The UAE’s payments industry is set for significant growth, with total revenues projected to reach $27.3 billion by 2028, according to the Global Payments Report 2024 by Boston Consulting Group (BCG). Despite a global slowdown in payment sector growth, the UAE remains a regional leader, driven by rapid digital transformation and strategic financial sector investments.
Global Payment Trends: A Slower Growth Trajectory
The BCG report, titled Fortune Favors the Bold, highlights key challenges for the payments industry, including:
- Shifting customer expectations
- Heightened regulatory scrutiny
- Technological disruptions
Globally, payments revenue growth is expected to slow, with the compound annual growth rate (CAGR) dropping to 5% through 2028—down from 9% over the past five years. By 2028, the global payments revenue pool is expected to reach $2.3 trillion, up from $1.8 trillion in 2023.
Regional breakdown:
- North America & Europe: Slowest growth, with annual revenue increases of just 3%.
- Middle East, Asia-Pacific & Latin America: Higher growth driven by emerging digital payment markets.
The Middle East is forecasted to achieve a 7% CAGR, underscoring its increasing focus on digital payments and fintech adoption.
UAE’s Standout Performance
The UAE’s payments sector has outpaced global trends, showcasing consistent growth:
- From $9.8 billion in 2018 to $18.8 billion in 2023, with a 13.8% CAGR.
- By 2028, revenues are projected to surge to $27.3 billion, marking a 45% increase over five years.
Transaction volumes are also expected to rise sharply:
- From 1.7 billion in 2023 to over 3.1 billion by 2028—representing a 78% increase.
Digital Transformation Driving Growth
The UAE’s shift from cash-based transactions to digital payments remains a key driver, fueled by:
- Government initiatives promoting financial inclusion and innovation.
- Accelerated adoption of fintech solutions and digital payment platforms.
As the UAE positions itself at the forefront of financial innovation in the GCC, its payments industry serves as a model for other emerging markets.
While global payment sector growth faces headwinds, the UAE stands out as a bright spot, thanks to its strategic focus on digital transformation and financial innovation. With revenues projected to reach $27.3 billion by 2028 and transaction volumes skyrocketing, the UAE’s payments industry remains a key pillar of the nation’s economic growth.
