Real-time payments are becoming a cornerstone of modern economies in the Middle East, spurred by government initiatives and the subsequent advantages for businesses and consumers. This shift is ushering in a new era of financial innovation and opportunity.

According to the 2024 Prime Time for Real-Time report by ACI Worldwide and GlobalData, the Middle East continues to reign as the world’s fastest-growing real-time payments market. This marks the second consecutive year the region has secured the top spot.

The region experienced a staggering 33.6% year-over-year growth in 2023, with 855 million real-time payment transactions. This impressive number is projected to nearly quadruple by 2028, reaching 3 billion transactions, reflecting a strong CAGR of 28.8%.

A key milestone was reached last year with the launch of national real-time payment schemes in Oman, Kuwait, and Qatar, solidifying the region’s leadership. These new programs join established systems in Saudi Arabia, Bahrain, and the UAE.

With all six countries in the Gulf Cooperation Council now boasting operational real-time payment programs, the transaction value in the Middle East is poised for significant growth. An increase from $230 billion in 2023 to a projected $903 billion by 2028 underscores the transformative potential of this technology.

Bahrain stands out as a leader within the region as real-time payments constitute nearly half of all transactions and dominate the electronic payment landscape.

“Real-time payments eliminate payment friction, inject greater liquidity into the system, and promote economic growth and financial inclusion.” said Santhosh Rao, Senior Vice President of Sales at ACI Worldwide MEASA. 

In 2023, electronic transactions already dominated, exceeding 50% of all transactions and reaching 95% of the total transaction value.

Real-time payments are poised for even greater prominence. The share of electronic transactions is projected to rise to a significant 22% by 2028, surpassing adoption rates in Europe and North America. 

The ACI report paints a clear picture: by 2028, cash is expected to represent a mere 3% of all transaction value in the Middle East.

“Active collaboration is the cornerstone of a thriving real-time payment ecosystem,” Rao added. Banks need to navigate a balance between competition and cooperation with new players to create a robust environment.