UAE's Real-Time Payments Surge: A Path to a Cashless Future

In 2023, the UAE experienced a 53% year-on-year increase in real-time payment transactions, reaching 58 million, and is forecasted to reach 162 million by 2028, as per a recent report. The 2024 Prime Time for Real-Time report, released by ACI Worldwide in collaboration with GlobalData, predicts that the total value of real-time payments in the UAE will escalate from $43 billion in 2023 to $132 billion by 2028. Santhosh Rao, Senior Vice-President, Sales at ACI Worldwide MEASA, highlighted that real-time payments reduce friction, enhance liquidity, and foster economic growth and financial inclusion. However, their true potential is only achievable when banks move beyond traditional siloed systems. With real-time payment systems now active across all GCC countries, local banks are at a critical point where they need to utilize technology as a driver for innovation. This innovation requires modernizing and future-proofing their infrastructure to fully capitalize on the benefits of real-time payments.

The rise in real-time and electronic payments indicates the UAE’s strong move towards a cashless economy. In 2023, electronic transactions made up over 37% of all transactions in the UAE and accounted for 78% of the transaction value. Real-time payments represented 4% of these electronic transactions in the UAE last year and are expected to grow to 7% by 2028. The ACI report envisions a future where cash transactions will decrease to just 20% of the total transaction value by 2028. Rao emphasized that active collaboration is essential for a robust real-time payment ecosystem, requiring banks to balance competition and cooperation with emerging market players. Successful real-time payment systems, like India’s, demonstrate various methods such as QR codes, mobile apps, and online accounts, pushing the limits of innovative uses. With the Middle East at the forefront of real-time payments growth, financial institutions should take the opportunity to learn from these successes and develop their own innovative real-time payment solutions.