The United Arab Emirates (UAE) witnessed a significant increase in real-time payment transactions in 2023, with a growth of 53 per cent compared to the previous year. A recent report by ACI Worldwide in collaboration with GlobalData revealed that the total number of real-time payment transactions in the UAE is projected to reach 162 million by 2028, up from 58 million in 2023. Additionally, the value of transactions facilitated by real-time payments is expected to rise from $43 billion in 2023 to $132 billion by 2028.
Santhosh Rao, the senior vice-president of sales at ACI Worldwide MEASA, emphasized the importance of real-time payments in enhancing liquidity within the financial system and driving economic growth. He highlighted the need for local banks in the GCC region to modernize their infrastructure to fully capitalize on the potential of real-time payments. With real-time payment schemes now operational in every GCC nation, banks are urged to embrace technological advancements to foster innovation and financial inclusion.
The surge in real-time and electronic payments reflects the UAE’s commitment to transitioning towards a cashless economy. Electronic transactions accounted for over 37 per cent of all transactions and 78 per cent of the transaction value in 2023. Real-time payments, although constituting a small percentage of electronic transactions at 4 per cent, are projected to increase to 7 per cent by 2028. The ACI report envisions a future where cash-based transactions will represent only 20 per cent of the total transaction value in the UAE by 2028.
According to the report, successful real-time payment ecosystems rely on active collaboration among banks and emerging market players. Countries like India have set a precedent for innovative real-time payment methods, such as QR codes, mobile apps, and online accounts, driving adoption and usage. Financial institutions in the Middle East are encouraged to study these successful models and leverage valuable insights to develop their own real-time payment solutions. With the Middle East leading the global growth in real-time payments, it is crucial for banks to embrace technological advancements and remain competitive in the evolving financial landscape.
In conclusion, the increasing adoption of real-time payments in the UAE and the broader GCC region signifies a paradigm shift towards digital transactions and a cashless economy. As banks and financial institutions modernize their infrastructure and collaborate with emerging market players, they can unlock the full potential of real-time payments to drive economic growth and financial inclusion. By studying successful models from around the world and innovating new payment solutions, the Middle East has the opportunity to pioneer advancements in real-time payments and shape the future of the digital economy.
