Market Trends of United Arab Emirates Real Time Payments Industry
This section covers the major market trends shaping the UAE Real Time Payments Market according to our research experts:
Significant Growth in Real Time Payment is Expected due to Digitalization
- Digital transformation has taken over since the Covid - 19 pandemic. Various organizations shifted to online business by adopting instant retail and real-time payment facilities. Moreover, factors like increased demand for the internet and smartphones have boosted the real-time payment market.
- According to the World Bank's GovTech Maturity Index 2021, UAE has been ranked among the world's best countries in digital government transformation. The index measures the maturity levels of technology modern on reliance and transformation in government work in 198 countries. As digitalization has taken center stage in the country, real time payments is expected to witness significant adoption with declining dependency on cash.
- United Arab Emirates' government has been introducing various strategies for further growth and expansion of digitalization in the country. For instance, Abu Dhabi Economic Vision 2030 aims to adopt and invest in ICT infrastructure. This will further help the country increase internet penetration and boost the digital infrastructure.
- In April 2022, the government launched the Digital Economy Strategy with the aim to double the contribution of the digital economy to the UAE's gross domestic product (GDP) from 9.7% as of April 2022 to 19.4% within ten years. The strategy incorporates over 30 initiatives and programs focusing on six sectors and five new areas of development.
Understand The Key Trends Shaping This Market
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P2P is Expected to Hold a Major Share
- Market players are launching various payment services to expand real-time payment use across the country. For instance, In April 2022, Careem Pay introduced a new digital wallet that stores real money for customers across the UAE, along with a new peer-to-peer (P2P) transfer product that allows users to send, request, and receive money easily through personal QR code, phone number or a personal payment link. The integration of digital wallets with real time payments is expected to drive the growth of the P2P segment.
- Cashless payments are growing with the shift in buying behavior of customers and the adoption of digital payments. Companies are promoting real-time payment in the country. For instance, In February 2022, Ziina, a Dubai-based fintech startup, announced the launch of its new P2P digital wallet app that allows instant cash transfer for UAE customers.
- Moreover, organizations are collaborating with banks in order to achieve the rising demand for real-time payments in the country. For instance, In January 2022, ACI worldwide announced its partnership with banks to Integrate UAE's Instant Payments by connecting banks to United Arab Emirates (UAE) Instant Payments Platform (IPP). Such initiatives are driving the easy implementation of the P2P real-time payment system.
