UAE payment business revenue expected to reach $ 14 billion by 2030

From 2015 to 2020, domestic payments revenue grew 17%, or $ 8.4 billion.
Image Credit: Gulf News Archives

Dubai: As shopping habits shifted almost overnight from offline to online and cash to non-cash in the wake of COVID-19, the payments industry has subsequently taken a huge hit less serious than initially expected, according to a new report from the Boston Consulting Group (BCG).

According to the report, the UAE shares many commonalities with other regional and international geographies, including manageable revenue losses given the recent turmoil and optimistic projections for the future.

From 2015 to 2020, domestic payments revenues grew by 17%, $ 8.4 billion, and could reach $ 14 billion by 2030. The United Arab Emirates has the potential for sustained growth in the United Arab Emirates. over the next five years and beyond, with a compound annual growth rate of 5.3% from 2020 to 2030.

“Our comprehensive analysis leads to a positive conclusion that the UAE payments industry has played its role in the country’s economic recovery,” said Mohammad Khan, BCG partner.

“New consumer preferences and the emergence of digital channels have collectively helped accelerate e-commerce activation, expanding fulfillment options and streamlining point-of-sale and online payments in the process. Such trends have laid the groundwork for a new chapter in the dynamism and success of the payments industry for all parties concerned in the years to come, which is underscored by notable growth projections. “

After taking into account payment instruments, including payment cards, checks, high value credits, wire transfers, current accounts, and credit, debit and prepaid cards, the report revealed income from payments and total transaction forecast for the UAE payments industry.

The forecast of $ 14 billion in revenue payments by 2030 represents a 67% increase over 2020, while the number of transactions is expected to grow from around 644 million to over 1.2 billion over the course of the year. same period, an increase of 94%. .

“Innovation in the payments industry in the UAE will continue to gain ground over the decade, which in turn will result in the continued recording of a record number of digital transactions,” said Markus Massi. , Managing Director and Senior Partner, BCG.

“This scenario will translate into the efforts of incumbent operators in the sector to improve service capabilities, with the introduction of new market players leading to even higher levels of competition and innovation. The services will integrate with more digital ecosystems and thus provide consumers with more transparent options, with the retail segment ready to capitalize accordingly. “

Over the next few years, retail payments revenues in the UAE are expected to experience significant increases. In 2020, retail payments revenue was $ 4.7 billion. However, this figure is expected to reach around $ 7.9 billion by 2030, an increase of 68 percent, and the number of related transactions will also increase by nearly 93 percent, from 567 million in 2020 to over ‘one billion by 2030.

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