Fintech firms set to reap dividends as UAE’s digital payments market booms

Fintech firms set to reap dividends as UAE’s digital payments market booms

The digital payments market in the UAE is on target to grow at a compound annual growth rate of 8.02 per cent to $39.13 billion by 2027, driven by the increasing adoption of e-commerce, mobile payments, and contactless payments, according to industry experts. This year, the UAE’s digital payments market is projected to reach $28.74 billion, while globally, the total transaction value in the sector is projected to hit $9.46 trillion, data provided by Statista shows. Total global digital transaction value is expected to show a CAGR of 11.80 per cent resulting in a projected total amount of $14.78 trillion by 2027. A recent study released by Amazon Payment Services said that digital payments across key sectors in the UAE are expected to increase at a CAGR of 18.3 per cent from 2021 to 2023. Internet penetration in the UAE is among the highest in the Mena region, with the percentage of the population using the Internet estimated at 329 per cent. Over the past two years, the UAE’s digital payments penetration has been growing at over 20 per cent CAGR, paving the road for fintech firms and payment aggregators to reap dividends, according to the payment infrastructure company, Infbeam