UAE card transactions set to surge to Dh565.5 billion

The UAE’s card transactions market is experiencing remarkable growth, with payment values projected to reach Dh565.5 billion in 2025.

This 10.6 per cent increase from 2024’s Dh511.4 billion underscores a strong shift toward electronic payments, driven by rising consumer preference for digital transactions, government-led financial inclusion initiatives, and advanced payment infrastructure. As the UAE accelerates its journey toward a cashless economy, these trends highlight its broader digital transformation ambitions , according to GlobalData, a leading data and analytics firm.

Recommended For You

Trump condemned for saying Rob Reiner, wife Michele brought on own murder

Economic milestone:Japan-UAE relations set to hit new peak

Novartis leads effort to bring breast cancer awareness and early detection to UAE workplaces

Trump signs more orders in one year than his entire first term, a record since World War II

'Jassi Weds Jassi’ premieres in Dubai to a packed house

 

Card payment values grew 13.3 per cent year-on-year in 2024, reflecting the UAE’s evolving payment landscape, GlobalData’s report, “UAE Cards and Payments: Opportunities and Risks to 2028,” said.  Despite global economic uncertainties, such as new US tariffs, which may temper overall economic growth, the card payment market is expected to maintain its upward trajectory, with a projected compound annual growth rate (CAGR) of 9.6 per cent from 2025 to 2029, reaching Dh814.7 billion ($221.8 billion) by 2029.

Ravi Sharma, lead banking and payments analyst at GlobalData, said while cash remains dominant, card payments are gaining ground, fueled by government and financial institutions’ efforts to promote electronic transactions. “Financial inclusion initiatives and expanded payment acceptance infrastructure are encouraging consumers to embrace digital payments for everyday transactions.”

Data from the Central Bank of the UAE (CBUAE) supports this, showing a 15 per cent increase in card-based transactions in 2024 compared to 2023.A cornerstone of this growth is the UAE’s Wage Protection System, which mandates electronic wage payments through CBUAE-authorised banks and financial institutions. This initiative has significantly boosted financial inclusion, increasing the banked population and demand for payment cards.  

According to a 2024 World Bank report, the UAE’s financial inclusion rate reached 94 per cent, among the highest globally, driven by such policies. Government strategies are further accelerating the cashless transition. In October 2024, Dubai launched its Cashless Strategy, aiming for 90 per cent cashless transactions by 2026. The initiative focuses on expanding digital payment solutions across public and private sectors, leveraging innovations like AI and contactless technologies.

Fintech experts hail Dubai’s cashless vision as a game-changer, positioning the emirate as a global leader in digital payments. The UAE’s Financial Infrastructure Transformation (FIT) Programme is also enhancing payment ecosystems. The expansion of point-of-sale (POS) terminals, particularly mobile POS systems, has been pivotal. Mobile POS terminals, which are cost-effective for small and medium enterprises (SMEs) — comprising 95 per cent of UAE businesses, per the Ministry of Economy — are driving payment acceptance growth.  

A 2024 report by Visa noted a 20 per cent rise in POS terminal installations across the UAE, with mobile POS adoption growing fastest in retail and hospitality. Consumer behaviour is aligning with these developments. A 2025 Mastercard survey found that 68 per cent of UAE consumers prefer card or mobile payments for convenience and security, up from 55 per cent in 2023. Contactless payments, in particular, have surged, with CBUAE reporting that 82 per cent of in-store card transactions in 2024 were contactless. This shift is evident in high-traffic sectors like retail, where SMEs increasingly adopt digital solutions to cater to tech-savvy customers.

Despite this progress, challenges remain. Global economic headwinds, including US tariffs, could impact the UAE’s export-driven economy, potentially slowing card payment growth. Additionally, while cash usage is declining, it remains prevalent in smaller transactions, particularly in traditional markets. However, the transition to a fully cashless society requires sustained education and infrastructure investment, especially in rural areas, experts noted.

Nevertheless, the UAE’s card payment market is poised for sustained growth, underpinned by supportive policies and technological advancements. The CBUAE’s push for digital wallets and blockchain-based payment systems is expected to further enhance transaction efficiency.  

As the UAE advances toward its cashless ambitions, its card transaction market reflects a dynamic interplay of policy, technology, and consumer trends. With Dh565.5 billion in transactions projected for 2025, the nation is cementing its status as a leader in the global shift to digital payments.

Issac John

Staff Writer

issacjohn@khaleejtimes.com

Issac John is Managing Editor at Khaleej Times and has over 45 years of experience in top-tier newspapers across UAE. A seasoned business writer and economic analyst, he brings unmatched insight into the geopolitics and geoeconomics shaping the Gulf and India.