The UAE has not only innovated in the fintech sector to become a global leader in the process, but has also changed the way individuals and corporates in the country transfer money internationally. As the concept of digital payment solutions emerges as a new norm, efforts by the UAE are paving the way for a cashless future, benefitting the millions of users across the planet.
The fintech industry in the UAE has enjoyed easy growth, with the fintech companies deemed active increasing more than twice in three years. This financial reform based on digital payments is fueled as a result of an alliance between local governments and cross border payment gateways which have enabled fast, safe, and low cost cross border transactions.
As per Network International, the digital payment market in the country is currently worth about 140-150 billion dollars a year. This number indicates the extent to which the digital payments have increased in the UAE in a successful manner towards achieving the vision of the government of going cash-free by 2033.
UAE Digital Payment Solutions Leading the Market
Key Players Driving Innovation
Several major companies are leading the UAE’s fintech transformation:
The company PayTabs has been playing a critical role in the promotion of fintech development by offering innovative payment processing services. The company enables businesses to accept digital payments through varied applications easily.
According to Network International, their digital payment services have given functionality to UPI acceptance in many point-of-sale terminals, such that the tourists now settle local transactions using their known systems.
MoneyGram Intercontinental joined forces with Comerica Pay to improve digital payment services. The Comera Pay component in this app has more than eight million active clients, which proves how tremendous the potential of digital payments is in the area.
LuLu Financial Holdings has created the Remittance-as-a-Service (RaaS), which provides cross-border payments on plug-and-play infrastructure. The service will help fintechs in the region integrate into seamless payment systems in a short period.
Government Support and Partnerships
The UAE government has created a supportive environment for fintech innovation through initiatives like:
These initiatives have brought regulators, banks, fintechs, and international money institutions to work together, developing innovative payment systems combining speed and safety.
Read Also : UAE Expands Digital Reach with Indian UPI Integration
Cross-Border Payment Innovation Transforming Remittances
Making Money Transfers Easier
The UAE has evolved into a fast cross-border payments center of the world. It belongs to the top 3 remittance-sending nations in the world continuously, and millions of expatriates have found reliable sources to connect with their families in every part of the world.
The foreign trade in the UAE was AED 5.23 trillion in 2024, with the latter emphasizing the rising importance of the country on the international scene. Such development is facilitated by the emergence of innovative fintech, providing access to international money transfers:
- Faster: Real-time payment systems enable instant transfers
- Cheaper: Reduced fees keep remittance costs below 5% as recommended by the UN Sustainable Development Goals
- Safer: Advanced security features protect against fraud
- More accessible: Digital platforms reach underserved communities
Technology Driving Change
Incorporation of Unified Payments Interface (UPI) as well as RuPay card serviceshase boosted the financial corridor that takes care of about a third of the outbound remittances in the domestic country. Such electronic payment methods are developed based on the 2022 bilateral payment agreement between UAE and several countries where local currencies can be settled; thereby lowering transactional costs and facilitating the bilateral trade.
A good example is the joint effort made by PayPal with TerraPay to bridge banks, mobile wallets, and payment account in the Middle East and Africa. Such a collaboration gets rid of delays and mediators that are present in traditional cross-border money transfers.
Supporting Financial Inclusion
Financial inclusion in the UAE is being facilitated by cross-border payments, especially to the section of the migrant population that is enormous. Recent surveys also show that the number of UAE SMEs using cross-border payments by using apps and digital tools has risen to 82 percent, a 27 percent jump compared to 2021.
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