UAE Payments Revenues Expected to Reach $18.7 billion By 2031
The CAGR of the UAE’s overall payments revenue is forecasted to be at 7.7% from 2021 – 2031, while the region is expected to grow by 9.3% within the same period.
Dubai, October 18, 2022— Payment revenues in the United Arab Emirates (UAE) are expected to reach $18.7 billion by 2031 according to the new report by Boston Consulting Group (BCG), titled “Global Payments 2022: The New Growth Game.”
BCG’s 20th annual analysis of the payments industry in the UAE shows an expected Compound Annual Growth Rate (CAGR) of 7.7% between 2021 to 2031 on payment revenues. Among the areas of particular strength will be revenues from credit cards, debit cards, and current accounts.
Mohammad Khan, Managing Director & Partner, BCG, said: “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. A combination of drivers—such as the country’s young, tech-savvy, and fast-growing population, the nation’s bid to become a crypto and fintech hub, and the planned launch of a domestic payments scheme are resulting in greater competition and paving the way for future growth. Cross-industry participation in digital payments will provide an added impetus to the region’s already burgeoning sector.”
Four Trends Driving the Global Payments Industry
The report outlines four trends that will shape the outlook for the global payments industry, which has some impact on the UAE, over the next five years:
- The era of non-profitable growth is over. Payments players will have to demonstrate solid profitability to attract both customers and investors.
- Demand for electronic payments is getting stronger. The sustained cash-to-noncash conversion, the ongoing growth of e-commerce, and the increasing integration of payments into retail and corporate customer journeys will drive payments revenues globally
- Central bank digital currencies (CBDCs) are gaining momentum. Central banks are tailoring CBDCs to complement cash with digital central bank money to implement monetary policy faster.
- Payment businesses are under increasing scrutiny from regulators. Market participants must address risk dimensions, be it financial, compliance, cyber, or crypto to install the required safeguards for their businesses on their path to growth.
“Payments revenues in the GCC will see acceleration on the back of real-time payments infrastructure, a growing number of specialized payments players bringing new solutions to the market, and enabling policies from governments,” concluded Khan.
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