The card payments market in the UAE has been experiencing substantial growth, with a 17.7% increase in 2022 and a 14.6% increase in 2023, reaching a total value of Dh451.4 billion. Despite cash remaining a popular payment method, the trend is moving towards electronic payments, with the market expected to reach Dh764.1 billion in four years. GlobalData has predicted a compound annual growth rate of 10.6% between 2024 and 2028, showcasing the growing shift towards digital payments and consumer spending in the UAE.
Ravi Sharma, the lead banking and payments analyst at GlobalData, highlighted the significant growth in the UAE payment card market, attributing it to the government and financial institutions’ efforts to promote electronic payments. Initiatives such as financial inclusion programs and the expansion of payment acceptance infrastructure have encouraged consumers to opt for electronic payments for their daily transactions. The upcoming years are projected to continue this growth trajectory, with the card payments value expected to reach Dh511.4 billion in 2024.
Government initiatives, such as the Wage Protection System and Financial Infrastructure Transformation Program, are aiding in the digitalization of payments in the UAE. The increase in POS terminals and advancements in card and mobile payments are further supporting the shift towards cashless transactions. Mobile POS terminals, in particular, are gaining popularity among SMEs due to their cost-effectiveness compared to traditional POS terminals. Additionally, the Cashless Dubai initiative and other measures are aimed at reducing cash dependence and promoting electronic payments, benefiting card payments in the process.
Mastercard’s general manager for Mena East, J.K. Khalil, emphasized the remarkable growth of digital payments in the UAE, with a significant increase in the usage of international cards in the country. The convenience and security offered by digital payment solutions compared to cash payments have prompted more users and companies to adopt them. Transactions via cards and digital payment solutions in the Middle East and North Africa have surged in both value and volume, indicating a substantial shift towards digital payments for everyday expenses.
Mastercard’s cross-border payments report for 2023 revealed that a considerable percentage of UAE residents anticipate an increase in cross-border transactions in the coming months. This trend further underlines the growing preference for digital payments in the region. With the UAE government’s ongoing initiatives to promote electronic payments and reduce cash dependence, the future of card payments in the country looks promising, with continued growth expected in the coming years.
