A recent report by Amazon Payment Services indicates a rapid growth in digital payments and a decline in the use of cash in the United Arab Emirates (UAE). The report highlights that approximately 20% of people in the UAE have reported a decrease in cash usage, marking a revolution in the country’s payment landscape. The report also notes that digital payments across key sectors in the UAE are projected to grow at a compound annual growth rate of 18.3% from 2021 to 2023.
Gen Z individuals in the UAE are at the forefront of this trend, with nearly half of them using digital or mobile wallets for daily payments. The report suggests that the high internet penetration rate, the significant fintech boom, the stable economy, and the large young population in the UAE and the region are driving the growth in digital payments.
Additionally, the UAE is leading digital banking in the region and is rapidly developing into a major global fintech hub with supportive government policies. The report further highlights that partnerships between banks and fintech companies are likely to drive innovative products and facilitate easier adoption of new fintech solutions, including digital payments.
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