payment methods amongst commoners

    4. 5.4 Key Regulations and Standards in the Digital Payments Industry

      1. 5.4.1 Regulatory Landscape Across the World

      2. 5.4.2 Business Models with Potential Regulatory Roadblocks

      3. 5.4.3 Scope for Development in Lieu of Evolving Business Landscape

    5. 5.5 Analysis of major case studies and use-cases

    6. 5.6 Analysis of Real Payments Transactions as a share of all Transactions with a regional breakdown of key countries by volume and transacted value

    7. 5.7 Analysis of Real Payments Transactions as a share of Non-Cash Transactions with a regional breakdown of key countries by volumes

  6. 6. Market Segmentation

    1. 6.1 By Type (Market share in percentage based on relative adoption)

      1. 6.1.1 P2P

      2. 6.1.2 P2B

  7. 7. Competitive Landscape

    1. 7.1 Company Profiles

      1. 7.1.1 ACI Worldwide Inc.

      2. 7.1.2 Volante Technologies Inc

      3. 7.1.3 Fiserv, Inc.

      4. 7.1.4 Mastercard Inc.

      5. 7.1.5 Stripe, Inc.

      6. 7.1.6 Finastra

      7. 7.1.7 Alipay (Ant Financials)

      8. 7.1.8 Paypal Holdings Inc.

      9. 7.1.9 Denarii Cash

      10. 7.1.10 Mashreqbank PSC

    2. *List Not Exhaustive
  8. 8. Investment Analysis

  9. 9. Future Outlook of the Market

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Frequently Asked Questions

The United Arab Emirates Real Time Payments Market market is studied from 2020 - 2027.

The United Arab Emirates Real Time Payments Market is growing at a CAGR of 14.56% over the next 5 years.

ACI Worldwide Inc.​ , Volante Technologies Inc, Fiserv, Inc., Mastercard Inc.​, Stripe, Inc. are the major companies operating in United Arab Emirates Real Time Payments Market.

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