The UAE Mobile wallet Market stood at USD 3638.21 million and is expected to increase with a robust CAGR of 12.12% during the forecast period. The growing usage of mobile devices, open banking, contactless payments, and digital currency are key forces driving the growth of the market. More than 90% of the country's population are using mobile wallet services by the end of the 2022, with 100% penetration projected by 2023. Government initiatives toward a digitalized and cashless country, the emergence of Bring Your Own Device (BYOD), an increase in smartphone use, and a large number of people without bank accounts are just a few of the key factors that are expected to provide lucrative growth opportunities to mobile wallet providers in the United Arab Emirates during the forecast period. The onset of the epidemic may be used to explain the enormous increase in digital payment transactions and card payments in the UAE.
Adoption of e-commerce platforms across the economies coupled with rising smartphone penetration has paved the way for increasing digital transactions and usage of mobile wallets. The rising application of mobile devices and technology-based solutions is anticipated to boost the demand for mobile wallets.
By using contactless payment methods, which operate by waving a card or a phone, many people chose to avoid direct physical contact with anything that might be contaminated by COVID-19. Furthermore, limitations such as the requirement to "shelter in place" have led many customers to switch from conventional brick and mortar stores to online marketplaces, which have always been supported by electronic payments. The use of digital payments has generally increased throughout the pandemic and possibly beyond. Voice-based technologies, such as virtual assistants, are becoming more common among consumers in both developed and developing countries as the demand for convenience grows. More apps may use the phone's voice AI and some of these apps may even support voice payments.
In 2022, Dubai region of UAE accounted for the largest share of 55.81% in the Mobile Wallet Market. This can be attributed to the region being a leader as it has the high number of transactions being done in the emirate due to trade significance and high industrialization coupled with high internet penetration in the region.
Abu Dhabi, the UAE's financial capital state, is the wealthiest emirate, and Dubai is the second-richest. The main port in the Middle East, i.e., Jebel Ali, is in Dubai, which is a major trade and tourist destination. In 2004, the Dubai International Financial Centre (DIFC) was established, and since then, Dubai has grown to become a major global center for service sectors like finance.
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