United Arab Emirates Payment Market

United Arab Emirates Payment Market Size Insights Forecasts to 2035

• United Arab Emirates Payment Market Size 2024: USD 230.9 Bn
• United Arab Emirates Payment Market Size 2035:  USD 665.2 Bn
• United Arab Emirates Payment Market CAGR 2024: 10.1%
• United Arab Emirates Payment Market Segments: Mode of Payment, Application.

The UAE payment market includes digital and traditional transaction systems through its support of card networks and mobile wallets and instant payments which Aani provides and its domestic payment systems which include Jaywan and BNPL and its cross-border payment solutions. The system provides support for retail and e-commerce and remittances and B2B operations within an economy that uses digital technologies and has almost complete smartphone usage and experiences high remittance activity from expatriates. The system requires contactless and real-time and secure and interoperable payment methods which meet the Central Bank of UAE (CBUAE) regulations.

 

The UAE payment market is supported by the Financial Infrastructure Transformation (FIT) Programme and Open Finance and National Payments Strategy, which provide government programs that deliver regulatory framework and infrastructure funding support. Digital Dirham pilots together with AI and biometric improvements and worldwide system connections will create future growth opportunities.

 

The UAE payment market is driven by government-led cashless economy goals, which include the Dubai Cashless Strategy that plans to reach 90 per cent cashless payments by 2026, together with the launch of Aani instant platform and Jaywan domestic cards and the rapid e-commerce growth and fintech innovation drive market development. The market shows strong demand for mobile and digital wallets together with real-time payment systems, as tourism activities increase and expatriates send back remittances.

 

Market Dynamics of the United Arab Emirates Payment Market:

The UAE payment market is driven by the UAE's cashless economy drive through Central Bank Financial Infrastructure Transformation Program, which includes Aani instant payment system and Jaywan domestic card system, leading to fast digital payment system adoption across the country. The combination of smartphone penetration and growing e-commerce market leads to increasing mobile wallet usage and contactless point-of-sale payment transactions. The fintech sector experiences growth because of high expatriate remittances, increasing tourism activities, and regulatory sandboxes that support innovation. The strong consumer preference for contactless payments which use biometric technology creates better user experiences and drives market growth.

 

The challenges faced by the market include rising cyberattacks/fraud that target digital channels, demanding advanced security investments. Global companies like Visa and Mastercard together with local businesses create intense competition which reduces profit margins. The adoption process faces two main challenges which include the need for regulatory compliance and data residency requirements together with the difficulties of transitioning from existing systems and building customer trust in new technologies.

 

The outlook for the UAE payment market shows excellent prospects because the Digital Dirham CBDC rollout is expected to occur and Open Finance frameworks continue to expand and 5G networks will combine with AI-powered systems to transform real-time embedded payment systems. The demand will remain strong because e-commerce continues to expand and BNPL services gain more users and cross-border systems achieve better interchangeability through UPI-style connections and smart city projects. The combination of large fintech venture capital funding and national goals for cashless payments and accessible financial services will create a payment system that provides premium security and seamless integration for retail and remittance and B2B business operations.

 

Market Segmentation

The United Arab Emirates payment market share is classified into payment and application.

 

By Mode of Payment:

The United Arab Emirates payment market is divided by payment method into card payments, digital wallets, bank transfers, instant payments, BNPL, and other payment options. Among these, card payments together with digital wallets dominated in recent data and are expected to maintain strong growth during the forecast period. The main factors driving this include widespread contactless payment acceptance, very high smartphone penetration, the launch of the Aani payment system enabling instant payments, and rising demand for flexible and interest-free instalment options through BNPL, particularly among younger consumers.

 

By Application:

The United Arab Emirates payment market is divided by application into POS/retail, e-commerce, P2P, cross-border/remittances, B2B, and others. Among these, POS/retail dominated in recent data and is anticipated to grow at a notable rate during the forecast period. The main factors driving this include increased tourist arrivals, strong daily consumer spending across malls and hospitality, widespread availability of contactless/NFC terminals, and frequent in-person purchases by expatriates, while e-commerce follows closely due to rapid online retail expansion, one-click checkout implementation, wallet tokenisation, and high digital usage among technology-versed local residents, and cross-border/remittances also hold a prominent share because of large annual transfers sent by more than 8 million expatriates supported by instant platforms, competitive corridors, and mobile wallet features that enable cost-effective international transactions.

 

Competitive Analysis:

The report offers the appropriate analysis of the key organisations/companies involved within the United Arab Emirates payment market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market. 

 

Top Key Companies in United Arab Emirates Payment Market:

• Al Etihad Payments
• Network International
• First Abu Dhabi Bank
• Emirates NBD
• Mashreq Bank
• Visa
• Mastercard
• Checkout.com
• Stripe
• Amazon Payment Services
• Others

 

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

 

Market Segment

This study forecasts revenue at the UAE, regional, and country levels from 2020 to 2035. Decisions Advisors has segmented the United Arab Emirates payment market based on the below-mentioned segments:

 

United Arab Emirates Payment Market, By Mode of Payment

• Card Payments
• Digital Wallets/Mobile Payments
• Bank Transfers
• Instant/Real-Time Payments
• BNPL
• Others

 

United Arab Emirates Payment Market, By Application

• POS/Retail
• E-commerce
• P2P
• Cross-Border/Remittances
• B2B
• Others

 

FAQ

 

1. What is the size of the United Arab Emirates payment market in 2024?

The United Arab Emirates payment market was valued at USD 230.9 billion in 2024. The market includes card payments, digital wallets, bank transfers, instant payments, BNPL services, and cross-border transaction systems operating under the Central Bank of UAE (CBUAE) framework.

 

2. What is the projected size of the United Arab Emirates payment market by 2035?

The United Arab Emirates payment market is projected to reach USD 665.2 billion by 2035, growing at a CAGR of 10.1% during 2025–2035. Growth is supported by the cashless economy strategy, instant payment platforms, and rapid e-commerce expansion.

 

3. What are the key drivers of the United Arab Emirates payment market?

The United Arab Emirates payment market is driven by: government-led cashless economy initiatives, the Financial Infrastructure Transformation (FIT) Programme, launch of the Aani instant payment platform, introduction of Jaywan domestic card scheme, rising smartphone penetration, strong e-commerce growth, high expatriate remittance volumes, increasing adoption of contactless and mobile payments.

 

4. Which payment method dominates the United Arab Emirates payment market?

Card payments and digital wallets dominate the United Arab Emirates payment market. Over 84% of transactions are contactless, and smartphone penetration exceeds 95%, driving mobile wallet and NFC-based payment adoption.

Instant payments through the Aani platform and BNPL solutions are growing rapidly.

 

5. Which application segment leads the United Arab Emirates payment market?

POS/retail leads the United Arab Emirates payment market in transaction volume due to: high tourism spending, mall and hospitality transactions, widespread contactless terminal infrastructure. E-commerce follows closely due to one-click checkout systems, tokenization, and strong digital adoption among residents.

 

6. How is instant payment technology impacting the United Arab Emirates payment market?

The introduction of the Aani instant payment platform is transforming the United Arab Emirates payment market by enabling real-time transfers, faster merchant settlements, and enhanced interoperability across banks and fintech platforms. Instant payments are strengthening P2P transfers, SME payments, and cross-border remittance efficiency.

 

7. What role does the government play in the United Arab Emirates payment market?

The United Arab Emirates payment market is strongly influenced by regulatory and infrastructure initiatives from the Central Bank of UAE, including: Financial Infrastructure Transformation Programme, National Payments Strategy, Open Finance framework, Digital Dirham CBDC pilot initiatives. These programs support security, interoperability, and digital adoption.

 

8. Who are the key players in the United Arab Emirates payment market?

Major companies operating in the United Arab Emirates payment market include: Al Etihad Payments, Network International, First Abu Dhabi Bank, Emirates NBD, Mashreq Bank, Visa, Mastercard, Checkout.com, Stripe, Amazon Payment Services.

 

9. What challenges does the United Arab Emirates payment market face?

Key challenges in the United Arab Emirates payment market include: rising cybersecurity threats and fraud risks, strict regulatory compliance and data residency requirements, intense competition between global and local players, margin pressure in merchant acquiring, integration complexities with legacy banking systems.