Digital payments in UAE - statistics & facts

Cash use is witnessing a decline around the world, with digital wallets, credit and debit cards, and buy-now-pay-later solutions substituting physical money. Global buy now, pay later (BNPL) transactions are forecasted to increase by around 450 billion U.S. dollars between 2021 and 2026. The United Arab Emirates is no exception to this trend, with credit and debit cards the most common online payment among consumers. The country's most popular card scheme for e-commerce payments was Visa, followed by Mastercard.

Digital payments market

The growth in the digital payment sector in the country is driven by a very high internet penetration rate, a fintech boom, and a stable economy. The UAE's transition to a cashless society was accelerated in 2020 and is expected to become fully cashless by 2030. This is also mirrored with POS payments, where cash use has declined at a fast pace, as opposed to credit cards, which have almost doubled in market share since 2019. Besides credit cards, mobile wallets have gained huge massive popularity in recent years. Take the example of klip, an e-wallet that is expected to dominate the mobile wallets market in the UAE by 2025. Klip is part of a nationwide initiative to replace physical cash with digital payments, rolled out by several financial institutions, including the Central Bank and the UAE Banks Federation.

BNPL in the UAE

The buy now, pay later model is witnessing fast growth, although it is still in its early stages. In 2022, the market share of BNPL in domestic e-commerce payments was less than the global average. Emirati BNPL providers such as PostPay, Cashew, Spotii, and Tabby compete with regional providers such as Saudi Arabia's Tamara. More than seven percent of websites offered Klarna as a BNPL solution. The BNPL segment is projected to continue growing in the e-commerce sector.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, Jan 10, 2024

Key insights

Cash payments share at points of sale (POS) in UAE
75%
Market share of credit cards at point of sale (POS) in UAE
40%
Most common peer-to-peer payments in UAE
Bank transfer
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