Visa Commends Dubai FinTech Summit as Key Driver of UAE's Fintech Growth

Visa, a global leader in digital payments, affirmed that the Dubai FinTech Summit is a pivotal platform for fostering innovation and collaboration in the UAE, enabling more financial technology (fintech) companies to create a comprehensive and advanced financial system that is easily accessible.

Hasan Kazmi, Head of Digital Partnerships for Visa in the Central and Eastern Europe, Middle East, and Africa region, said,

“Despite the global investment decline in financial technology, the UAE has witnessed a surge in investments in this sector.”

In his remarks, Kazmi referenced a report by "Innovate Finance," noting a global decrease of 42% in fintech investments while the UAE saw a remarkable 92% increase, reaching $1.3 billion through 54 deals in 2023. This growth is attributed to favorable regulations and digital banking adoption. He highlighted Visa's three-year partnership supporting the Dubai FinTech Summit, emphasizing Visa's commitment to advancing fintech in the region and empowering digital companies.

Kazmi outlined Visa's initiatives to support fintech startups, including "Visa Everywhere" for global exposure, "Fintech Fast Track" for accelerated onboarding, and "Visa Ready to Launch - VRTL" for simplified payment product issuance. He mentioned Visa's collaborations with regional fintechs like "AlaanPay" for AI-supported expense management and "Tarabut Gateway" for enhancing customer experiences through open banking.

Kazmi highlighted the growth of digital payments in the UAE market, noting that card payments were the predominant online method, accounting for 48% of transactions, followed by digital wallets at 23%. He confirmed the increasing preference for mobile payments at point-of-sale terminals, with mobile payment usage rising from 28% in 2020 to 41% in 2023. This trend reflects Emirati consumers' shift towards convenient and secure payment methods, indicating a growing reliance on mobile payment solutions.

Regarding the volume of digital payments using cards compared to cash payments, Kazmi said,

“Digital payments occupy a leading position in the UAE, with cards accounting for most payment wallets. However, nearly 20 percent of transactions are still done in cash.”

He confirmed the presence of a robust financial system in the UAE that is more than capable of handling local and international payments.

He noted Visa’s role in facilitating regional, international, and cross-border transactions seamlessly and processing up to 76,000 transactions per second globally and within moments. Visa can process payment data, route them between parties, and allow transactions with risk management across 200 countries and regions, he added.

Kazmi noted the rapid growth of the electronic payments market in the Middle East and UAE, with significant expansion across sectors like card-based payments, e-commerce, and mobile payments. He emphasized the pivotal role of digital wallets in this growth trajectory, highlighting their status as the fastest-growing online payment method regionally and globally. In 2023, digital wallets accounted for 23% of e-commerce spending in the Middle East and Africa, experiencing a 35% year-on-year increase in transaction value. Kazmi anticipates further growth in the electronic payments market, driven by factors like technological innovation, e-commerce expansion, and evolving consumer preferences towards non-cash transactions.

News Source: Emirates News Agency