Digitalisation set to boost UAE payment revenues to $18.7bln

Digitalisation set to boost UAE payment revenues to $18.7bln

The fast-paced transformation of the financial services landscape in the UAE is expected to significantly boost the nation’s payment revenues to $18.7 billion by 2031 from $3.0 billion in 2021.

Consequent to the ongoing efforts by the UAE to accelerate digitalisation of its financial services ecosystem, more than half of consumers in the country are expected to go cashless by 2024 compared with the global average of 41 per cent. The country is also pressing ahead with initiatives to implement a financial market infrastructure that will enable instant payments in the Emirates, the Central Bank of the UAE has said.

The payments industry in the UAE, according to a study by Boston Consulting Group (BCG), is expected to record a compound annual growth rate (CAGR) of 7.7 per cent between 2021 and 2031 on revenues. Among the areas of particular strength will be revenues from credit cards, debit cards, and current accounts.

“The UAE continues to see robust growth in payments and fintech activity in general. This year alone we have seen the launch of multiple digital banks as well as specialized payments players,” said Mohammad Khan, managing director & partner, BCG.

He said a combination of drivers such as the country’s young, tech-savvy,