Driven by the tech-savvy population in the Middle East’s second-largest economy, the payments industry revenue in the UAE is expected to grow to $18.7 billion by 2031. 

According to a new BCG report, revenues are expected to grow at a compound annual rate of 7.7% between 2021 and 2031. And these revenues from credit cards, debit cards, and current accounts, in particular, will elevate the industry’s growth over the 10 years.

“The UAE continues to see robust growth in payments and fintech activity in general. This year alone, we have seen the launch of multiple digital banks and specialized payments players. Cross-industry participation in digital payments will provide an added impetus to the region’s already burgeoning sector,” says Mohammad Khan, managing director & partner, BCG. 

According to BCG, four trends are influencing the future of the payments industry globally and will likewise fuel growth in the UAE over the following five years. 

The first one being, payment players will need to show strong profitability to draw customers and investors as the era of non-profitable expansion ends. According to the consultancy, global payments revenues will be driven by the continuous cash-to-non-cash conversion, the ongoing expansion of e-commerce, and the growing integration of payments into retail and corporate customer journeys. Lastly, central banks are tailoring CBDCs to complement cash with digital central bank money to implement monetary policy faster.

“Payments revenues in the GCC will see acceleration on the back of real-time payments infrastructure, a growing number of specialized payments players bringing new solutions to the market, and enabling government policies,” adds Khan.