UAE Payments Landscape Shifts as Shoppers Favour Alternative Methods

Shoppers in the UAE are increasingly turning to alternative payment methods, with a significant shift away from traditional cards, say industry executives. According to Paul Carey, executive vice-president for cards, payments, and fintech at Al-Futtaim, the payments landscape has 'shifted massively' over the past five years. Cards remain the predominant way to pay, but other options are growing quickly.

Between 30 and 50 per cent of spending across Al-Futtaim's businesses is now online, with the figure varying by business. Carey added that crypto and stablecoins are also beginning to appear. The UAE has launched Jaywan, its local debit card, while instant payment options are emerging.

Nakul Kothari, head of Asia-Pacific and the Middle East at Juspay, noted that the growth of cross-border commerce in the region is adding to the complexity for merchants. A study by Nium and Celent found that Middle East banks expect stablecoins to account for an average of 10.4 per cent of outgoing cross-border business payment volumes by 2035, up from 1.6 per cent in 2025.

Tokenised deposits are expected to rise from 1.2 per cent to 6.2 per cent, while central bank digital currencies are expected to increase from 0.6 per cent to 4.1 per cent. Together, these new forms of money could represent 20.7 per cent of payment volumes by 2035, compared with 3.4 per cent in 2025. Banks expect Swift's share to fall from 77.2 per cent to 55 per cent.