Powering payments in the Middle East: The UAE’s influence

The United Arab Emirates (UAE) is rapidly becoming a global payments hub, bridging the Middle East with Asia, Africa and the Western world. Its strategic location, diverse population and digital ambition make it a key player in international financial flows.

The country’s payments sector is on a fast track, with total revenues projected to hit $27.3 billion by 2028. This growth is driven by strong digital adoption, progressive regulation, and a national shift toward a cashless economy. From remittances and mobile wallets to instant payments and digital currencies, the UAE is building an interconnected ecosystem for seamless transactions. 

This progress reflects close collaboration between government and industry, building the infrastructure, regulation and services needed for real-time financial connectivity. As the UAE advances as a payments leader, several trends stand out. 

This article explores: 

• Government initiatives in the UAE
• Remittances in the UAE
• Mobile wallets in the UAE
• Real-time payments in the UAE
• Ecommerce in the UAE

Government initiatives in the UAE

The UAE’s rise as a payments hub is driven by strong public-sector leadership and regulation that supports innovation. At the centre of this push is the National Payment Systems Strategy (NPSS), which lays the foundation for secure, real-time and interoperable infrastructure. The key initiatives include:

• Aani, an instant payment platform enabling 24/7, transparent transactions (launched in 2023)
• Jaywan, the UAE’s new domestic card scheme aimed at enhancing national payment sovereignty and financial inclusion
• A comprehensive Open Finance Framework released through the Central Bank of the UAE (CBUAE) in 2024, establishing a structure for data sharing and transaction initiation with user consent, promoting competition and personalised financial experiences
• ISO 20022-compliant systems
• Overlay features such as request-to-pay and digital cheques
  

In parallel, the UAE is exploring the frontier of digital currencies. The upcoming Digital Dirham, a Central Bank digital Currency (CBDC) set to launch in Q4 2025, is designed to modernise payments and enhance financial inclusion. It will add a programmable, sovereign digital layer to the country’s payment rails.

The UAE is also taking steps toward regulated stablecoin adoption. In 2024, the Ministry of Economy announced partnerships with blockchain firm Fluent to develop the nation’s first nationally regulated stablecoin under the NextGen FDI programme, highlighting a growing focus on tokenised, secure settlement options that can power cross-border commerce and institutional-grade financial applications.

Regulatory zones such as the Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC) support fintech growth through common law frameworks and innovation sandboxes. Programmes like RegLab and the Innovation Testing Licence allow startups to trial solutions, from remittances to QR wallets, in real-world environments with strong consumer safeguards.

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.

Remittances in the UAE

With millions of expatriates, the UAE is one of the world’s largest outbound remittance markets and a vital financial bridge between developed economies and emerging markets. In 2023, GCC countries sent over $131.5 billion in remittances, led by the UAE and Saudi Arabia. The UAE ranked second globally, behind the United States.

In 2023, nearly $40 billion was sent from the UAE to India, Pakistan, and the Philippines alone, funding education, healthcare, and investments across Asia. This is supported by a mature remittance infrastructure. For decades, licensed exchange houses such as Al Fardan have worked alongside banks and global Money Transfer Operators (MTOs) to provide wide access and competitive rates, even for lower-income earners. Today, UAE residents can choose from in-person counters to digital apps. Already, 57% of remittance users in the UAE send money abroad using digital platforms. This is a clear signal of growing adoption and room for innovation. As convenience improves and costs fall, the UAE is strengthening its role as a faster and more efficient connector of global communities.

Mobile wallets in the UAE

Digital wallets, contactless payments and QR code solutions are gaining strong traction across the UAE, marking a steady shift away from cash. As of 2024, 46% of the population uses mobile wallets such as FAB’s Payit Wallet, Apple Pay, Google Pay and Samsung Pay for daily purchases. The mobile wallets market is projected to reach $7.18 billion by 2028, as the country pushes toward a fully cashless economy by 2030. 

Two technologies are driving adoption: 

• Contactless payments now account for 84% of all transactions in the UAE. 
• QR code payments are gaining traction, powered by the Aani platform and bank-issued QR wallets for peer-to-peer transfers.

The UAE is making steady progress toward greater payment interoperability. Foreign wallets like India’s UPI, WeChat Pay and Alipay are accepted at thousands of local merchants, enabling tourists to pay through familiar apps while merchants receive settlement in local currency.

From metro stations to luxury malls, mobile wallets have become part of daily life, bringing the UAE closer to its vision of a fully digital, connected payments future.

Real-time payments in the UAE

Real-time payments (RTP) are transforming the way money moves in the UAE, enabling faster transactions both domestically and across borders. The country introduced its first instant payment scheme, Immediate Payment Instruction (IPI) in 2019 to enable 24/7 interbank transfers.Since its launch, adoption has gained momentum, driven by infrastructure upgrades and targeted awareness campaigns. 

A major catalyst in RTP adoption came with the launch of Aani. Now used by more than 70 financial institutions and marking a significant step forward in the UAE’s digital payments journey, Aani offers seamless peer-to-peer transfers and has laid the groundwork for more advanced services. The UAE is also expanding its real-time capabilities across borders. It is testing CBDC-based corridors with partners like India to enable instant, round-the-clock settlements for trade. At the same time, the country is exploring links with regional RTP networks such as Buna, reinforcing its central role in the emerging global web of instant value exchange.

Ecommerce in the UAE

The UAE’s ecommerce sector is growing rapidly, fueled by a tech-savvy population, robust digital infrastructure and supportive government initiatives. In 2024, the ecommerce market size reached $10.8 billion and is projected to hit $17 billion in 2025. 

Several factors are driving this momentum: ​

• Widespread digital payment adoption: Over 71% of ecommerce transactions are made using cards or mobile wallets, reflecting the country’s shift towards a cashless society.
• A young, digital-first consumer base: Gen Z and millennials are leading online spending, particularly in fashion, electronics and home goods.
• Advanced logistics and infrastructure: Ongoing investments in warehousing and delivery services are meeting the rising demand for speed and reliability. 

The UAE’s ecommerce ecosystem is also supported by purpose-built zones like Dubai CommerCity, which offer tailored incentives for digital commerce companies. As the nation deepens its digital transformation, ecommerce continues to reinforce the UAE’s leadership in the regional digital economy.​

The UAE’s payments future is global

The UAE is redefining how money moves across borders, sectors, and platforms. From its role as a remittance leader to its growing influence in RTP and digital wallets, the country is fast emerging as the Middle East’s global payments gateway. Positioned between Asia, Africa, and the West, the UAE enables seamless financial flows with unmatched reach and ambition.

At the core of this transformation is an ecosystem built on interoperability, speed and trust. These qualities align with Thunes’ Direct Global Network. Thunes enables real-time, cross-border transfers through local partnerships, supporting everything from remittances and business payments to mobile wallet interoperability. Our platform links global businesses, fintechs and consumers to the UAE’s dynamic payment rails, making money move faster, safer and more efficiently, be it for a migrant worker, a regional SME or a global payment provider. Looking to expand your reach in the UAE and beyond? Contact us about how Thunes is expanding the smart superhighway to move money around the world.