UAE Payments Revenue Pool Projected To Reach USD 27.3 Billion By 2028 Amid Digital Transformation

The UAE's payments industry is on track for substantial growth, with revenues expected to hit $27.3 billion by 2028. This forecast comes from the Global Payments Report 2024 by Boston Consulting Group (BCG). Despite a global slowdown, the UAE leads the GCC due to its swift digital transformation and strategic financial investments.

Globally, payments revenue growth is slowing, with a projected compound annual growth rate (CAGR) of 5% through 2028. This is a significant drop from the previous five years' 9% CAGR, which saw global revenues reach $1.8 trillion in 2023. North America and Europe are expected to see the most pronounced slowdowns, with annual revenue increases of only 3%.

The UAE's payments sector has experienced strong growth recently. From 2018 to 2023, revenues increased from $9.8 billion to $18.8 billion, reflecting a CAGR of 13.8%. By 2028, revenues are projected to grow by 45%, reaching $27.3 billion. This growth is largely driven by a shift from cash-based transactions to digital payments.

Transaction volumes in the UAE are also set to rise significantly. They are expected to increase from 1.7 billion in 2023 to over 3.1 billion by 2028, marking a 78% rise. Government initiatives and greater fintech adoption are key factors in this transition towards digital payments.

The Global Payments Report highlights that while global growth is slowing, regions like the Middle East, Latin America, and Asia-Pacific are poised for higher growth rates. The Middle East is projected to grow at a CAGR of 7%, driven by accelerating digital payments in emerging markets.

The report underscores the importance of adapting to changing customer expectations and technological disruptions in this evolving landscape. It stresses that decisive action is needed to navigate these challenges effectively.

In summary, while global payment revenue growth is decelerating, the UAE remains a standout performer within its region. Its continued focus on innovation and digital transformation positions it well for future success in the payments industry.

With inputs from WAM