Card transactions in the UAE are projected to reach AED565.5 billion ($154 billion) this year, according to research company GlobalData.
The shift toward electronic payments is being driven by increasing consumer preference for digital transactions and government support for financial inclusion.
Last year, UAE card payment values rose 13 percent year-on-year to AED511 billion. GlobalData is predicting a further 11 percent growth this year.
“While cash remains the most preferred mode of payment, the dynamic is gradually changing with the rise in card payments,” said Ravi Sharma, GlobalData’s lead banking and payments analyst.
Government initiatives promoting electronic payments include a wage protection system – which ensures employers pay salaries electronically via authorised financial institutions – and a financial infrastructure transformation programme, which promotes mobile payments.
The ‘Dubai Cashless Strategy’ was launched in October 2024 and aims for 90 percent of all transactions to be digital by 2026.
Mobile point-of-sale terminals are gaining popularity for payments, particularly among small and medium-sized enterprises. SMEs comprise 94 percent of UAE companies and contribute over 60 percent to the country’s GDP.
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