Arab Financial Services (AFS), a leading provider of digital payment solutions in the Middle East and Africa, has made a significant move by expanding into the UAE. This expansion comes at a crucial time when digital payment solutions are becoming increasingly important in fostering economic growth and financial inclusion. The Central Bank of UAE has granted AFS a Retail Payment Services License, enabling the company to offer a wider range of payment solutions to both consumers and businesses. This development aligns with the UAE’s vision of becoming a fully cashless society by 2030, with digital payments taking a front seat in the nation’s financial frameworks.
AFS has set ambitious goals to collaborate closely with regulatory authorities and local businesses in the UAE. Through these partnerships, AFS aims to establish an inclusive and advanced digital payment ecosystem that will greatly benefit the country’s fintech industry. The company has also secured a substantial funding injection of USD 150 million, which will be crucial in leveraging cutting-edge technology to provide secure, user-friendly payment solutions. These measures will enhance financial accessibility for a broader segment of the population, significantly contributing to the nation’s economic growth.
The UAE’s shift from cash to digital payments mirrors a global trend driven by various factors, such as high internet penetration, a thriving fintech environment, and overall economic stability. Digital wallets, credit and debit cards, and Buy Now Pay Later (BNPL) solutions are rapidly replacing physical cash transactions. This shift has been considerably accelerated since 2020, and projections indicate that by 2030, the UAE will likely transition to a fully cashless society. During this period, the total number of transactions is expected to surge by 94%, from around 644 million to over 1.2 billion transactions.
Market data supports this optimistic forecast for digital payments in the UAE. According to Statista, the total transaction value of the UAE’s digital payments market is projected to reach USD 80.37 billion by 2025. This growth will continue with a compound annual growth rate (CAGR) of 13.80% from 2025 to 2029, culminating in an estimated market value of USD 134.80 billion by 2029. The Mobile POS Payments segment is expected to be the largest, reaching an estimated transaction value of USD 37.63 billion by 2025.
In conclusion, AFS’s expansion into the UAE marks a pivotal advancement in the nation’s digital payments landscape. By fostering strategic partnerships and utilizing significant financial backing and technology, AFS is well-positioned to contribute substantially to the UAE’s shift towards a cashless economy. This move supports both local businesses and the broader economic framework with secure and accessible payment solutions, paving the way for a more financially inclusive future.