UAE Shoppers Flocking to Alternative Payments Amid Rise of Stablecoins and Crypto

The payments landscape in the UAE is undergoing a significant shift, with shoppers increasingly moving beyond traditional credit and debit cards. According to retail industry executives, alternative payment methods such as telco wallets and cryptocurrencies are gaining traction. Paul Carey, executive vice-president for cards, payments and fintech at Al-Futtaim, noted that the payments landscape has 'shifted massively' over the past five years, with cards remaining the predominant way to pay but other options growing quickly.

The trend is driven by the rise of online spending, with between 30 and 50 per cent of spending across Al-Futtaim's businesses now taking place online. Carey added that cryptocurrencies and stablecoins are also beginning to appear in the market. Al-Futtaim has partnered with Indian company Juspay as its payment orchestration partner across its brands and markets.

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.