UAE Payments Market Size
| 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 |
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.
UAE Payments Market Trends
This section covers the major market trends shaping the UAE Payments Market according to our research experts:
Significant Growth in Payment is Expected due to Digital Transformation
- Digital transformation has taken over since the Covid - 19 pandemic. Various organizations switched to online business by eliminating the need to come out of the home during the pandemic. Factors like increased demand for the internet and smartphones have boosted the Payment market in the United Arab Emirates.
- United Arab Emirates government has been introducing various strategies for further growth and expansion of digitalization. For instance, Abu Dhabi Economic Vision 2030 aims to adopt and invest in ICT infrastructure. This will further help the country to increase internet penetration and will also boost the digital infrastructure. This will benefit various payment gateways by making the process easy and faster.
- In order to increase the growth of digital banking, robust regulatory frameworks are also being launched. For instance, The Central Bank of the UAE (CBUAE) announced its 2023-2026 strategy. The strategy includes issuing a digital currency and driving digital transformation in the nation's financial services sector using big data solutions and AI and creating secure financial cloud infrastructure.
- The payment services in UAE are partnering with software technology companies to get aligned with digital transformation and adopt innovative solutions driven by advanced technologies. For instance, Abu Dhabi Islamic Bank (ADIB), a UAE-based Islamic financial institution, has announced it is a collaboration with IBM to accelerate its transition to become a modern, digitally-led Islamic bank, using IBM hybrid cloud solutions based on Red Hat OpenShift. The transformation complements the bank's Digital Transformation strategy, which leverages Big Data, analytics, and Artificial Intelligence (AI) to deliver operational and financial benefits.
- Various organizations are joining forces to accelerate digitalization in the UAE. In June 2021, Etisalat announced a partnership with Ericsson to deploy a 5G millimeter wave (mmWave) across its commercial network. TDRA (Telecommunications and Digital Government Regulatory Authority) is the first to allocate 5G millimeter-wave across the country. This will enable the country to facilitate its payment market with a high-speed network with low latency.
- The United Arab Emirates has gained several recognitions in the field of digital transformation. For instance, according to the UAE Digital Transformation Enablers Report 2021, the UAE has been ranked among the world's best countries in digital government transformation.
Retail Industry to Drive Market Growth
- The retail industry has observed tremendous changes in the United Arab Emirates. It continues to evolve in response to emerging technology. Retail shopping has been substantially influenced by emerging business trends and changing customer behavior.
- Many payment and financial services vendors are entering the UAE market due to the growing customer behavior towards internet retailing. In April 2021, Stripe, an Irish-American financial services and software-as-a-service company that builds economic infrastructure for the internet, announced its official launch in the UAE market. This launch will provide the expansion of the company in the Middle East. Stripe is also launching a new UAE office in Dubai Internet City, which will be the company's first office in the region.
- Startups are entering the UAE Payment market, which is further expected to drive the payment market in the region. For instance, a Dubai-based entrepreneur has launched an online activewear brand, F5's website. The online shop will provide organic, sustainable, and vegan streetwear. The collection will include joggers, hoodies, tees, and other related products. The purchase of products from the online retail store will further support the increasing payments in the country.
- Moreover, various market leaders are expanding their business in this region so as to derive profit from the customer's shopping preferences. For instance, In November 2021, a Dubai-based quick-commerce startup, YallaMarket, announced a plan for expansion in the United Arab Emirates and will be stepping into Saudi Arabia and Qatar in the coming year to scale its grocery shopping. This expansion will allow the customers to explore another grocery shopping option which, as a result, will increase the usage of payment services in the market.
- The retail market in the United Arab Emirates witnessed continual growth. In September 2021, Majid Al Futtaim, an Emirati holding company, launched its checkout-free convenience store in Dubai, UAE. The store sells more than 1,300 items, including beverages, snacks, packaged food, ready meals, and other necessities.
UAE Payments Industry Overview
The United Arab Emirates payments market is competitive and fragmented with the presence of significant market players such as Telr Pte Ltd., Cashu FZ LLC, MasterCard Inc, Visa Inc., and American Express Co. The companies are introducing new services and continuously investing in making partnerships and acquisitions along with product development to increase the market share.
- In November 2021 -Telr announced that the company had raised USD 15 million from the India-based Merchant payments platform, Cashfree. This strategic investment in Telr will allow the company to introduce its offerings in the MENA region, utilizing Telr's strong presence and payment infrastructure.
- In February 2022, Network International partnered with Amazon Payment Services to provide online payment solutions to merchants in the United Arab Emirates. Network International helps enable digital commerce in the Middle East and Africa. The firms are collaborating to provide merchants with Amazon Payment Services' gateway and services, which include EPP and increased fraud monitoring, according to a news statement.
UAE Payments Market Leaders
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Telr Pte Ltd.
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Cashu FZ LLC
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Checkout Ltd
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Amazon Payments, Inc.
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2Checkout.com, Inc.
*Disclaimer: Major Players sorted in no particular order
UAE Payments Market News
- In May 2022 - Nayax Ltd, a commerce enablement and payments platform, announced a partnership with Network International, the provider of digital commerce across the Middle-East and Africa (MEA). This partnership will help the company to expand its business and customer base in the MEA region.
- In February 2022 - Apple Inc, has announced its plan to soon introduce its store in Al Maryah Island, Abu Dhabi, making it the tech company's fourth outlet in the UAE market. This store will strengthen the footprint of the company in the UAE and will, in turn, derive the payment market in the country.
UAE Payments Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Stakeholder Analysis
4.3 Industry Attractiveness-Porter's Five Force Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Evolution of the payments landscape in the country
4.5 Key market trends pertaining to the growth of cashless transaction in the country
4.6 Impact of COVID-19 on the payments market in the country
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 High Proliferation of E-commerce, including the rise of m-commerce and cross-border e-commerce supported by the increase in purchasing power
5.1.2 Enablement Programs by Key Retailers and Government encouraging digitization of the market
5.1.3 Growth of Real-time Payments, especially Buy Now Pay Later in the country
5.2 Market Challenges
5.2.1 Lack of a standard legislative policy remains especially in the case of cross-border transactions
5.3 Market Opportunities
5.3.1 Move towards Cashless Society
5.3.2 New Entrants to Drive Innovation Leading to Higher Adoption
5.4 Key Regulations and Standards in the Digital Payments Industry
5.5 Analysis of major case studies and use-cases
5.6 Analysis of key demographic trends and patterns related to payments industry in the United Arab Emirates (Coverage to include Population, Internet Penetration, Banking Penetration/Unbanking Population, Age & Income etc.)
5.7 Analysis of the increasing emphasis on customer satisfaction and convergence of global trends in the United Arab Emirates
5.8 Analysis of cash displacement and rise of contactless payment modes in the United Arab Emirates
6. Market Segmentation
6.1 By Mode of Payment
6.1.1 Point of Sale
6.1.1.1 Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
6.1.1.2 Digital Wallet (includes Mobile Wallets)
6.1.1.3 Cash
6.1.1.4 Others
6.1.2 Online Sale
6.1.2.1 Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
6.1.2.2 Digital Wallet (includes Mobile Wallets)
6.1.2.3 Others (includes Cash on Delivery, Bank Transfer, and Buy Now, Pay Later)
6.2 By End-user Industry
6.2.1 Retail
6.2.2 Entertainment
6.2.3 Healthcare
6.2.4 Hospitality
6.2.5 Other End-user Industries
7. Competitive Landscape
7.1 Company Profiles
7.1.1 Telr Pte Ltd
7.1.2 Cashu FZ LLC
7.1.3 Checkout Ltd
7.1.4 Amazon Payments Inc.
7.1.5 2Checkout.com Inc.
7.1.6 Infibeam Avenues Limited (CC Avenues)
7.1.7 PayTabs LLC
7.1.8 PayCaps.in
7.1.9 HyperPay Inc.
7.1.10 Stripe Inc.
- *List Not Exhaustive
8. Investment Analysis
9. Future Outlook of the Market
UAE Payments Industry Segmentation
Payment is the transfer of money and goods in exchange for goods and services that the involved parties agree upon. Payment can be made in the form of services exchanged, cash, wire transfer, cheque, credit card, and debit card.
The United Arab Emirates Payment Market is Segmented by Mode of Payment (Point of Sale (Card Payments, Digital Wallet, Cash), Online Sale (Card Payments, Digital Wallet)), and by End-user Industries (Retail, Entertainment, Healthcare, Hospitality). The report covers the trends of payments in the United Arab Emirates along with the factors impacting the studied market growth.
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UAE Payments Market Research FAQs
What is the current United Arab Emirates Payment Market size?
The United Arab Emirates Payment Market is projected to register a CAGR of 13.67% during the forecast period (2024-2029)
Who are the key players in United Arab Emirates Payment Market?
Telr Pte Ltd., Cashu FZ LLC, Checkout Ltd, Amazon Payments, Inc. and 2Checkout.com, Inc. are the major companies operating in the United Arab Emirates Payment Market.
What years does this United Arab Emirates Payment Market cover?
The report covers the United Arab Emirates Payment Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United Arab Emirates Payment Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the major challenges faced in the United Arab Emirates (UAE) Payment Market?
The major challenges faced in the United Arab Emirates (UAE) Payment Market are a) Uneven access to reliable internet or mobile connectivity in certain areas could limit the adoption of digital payment solutions b) Ensuring robust security measures for online and digital transactions is crucial to build trust and encourage wider acceptance
UAE Payments Industry Report
The United Arab Emirates (UAE) payment market is undergoing significant growth, driven by rapid digital adoption and a shift towards innovative payment solutions such as blockchain and digital wallets. According to the United Arab Emirates Cards Market Report, there is a rising consumer preference for digital and contactless payments, spurred by high smartphone penetration, a tech-savvy population, and robust government support for digital initiatives. The market features a mix of traditional financial institutions and fintech startups, creating a competitive landscape that fosters continuous innovation. Key regions like Dubai and Abu Dhabi lead in digital payment infrastructure, supporting the market's expansion. This growth is further detailed in Mordor Intelligenceā¢ Industry Reports, which provide statistics on market share, size, and revenue growth rate, along with a market forecast outlook and historical overview. For a deeper insight, you can download a free report PDF sample.
