Have you ever observed the trend in UAE malls when it comes to parking fee payments?
It’s fascinating!
Most people seamlessly swipe their cards or tap their digital wallet instead of fumbling for cash.
This isn’t just limited to parking; it extends to groceries, transportation fares, and even mobile recharges!
The convenience of cashless transactions has transformed everyday life, making it quicker and more efficient. It’s like living in the future, where your wallet is your smartphone, and every transaction is just a tap away!
This progress is a direct result of close collaboration between the government and industry, which has established the necessary digital payment infrastructure, services, and consumer trust.
In this guide, we discuss the UAE’s digital payment growth and future payment trends.
How Digital Payments in the UAE Have Evolved – UAE Digital Payment Growth 2025
More than 70% of the UAE’s residents use cashless payment methods. The country has advanced so much in payments that some businesses now accept cryptocurrency as payment. Thus, the nation’s payments sector is on a rapid trajectory, with total revenues projected to reach $27.3 billion by 2028.
This monumental growth is underpinned by progressive regulation, widespread digital adoption, and a focused national shift toward a cashless economy. So, what have been the key drivers for such impressive growth in digital payments in the UAE in 2025? Let’s have a look!
Introduction of Digital Dirham
The Digital Dirham is the UAE’s forthcoming Central Bank Digital Currency UAE (CBDC UAE), a sovereign digital form of the national fiat currency, the UAE Dirham (AED), issued and backed by the Central Bank of the UAE (CBUAE).
The government is issuing it primarily to modernize payments, enhance financial inclusion, and solidify national payment sovereignty. The core aim is to create a programmable, secure, and instant digital layer for financial transactions. By integrating the Digital Dirham, the government seeks to revolutionize payments by enabling more efficient, transparent, and immediate settlements for public services, taxes, and inter-government transfers, ultimately lowering costs and risk in the financial infrastructure.
Cryptocurrency Goes Mainstream
In the UAE, a growing number of businesses and services accept cryptocurrency for payments, including real estate developers, car rental companies, cafes, and airlines. The Dubai government is also planning to accept crypto for service fees through a partnership with crypto adoption UAE Crypto.com. Some businesses are using payment gateways like NOWPayments or TransFi to accept crypto.
Real estate
- Major developers like Damac, Nakheel, Ellington, Omniyat, and Arada accept cryptocurrency for select projects.
- Buying property with crypto is legal if processed through licensed intermediaries under the Virtual Assets Regulatory Authority (VARA).
Transportation and travel
- Emirates Airlines is planning to accept crypto payments from 2026.
- Several car rental companies, such as Kings Rental Cars, accept crypto.
- The Dubai government will accept crypto for service fees through a partnership with Crypto.com.
Food and hospitality
- Bake N More is a cafe in Dubai that accepts Bitcoin for payments.
Other services
- The Valens Clinic accepts crypto payments for both in-person and online consultations.
- Some businesses use payment gateways like NOWPayments and TransFi to accept crypto, which also support a wide range of cryptocurrencies.
Government-Led Infrastructure
The UAE’s Digital payment revolution is also steered by strong public-sector leadership and forward-thinking regulations that champion innovation. The foundation of this transformation is the National Payment Systems Strategy (NPSS), which is establishing a framework for secure, real-time, and interoperable infrastructure.
Key initiatives include:
| Aani Instant Payment Platform | Jaywan Domestic Card Scheme | Open Finance Framework |
| Launched in 2023, Aani enables transparent, 24/7 transactions and is a major catalyst for real-time payment (RTP) adoption, now used by over 70 financial institutions. | This new national card scheme is a strategic move to enhance national payment sovereignty and promote greater financial inclusion across the Emirates. | Released by the Central Bank of the UAE (CBUAE) in 2024, this framework establishes a structured process for data sharing and transaction initiation with user consent, fostering competition and personalized financial experiences. |
The Rise of Tokenized and Cross-Border Digital Currencies
Beyond traditional RTP, the UAE is actively exploring the frontier of digital assets for enhanced settlement and cross-border commerce:
- Regulated Stablecoins: In 2024, the Ministry of Economy partnered with Fluent to develop the nation’s first nationally regulated stablecoin under the NextGen FDI programme, emphasizing secure, tokenized settlement options.
- CBDC Corridors: The UAE is actively testing CBDC-based cross-border corridors with international partners, such as India, to enable instant, round-the-clock settlements for trade and finance.
Boosting Global Remittance Efficiency
As one of the world’s largest outbound remittance markets, the UAE serves as a vital financial bridge. The shift here is marked by digitalization:
- Market Scale: In 2023, nearly $40 billion was sent from the UAE to countries like India, Pakistan, and the Philippines, supporting vast social and economic needs across Asia.
- Digital Adoption: A significant 57% of remittance users in the UAE now send money abroad using digital platforms (MTO apps, bank apps), signaling strong consumer confidence in digital channels over traditional in-person counters.
- Enhanced Connectivity: The country is reinforcing its central role by exploring links with regional RTP networks like Buna, solidifying its position as a faster, more efficient global connector.
Widespread Mobile Wallet Integration
The UAE is making a firm march toward its goal of becoming a fully cashless economy by 2030, driven by the ubiquity of mobile payment technologies:
- Usage Penetration: As of 2024, 46% of the population uses mobile wallets (including Apple Pay, Google Pay, Samsung Pay, and local options like Payit Wallet) for daily transactions. The market is projected to reach $7.18 billion by 2028.
- Contactless Dominance: 84% of all transactions in the UAE are now contactless, demonstrating high consumer acceptance of tap-and-pay technologies.
- Interoperability: The UAE supports the acceptance of foreign wallets like India’s UPI, WeChat Pay, and Alipay at thousands of local merchants, allowing tourists to pay with familiar apps while ensuring merchants receive local currency settlement.
Fintech-Ready Regulatory Zones
Specialized regulatory zones play a critical role in fostering innovation while maintaining strong consumer protection:
| Innovation Sandboxes | Trusted Environment |
| Regulatory zones like the ADGM and DIFC support fintech growth through common law frameworks and innovation sandboxes (like RegLab and the Innovation Testing Licence). These programs allow startups to safely trial solutions, from remittances to QR wallets, in real-world environments. | With advanced virtual asset regulations and infrastructure built for scale, the UAE is shaping one of the world’s most fintech-ready environments: trusted, inclusive, and designed for global interoperability. |
Rapidly Expanding E-commerce
The growing e-commerce industry both benefits from and drives digital payment adoption.:
- Market Trajectory: The e-commerce market reached $10.8 billion in 2024 and is projected to hit $17 billion in 2025.
- Payment Method: Over 71% of e-commerce transactions are completed using cards or mobile wallets, clearly reflecting the national shift away from cash-on-delivery.
- Ecosystem Support: The sector is backed by advanced logistics and purpose-built zones like Dubai CommerCity, which offer tailored incentives and infrastructure for digital commerce companies.
The UAE’s Payments Future
The UAE is actively redefining the mechanics of money movement across borders, sectors, and platforms. Its leadership in RTP, remittances, and digital currencies has positioned it as the Middle East’s undisputed global payments gateway. The core of this transformation rests on an ecosystem built on interoperability, speed, and trust.
The advancements ensure seamless financial flows with unmatched reach, reinforcing the UAE’s role in connecting global businesses, fintechs, and consumers to dynamic payment rails. This foundation ensures money moves faster, safer, and more efficiently, whether for a global payment provider or a regional SME.
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