DUBAI - The UAE’s payments industry is poised to achieve significant growth, with total revenues projected to reach $27.3 billion by 2028, according to the latest Global Payments Report 2024 by Boston Consulting Group (BCG).

Despite a global slowdown in growth rates, the UAE continues to lead in the GCC, driven by its rapid digital transformation and strategic investments in the financial sector.

The Global Payments Report 2024 marks BCG’s 22nd annual analysis of the global payments industry, emphasising the need for decisive action in navigating a rapidly evolving landscape.

The report aptly titled Fortune Favors the Bold highlights the importance of adapting to shifting customer expectations, heightened regulatory scrutiny, and technological disruptions.

While growth is slowing globally, the UAE remains a bright spot in the region, continuing its high growth and innovation trajectory.

Globally, payments revenue growth is projected to slow significantly, with CAGR halving to 5% through 2028, resulting in a global payments revenue pool of $2.3 trillion. This marks a sharp decline from the 9% CAGR observed over the previous five years, which pushed the global revenue pool to $1.8 trillion in 2023.

North America and Europe are expected to experience the most significant slowdowns, with projected annual revenue increases of just 3%.

In contrast, regions like the Middle East, Latin America, and Asia-Pacific are forecasted to see higher growth, with the Middle East projected to grow at a 7% CAGR, driven by accelerating digital payments in emerging markets.

The UAE’s payments sector has seen robust growth in recent years. From 2018 to 2023, the country’s payments revenue grew from $9.8 billion to $18.8 billion, with a CAGR of 13.8%. By 2028, the UAE is projected to reach $27.3 billion in revenues, marking a 45% increase over the next five years.

Transaction volumes in the UAE are also forecast to rise significantly, from 1.7 billion in 2023 to over 3.1 billion by 2028, representing a 78% increase. The shift from cash-based to digital payments, spurred by government initiatives and increased fintech adoption, continues to drive this expansion.