United Arab Emirates (UAE) Cards and Payments – Opportunities and Risks to 2025

Pages: 83 Published: May 25, 2022 Report Code: GDFS0599CI

United Arab Emirates (UAE) cards and payments market size was valued at $70.9 billion in 2021. The market is expected to grow at a CAGR of more than 7% during the period 2021-2025.

The UAE cards and payments market research report provides detailed analysis of market trends in the UAE cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cash, credit transfers, cards, and cheques during the review-period. The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period. It also offers information on the country’s competitive landscape, including market shares of issuers and schemes.

UAE cards and payments market outlook

UAE cards and payments market outlook

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What are the market dynamics in the UAE cards and payments market?

The payments landscape in the UAE is dominated by cash, which accounted for a significant share of overall payment transaction volume in 2021e. However, UAE consumers are increasingly adopting electronic methods of payment, with each individual holding an average of nearly two payment cards in 2021e. The shift towards card payments can be attributed to efforts undertaken by the government as well as financial institutions, which have promoted electronic payments through financial inclusion initiatives as well as by developing and expanding the payment acceptance infrastructure in the country. As a result, payment card usage increased gradually over 2017–21e. The frequency of card payments increased during the same period, rising from 2017 to 2021e, with this figure set to increase by 2025f. Besides cards, customers are increasingly embracing alternative payment solutions including Google Pay and Apple Pay, as well as other innovative payment methods such as self-checkout stores. The COVID-19 pandemic has had an adverse impact on consumer spending and thus the payments industry in general. However, it has further propelled the shift in consumer preference towards cashless payment methods.

Which are the key segments in the UAE cards and payments market?

The key segments in the UAE cards and payments market are card-based payment, e-commerce payments, in-store payments, buy now pay later, mobile payments, P2P payments, bill payments, alternative payments.

Card-based payment in the UAE cards and payments market

Despite being a cash-dominated country, the UAE’s payment card market is well penetrated. This is a direct outcome of efforts by the government and banking authorities to boost the banked population and promote card payments. These measures include the introduction of low-cost bank accounts exclusively for low-income groups, the Cashless Dubai Working Group initiative, and developing and expanding the country’s payment acceptance infrastructure.

E-commerce payments in the UAE cards and payments market

Accommodation accounted for the leading share of total ecommerce transaction value in the UAE in 2021e, followed by food and drink and travel. To increase online purchases, banks and credit card issuers collaborate with retailers to offer various benefits to their card holders.

In-store payments in the UAE cards and payments market

For in-store payments, consumers retain their traditional preference for cash, largely due to its perceived convenience and speed. Credit and charge cards are also popular for in-store payments, accounting for a significant share of in-store transaction value in 2021. This is mostly due to the reward programs, cashback, and discounts offered by card issuers and their partner retailers.  To promote mobile wallet acceptance, in August 2021, Dutch payment infrastructure provider TerraPay collaborated with UAE merchant acquirer Network International to develop an interoperable payment platform.

Buy now pay later payments in the UAE cards and payments market

BNPL is gradually gaining traction in the UAE, with several providers now offering this service. UAE-based BNPL provider Postpay enables its users to make payments for online purchases in two or four installments with no interest charged. Similarly, tabby is a BNPL provider through which users can make interest-free installment payments for both in-store and online purchases.

Mobile payments in the UAE cards and payments market

UAE consumers primarily use their mobile wallets for high-ticket purchases such as accommodation and electric goods. The growing popularity of this payment method means both online and offline retailers in the UAE are increasingly accepting mobile wallets. For instance, Samsung Pay is accepted at online stores such as Rehlat, Giordano, 6th Street, 800 Tickets, and Cozmo Travel.

P2P payments in the UAE cards and payments market

The UAE comprises a large immigrant population, which helps explain the strong presence of money exchanges such as Al Ansari Exchange, UAE Exchange, and Western Union in the country. Online bank transfers, PayPal, and mobile banking apps are also popular for both domestic and international money transfers.

Bill payments in the UAE cards and payments market

Cash is also preferred for bill payments by a notable portion of consumers. Utility bill providers such as Dubai Electricity and Water Authority allow their customers to pay their bills in cash via Etisalat Payment kiosks.

Alternative payments in the UAE cards and payments market

PayPal, Google Pay, Apple Pay, Samsung Pay are some of the alternative payments in the UAE cards and payments market.

Which are the key payment instruments in the UAE cards and payments market?

The key payment instruments in the cards and payments market in UAE are cash, cards, credit transfers, direct debits and cheques. Cash is the largest payment instrument in the cards and payments market in UAE in terms of volume.

UAE cards and payments market, by payment instrument

UAE cards and payments market, by payment instrument

 

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Which are the key players in the cards and payments market in UAE?

The key players in the cards and payments market in UAE are Emirates NBD, Dubai Islamic Bank, FAB, ADIB, Emirates Islamic, ADCB, RAKBANK, HSBC, Mashreq Bank, Standard Chartered, Commercial Bank of Dubai, Citibank, and Apple Pay.

Market report scope

Market size $70.9 billion
CAGR % (2021-2025) >7%
Key segments Card-Based Payment, E-Commerce Payments, In-Store Payments, Buy Now Pay Later, Mobile Payments, P2P Payments, Bill Payments, Alternative Payments
Key payment instruments Cash, Cards, Credit Transfers, Direct Debits, and Cheques
Key players Emirates NBD, Dubai Islamic Bank, FAB, ADIB, Emirates Islamic, ADCB, RAKBANK, HSBC, Mashreq Bank, Standard Chartered, Commercial Bank of Dubai, Citibank, and Apple Pay

Scope

Current and forecast values for each market in the Emirati cards and payments industry, including debit, credit, and charge cards

  • Detailed insights into payment instruments including cash, cards, credit transfers, cheques, and direct debits It also, includes an overview of the country’s key alternative payment instruments.
  • Ecommerce market analysis.
  • Analysis of various market drivers and regulations governing the Emirati cards and payments industry.
  • Detailed analysis of strategies adopted by banks and other institutions to market debit, credit, and charge cards.
  • Comprehensive analysis of consumer attitudes and buying preferences for cards.
  • The competitive landscape of the Emirati cards and payments industry.

Reasons to Buy

Make strategic business decisions, using top-level historic and forecast market data, related to the Emirati cards and payments industry and each market within it.

  • Understand the key market trends and growth opportunities in the Emirati cards and payments industry.
  • Assess the competitive dynamics in the Emirati cards and payments industry.
  • Gain insights into marketing strategies used for various card types in the UAE.
  • Gain insights into key regulations governing the Emirati cards and payments industry.

Key Players

Emirates NBD
Dubai Islamic Bank
FAB
ADIB
Emirates Islamic
ADCB
RAKBANK
HSBC
Mashreq Bank
Standard Chartered
Commercial Bank of Dubai
Citibank
Apple Pay
Google Pay
PayPal
Samsung Pay
Payit
eWallet
Noon Pay
empay
Klip
Beam Wallet
PayBy
Noqodi
American Express
Visa
Mastercard
Diners Club.

Table of Contents

Table of Contents

Executive Summary

Market Overview

Payment Instruments

Card-Based Payments

Ecommerce Payments

In-Store Payments

Buy Now Pay Later

Mobile Payments

P2P Payments

Bill Payments

Alternative Payments

Payment Innovations

Job Analysis

Payment Infrastructure and Regulation

Appendix

Frequently Asked Questions

The UAE cards and payments market size was valued at $70.9 billion in the year 2021.

 

 

 

 

The UAE cards and payments market is projected to grow at a CAGR of more than 7% during the period 2021-2025.

Card-based payments, e-commerce payments, in-store payments, buy now pay later, mobile payments, P2P payments, bill payments, alternative payments are the key segments in the UAE cards and payments market.

Cash, cards, credit transfers, direct debits and cheques are the key payment instruments in the UAE cards and payments market.

Emirates NBD, Dubai Islamic Bank, FAB, ADIB, Emirates Islamic, ADCB, RAKBANK, HSBC, Mashreq Bank, Standard Chartered, Commercial Bank of Dubai, Citibank, and Apple Pay are the key players in the UAE cards and payments market.

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