The future of payments
Global Instant Payments Growth: The total value of instant payments worldwide is projected to reach $158 trillion in 2025, growing at a compound annual growth rate (CAGR) of 12% from $100 trillion in 2021.
Cash Transactions Decline: The value of cash transactions globally has dropped significantly, from $11.6 trillion in 2018 to $7.7 trillion in 2022.
Digital Payment Transactions in UAE: From 2014 to 2019, digital payment transactions in the UAE grew by 9% annually, outpacing Europe’s growth rate of 4% during the same period.
India’s UPI Success: Between 2016 and 2022, India’s Unified Payments Interface (UPI) facilitated 7.3 billion transactions worth INR 11.9 trillion ($142.7 billion).
Middle East Cash Attachment: Despite a high attachment to cash in the Middle East at 44% in 2021, this figure is rapidly falling, representing a significant opportunity for financial institutions.
E-commerce Market in UAE: The UAE’s e-commerce market is estimated to grow by 16.4% in 2023, reaching AED 107.6 billion ($29.3 billion).
Speed of Cross-Border Payments: Swift processes 90% of its cross-border payments within an hour, surpassing the G20’s end-to-end target of 75% by 2027.
Adoption of Digital Wallets: Digital wallets are the most popular payment method for point-of-sale and e-commerce transactions globally, accounting for 49% and 32% of transaction values, respectively.
Open Banking in UAE: In the UAE, Mashreq has developed APIs that allow corporates to connect with the bank and send payments instantly.
Reduction in Payment Market Timelines: Technological advancements have significantly reduced payment market timelines, decreasing the process from 18 months to just three months.
