United Arab Emirates (UAE) Digital Payment Market Overview, 2029

United Arab Emirates (UAE) Digital Payment Market Overview, 2029

The UAE's digital payment market boasts a fascinating history. While cash was traditionally king, a surge in internet penetration and a thriving fintech scene planted the seeds for change. The government's push for a cashless society further accelerated this shift, especially during the pandemic. This period saw a rise in contactless payments and a growing trust in digital wallets. Culturally, the UAE is embracing the convenience and security offered by digital payments. Tech-savvy residents are turning to mobile wallets like klip, which is projected to dominate the market by 2025. This trend aligns with the growing popularity of e-commerce, where digital wallets offer a seamless checkout experience.

According to the research report ""United Arab Digital payment Market Research Report, 2029,"" published by Actual Market Research, the United Arab Emirates Digital payment market is projected to grow with more than 20% CAGR from 2024 to 2029. Several key drivers are propelling the digital payment market forward. The UAE's high internet penetration rate provides the necessary infrastructure for online transactions. Furthermore, a booming fintech industry is constantly innovating new payment solutions, catering to the evolving needs of consumers and businesses. Finally, the government's vision of a cashless society by 2030 is a strong motivator for stakeholders to invest in and adopt digital payment technologies.

However, challenges still exist. Cash remains deeply ingrained in certain sectors of society, and building trust in digital transactions is an ongoing process. Security concerns around data breaches and fraud require constant vigilance from financial institutions and technology providers. Additionally, the relatively new ""Buy Now, Pay Later"" (BNPL) sector needs regulations to ensure responsible lending practices and consumer protection.

By offerings, the market splits into solutions and services. Solutions encompass the hardware and software infrastructure that enables digital payments, like point-of-sale systems and mobile wallets. Services, on the other hand, focus on the activities that facilitate transactions, such as fraud prevention, payment processing, and data analysis.

Transaction types are another crucial segmentation factor. Domestic transactions occur within the UAE, while cross-border transactions involve sending or receiving money internationally. Understanding the volume and growth potential of each type is essential for payment providers.

Payment modes offer a further layer of segmentation. Cards, including debit and credit cards, remain a dominant mode. However, ACH transfers (direct bank transfers) and digital wallets are gaining traction, especially with the rise of mobile payments. It's also important to consider other emerging payment modes like contactless payments using NFC technology and biometric authentication methods. Bank transfers, though not strictly digital, still hold a role, particularly for larger transactions.

The final segmentation lens focuses on the industries utilizing these services, also known as verticals or end-user industries. The Banking, Financial Services, and Insurance (BFSI) sector is a major player, followed by industries like healthcare, IT & Telecom, media & entertainment, and retail & e-commerce. Each industry has its specific payment needs and preferences. Transportation and other sectors also contribute to the overall market size.

The UAE government champions a cashless society through robust policies that stimulate innovation while upholding security measures. Spearheaded by the Central Bank of the UAE (CBUAE), regulations encompass all payment service providers (PSPs), spanning e-wallets, mobile wallets, and money transfer services, aimed at safeguarding consumer rights, maintaining financial stability, and curbing fraud. Emphasizing data security, stringent privacy regulations mandated by the CBUAE mandate adherence to global standards for data storage and encryption, instilling user confidence crucial for market expansion. Fostering a conducive environment for innovation, the regulatory framework offers flexibility, with regulatory sandboxes allowing fintech startups to trial their solutions under controlled conditions before full-scale deployment, thus promoting the emergence of secure digital payment platforms. Despite the benefits, navigating the UAE market requires PSPs to navigate intricate compliance procedures, including Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols, crucial for mitigating financial risks and safeguarding the financial system's integrity.

The UAE's digital payment market presents a vibrant landscape with immense potential. As the government, financial institutions, and tech companies work together, the UAE is poised to become a leader in the cashless revolution.
Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Digital Payment market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Offering
• Solutions
• Services

By Transaction type
• Domestic
• Cross Border

By Payment Type
• Cards
• ACH Transfer
• Digital Wallet
• Other Payment Modes

By Vertical
• BFSI
• Healthcare
• IT & Telecom
• Media & Entertainment
• Retail & E-commerce
• Transportation
• Others

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Digital Payment industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Digital Payment market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Offering
• Solutions
• Services

By Transaction type
• Domestic
• Cross Border

By Payment Type
• Cards
• ACH Transfer
• Digital Wallet
• Other Payment Modes

By Vertical
• BFSI
• Healthcare
• IT & Telecom
• Media & Entertainment
• Retail & E-commerce
• Transportation
• Others

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Digital Payment industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.