The UAE's card payments sector is projected to reach Dh764.1 billion within the next four years, driven by an escalating trend toward electronic transactions and increased consumer expenditure.
GlobalData, an analytics firm, anticipates a compound annual growth rate of 10.6 percent between 2024 and 2028. Card transactions in the UAE saw a significant surge, rising by 17.7 percent in 2022 and by 14.6 percent in 2023, reaching Dh451.4 billion. This growth has been fueled by a persistent move toward digital payments and an uptick in consumer spending habits.
"While cash remains the dominant mode of payment, there's a notable shift towards card transactions,"
remarked Ravi Sharma, lead banking and payments analyst at GlobalData. He highlighted the UAE's rapidly evolving and innovative payment card market.
"Government and financial institutions' initiatives promoting electronic payments, coupled with expanding payment infrastructure, have spurred consumer adoption of digital transactions,"
Sharma added. He projected continued growth in the UAE's payment card market, driven by government initiatives, consumer preferences, and infrastructure improvements. The market is expected to grow by 13.3 percent, reaching Dh511.4 billion in 2024.
The UAE is rapidly advancing towards digitalizing payments, backed by government and Central Bank initiatives like the Wage Protection System and Financial Infrastructure Transformation Program. This push is evident in the expansion of POS terminals and advancements in card and mobile payments, particularly with the emergence of mobile POS terminals, favored by SMEs for their cost-effectiveness. Additionally, the government's Cashless Dubai initiative aims to transition all transactions to electronic payments. International card spending in the UAE surged by over 25% in 2023, driven by the convenience and security offered by digital payments.
Mastercard reports a significant uptick in card and digital payment transactions in the MENA region, highlighting a substantial shift towards digital payments for everyday expenses. Looking ahead, UAE residents anticipate further growth in cross-border transactions, signaling continued momentum in digital payment adoption.
News Source: Khaleej Times
