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.
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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United Arab Emirates Payment Market Size Summary
The United Arab Emirates payments market is experiencing significant growth, driven by the rapid adoption of digital and mobile payment solutions. The shift from cash to card and internet-based payments is supported by government initiatives aimed at financial inclusion and the adoption of advanced payment technologies like Europay, MasterCard, and Visa (EMV). The Covid-19 pandemic accelerated this transition, prompting consumers to embrace online shopping and contactless payment methods for their safety and convenience. The UAE government is actively enhancing its payment infrastructure through strategic plans and collaborations with international financial organizations, such as the Central Bank of the UAE's partnership with Accenture to develop a national payments infrastructure. This digital transformation is further bolstered by initiatives like Abu Dhabi Economic Vision 2030, which aims to improve ICT infrastructure and increase internet penetration.
The competitive landscape of the UAE payments market is characterized by the presence of major players like Telr Pte Ltd., Cashu FZ LLC, MasterCard Inc., Visa Inc., and American Express Co. These companies are continuously innovating and expanding their services to capture a larger market share. The market is also witnessing the entry of new startups and international companies, such as Stripe, which are leveraging the growing consumer preference for online retailing. Strategic partnerships and investments, like Telr's collaboration with Cashfree and Network International's partnership with Amazon Payment Services, are facilitating the expansion of digital commerce across the region. The ongoing development of high-speed networks, such as the deployment of 5G millimeter-wave technology, is expected to further enhance the payment ecosystem in the UAE, making transactions faster and more efficient.
United Arab Emirates Payment Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Stakeholder Analysis
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1.3 Industry Attractiveness-Porter's Five Force Analysis
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1.3.1 Bargaining Power of Suppliers
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Threat of New Entrants
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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1.4 Evolution of the payments landscape in the country
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1.5 Key market trends pertaining to the growth of cashless transaction in the country
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1.6 Impact of COVID-19 on the payments market in the country
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2. Market Segmentation
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2.1 By Mode of Payment
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2.1.1 Point of Sale
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2.1.1.1 Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
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2.1.1.2 Digital Wallet (includes Mobile Wallets)
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2.1.1.3 Cash
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2.1.1.4 Others
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2.1.2 Online Sale
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2.1.2.1 Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
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2.1.2.2 Digital Wallet (includes Mobile Wallets)
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2.1.2.3 Others (includes Cash on Delivery, Bank Transfer, and Buy Now, Pay Later)
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2.2 By End-user Industry
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2.2.1 Retail
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2.2.2 Entertainment
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2.2.3 Healthcare
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2.2.4 Hospitality
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2.2.5 Other End-user Industries
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United Arab Emirates Payment Market Size 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.
