GCC payments market overview 2025: Deep dive into the Middle East payments landscape.

By Shona Sabah (Senior Manager - Strategic Growth Lead)

This article provides an insight-led, narrative overview of the GCC payments market, with a specific focus on the UAE and Saudi Arabia - the two countries shaping regional momentum. It explains the regulatory frameworks, digitalisation programmes, consumer trends, competitive dynamics, and emerging payment technologies that are redefining the Middle East payments landscape.

🌍 Why the GCC is becoming a global payments focus

The GCC is one of the world’s fastest-modernising payments regions, driven by government ambition, rapid digital adoption, and strong consumer readiness.

The Gulf Cooperation Council (GCC), comprising the United Arab Emirates (UAE), Saudi Arabia, Qatar, Kuwait, Oman, and Bahrain, has emerged as one of the world’s most dynamic regions for payments innovation.

While smaller than global regions such as APAC or North America, the GCC stands out for its rapid digital payments adoption, ambitious government-led transformation programmes, and strong consumer readiness for new payment technologies.

For banks and payment providers, understanding the GCC payments landscape is increasingly critical. The region is moving quickly toward a cashless future, scaling real-time payments infrastructure, mandating e-invoicing, and opening the door to open banking and new digital wallets.

📈 The GCC payments market: growth, digitalisation and consumer shifts

Digital payments in the GCC are scaling rapidly as government policy, consumer adoption, and merchant transformation reinforce one another.

The GCC payments market is experiencing sustained, high-velocity growth, driven by digitalisation agendas, fintech ecosystem expansion, and changing consumer expectations. The total value of digital payments in the GCC is projected to reach $227 billion by 2025, increasing at a CAGR of nearly 10% through 2030, when it is expected to exceed $360 billion¹.

This rapid growth is underpinned by three reinforcing factors:

Government-led digital transformation programmes

Governments across the GCC view payments modernisation as foundational to economic diversification. National cashless strategies, data frameworks, and unified payment systems create an environment where digital solutions scale quickly and consistently.

Strong consumer adoption of digital and mobile-first payments

The GCC has one of the world’s youngest and most digitally engaged populations. Consumers are eager adopters of contactless payments, digital wallets, instant payments, and BNPL, making the region a fertile testbed for new financial experiences.

Merchant digitalisation and e-commerce expansion

Merchants across the GCC, from micro-retailers to large conglomerates, are accelerating their payment capabilities. E-commerce penetration continues to rise, and expectations for seamless, secure, and multi-method payment experiences are stronger than ever.

Although digital adoption is high, the transition is uneven across markets. Credit cards dominate the UAE and Saudi Arabia, while debit cards and cash remain more significant in Kuwait, Qatar, and Oman. E-wallet penetration is rising but varies widely. These nuances create a landscape where providers must localise solutions to consumer, regulatory, and infrastructure realities.

📌 Why the UAE and Saudi Arabia set the direction for GCC payments

The UAE and Saudi Arabia are the GCC’s payments engines, shaping regulation, innovation, and market momentum for the wider region.

While every GCC country has a role to play in the region’s payments evolution, the UAE and Saudi Arabia stand out as the primary engines of innovation.

Together, they account for the largest consumer bases, transaction volumes, and regulatory sophistication in the region. Both have governments that view payments as strategic enablers of broader digital transformation, with policies designed to attract international players while fostering local competition.

Their approaches differ in structure but share the same ambition: to build world-class digital payment ecosystems that are secure, interoperable, and accessible. By examining these two markets in depth, we can better understand the blueprint driving growth across the GCC.

🔎 In focus: UAE payments landscape

The United Arab Emirates (UAE) has established one of the most progressive and innovation-oriented payments environments in the world.

Regulatory framework: a strategy built on modernisation and interoperability

The UAE Central Bank and the country’s freezone regulators (DIFC and ADGM) have collectively created a regulatory environment focused on harmonisation, interoperability, and digital-first financial services. Targets are bold, including the aim for 90% of all transactions to be digital by 2026 – driven by initiatives such as:

National Payment Systems Strategy (NPSS) - standardising payments infrastructure across the country

Required digital licensing for businesses - ensuring digital acceptance becomes the norm

Unified QR code and wallet standards - improving interoperability between banks and fintechs

E-invoicing expansion - accelerating business digitisation

Open banking frameworks in DIFC and ADGM - enabling data-sharing and embedded finance

The outcome is a balanced, opportunity-rich market — one where both established players and new entrants can scale, provided they align closely with regulatory goals and compliance requirements.

Competitive dynamics: a hybrid ecosystem of banks, fintechs, and global providers

The UAE payments market features a diverse mix of players:

Domestic banks such as Emirates NBD, Abu Dhabi Commercial Bank and FAB drive wallet adoption and merchant services

Fintechs including PayBy, YAP, Edfundo, and Network International lead embedded and mobile-first solutions

Global processors like Stripe, Checkout.com, Visa, and Mastercard provide cross-border and e-commerce infrastructure

Local wallet initiatives such as Aani and Payit support growing digital adoption across segments

This combination of regulatory alignment, competition, and collaboration is creating a fertile ecosystem where innovation is not only encouraged but actively enabled. For international entrants, partnership is the route to scale as those who connect their technology and expertise with local infrastructure and institutions are best placed to succeed.

Key payment trends in the UAE

Several trends define the current UAE payments trajectory:

E-commerce is accelerating, with payment choice influencing conversion and loyalty

Mobile wallet adoption is growing rapidly, expanding beyond retail into transit, rewards, and peer-to-peer payments

BNPL usage is widespread, driven by affluent but convenience-seeking younger consumers

Super apps like Careem integrate payments across mobility, food delivery, and retail

Contactless and QR payments continue to grow rapidly across all retail formats

What’s next for UAE payments?

The UAE is likely to lead in areas such as wallet interoperability, cross-border payments, open finance, digital identity verification, and embedded financial experiences. For payment providers, the most significant opportunities lie in e-commerce enablement, digital onboarding, and data-driven merchant services.

🔎 In focus: Saudi Arabia payments landscape

If the UAE’s progress is fuelled by experimentation and collaboration, Saudi Arabia’s transformation is driven by structure and scale.

Regulatory framework: clear, centralised, and future-focused

Saudi Arabia’s payments evolution is shaped by Vision 2030, a national programme under the guidance of Saudi Central Bank (SAMA) that positions digital payments as central to economic modernisation. Key components include:

Payments & Payment Services Law and its Implementation Regulations

SAMA licensing for payment service providers, creating robust compliance expectations

MADA interoperability standards, ensuring consistent acceptance at the point of sale

E-invoicing mandates, accelerating B2B digitisation nationwide

Personal Data Protection Law (PDPL), influencing data, identity, and consent frameworks

SAMA Open Banking Lab, enabling the next wave of embedded financial services

Together, these policies create a market that is secure, predictable, and scalable, which is highly attractive for both domestic and international players looking to grow sustainably.

Competitive dynamics: local scale meets global momentum

Saudi Arabia’s payments ecosystem unites:

Large domestic banks such as Al Rajhi Bank, Riyad Bank, and the National Commercial Bank deliver widespread acceptance and acquiring

Fintech leaders like STC Pay, HyperPay, and Tamara driving digital wallet and BNPL adoption

Global providers expanding e-commerce capabilities and cross-border flows

MADA, the national payments scheme, ensuring interoperability across cards and terminal infrastructure

This blend of local strength, fintech innovation, and international infrastructure makes Saudi Arabia a complex but well-structured market, with ample space for collaboration and growth.

Key payment trends in Saudi Arabia

Several trends are defining Saudi Arabia’s payments shift:

Non-cash payments now exceed 75–80% of retail transactions², showcasing rapid digitalisation

E-commerce spend via MADA grew over 25% YoY³, fuelled by logistics, marketplaces, and consumer behaviour

Wallet adoption is mainstream with STC Pay and Apple Pay supporting everything from bill payments and transfers to BNPL and even public transport

BNPL usage is expanding, especially among younger consumers

Instant payments and cross-border remittances are growing as expats and businesses demand faster flows

Open banking is unlocking personalised and embedded financial experiences

What’s next for Saudi payments?

Saudi Arabia is positioned to lead the GCC in real-time payments, unified payment rails, large-scale merchant digitalisation, and national digital identity-driven payment experiences. Providers entering the market must localise solutions, meet strict licensing expectations, and integrate seamlessly with MADA and SAMA frameworks.

🔭 Outlook: what the GCC payments market will look like in 2025 and beyond

The GCC is transitioning quickly toward completely digital, interoperable, and instant payment ecosystems. Across the UAE and Saudi Arabia, the direction of travel is clear:

Digital wallets will continue expanding

Merchant digitalisation will accelerate

Real-time payments and open banking will shape new consumer and commercial experiences

E-invoicing, identity frameworks, and regulatory standardisation will push digital adoption further

Cross-border payment innovation will become a major differentiator

For payment providers, success in the Middle East requires regulatory understanding, local partnerships, culturally aligned go-to-market strategies, and a commitment to solving merchant and consumer pain points with insight-led, adaptable solutions.

📞 Get in touch

If you’re exploring opportunities to enter or expand within the GCC payments ecosystem – or any other region - and want to understand local consumer behaviour and regulatory frameworks in more depth, we’d be happy to help. Connect with Shona Sabah on LinkedIn or book a call today to discuss how we can support your growth strategy.