Media ININ Economy We Trust
Aug 27
The trends of the “cashless” economy, which is witnessing a great expansion and spread, has accelerated the demand for financial technology solutions to meet the aspirations of digital generations and establish new concepts for banking services away from traditional systems, as the UAE has become a regional and global leader in the use of smart phones and mobile internet.
According to experts in the financial technology and digital payments sector, digital payments in the country are expected to reach 143 billion dirhams in 2027, and the UAE ranks first in the region in the sector, supported by the state’s directions and strategies for using financial technologies, and providing a strong legislative and infrastructure for companies operating in the sector and keeping pace with Global digital transformation.
Experts say that the provision of technologies and systems contributed to accelerating the UAE’s leadership in the sector in the region and placing it among the best in the world in financial technology and digital payments, which accordingly contributed to accelerating financial transfers and dispensing with cash payments, which in turn saved large operating costs for all government and private sectors alike. whether.
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mobile internet
Muhannad Abweni, Founder and CEO of HyperPay, believes that the digital payments market in the UAE continues to grow strongly, supported by the spread of the mobile Internet through smart phones and mobile devices and the completion of contactless payments, in addition to the large spread of electronic shopping, pointing to the expectation of the growth of the payments market. In the country, at a compound annual growth rate of 8.02%, to reach 143 billion dirhams in 2027.
He added: Many factors support the growth of the electronic payment market in the UAE, most notably the increased adoption of modern technologies, changing consumer trends, and government initiatives that support and encourage the adoption of electronic payment methods. He said: Research shows that 51% of the post-millennial generation in the UAE use digital or mobile wallets for their daily payments.
Abweni added: “Technical innovations in the electronic payment sector and financial technology based on artificial intelligence include several fields and applications, including data analysis and smart forecasts that are used to derive future trends with the aim of helping to make strategic financial decisions in an accurate and smart manner, in addition to providing customized offers and services.” meet the needs of users.
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new models
For his part, Hossam Kayal, Chief Revenue Officer at Foo, said: “The current and future financial technology technologies in the UAE have shown new models such as: digitizing the customer because there is no need to visit bank and exchange branches or send people to obtain the signature, to help verify From the customer’s identity quickly and smoothly, the technology of digital wallets, payment loans and various applications, which enable the conversion from cash payment to digital payment and building digital channels for traditional banks or financial service providers to increase efficiency and provide distinctive and fast service to the customer, in addition to creating new services on digital platforms and launching them in the market the local”.
He added: With regard to future technologies, the use of virtual assets will begin to be spread and presented through a license to banks and companies dedicated to digital currencies, and we will also witness a significant expansion in the use of artificial intelligence to identify the pattern of customers’ uses to help respond quickly to their questions and deal with them professionally, as well as fight different patterns. from financial fraud.
He expected the growth of the traditional financial services market in the UAE this year between 5 and 10%, at a time when a significant growth in the financial and digital technology services market is expected between 20 and 40%, which means that the trends and patterns of technical users will impose themselves on the sector as a whole.
growth opportunities
In turn, Vishwas Patil, CEO of Envibem Avenues, said: “The payments and financial technology market in the UAE is expected to grow at a compound annual growth rate of 20% during 2023, which provides great growth opportunities for financial technology and payments companies, and that the company currently has more than 5,000 client in the country.
He explained, according to Statista data, that the value of digital payments in the GCC countries is expected to reach $168 billion in 2027, prompting financial technology companies in the field of payments to use advanced technology and increase expansion capabilities while integrating high levels of security and protection.
