UAE Mobile Wallet Market By Type (Semi-Closed, Open, Closed), By Technology (Quick Response (QR) Codes, Near Field Communication (NFC), Magnetic Secure Transmission (MST), Others), By Ownership (Telecom Operators, Device Manufacturers, Tech Companies, Banks), By Application (Entertainment & Travel, Bill Payments, Food & Drinks, Groceries, Peer-to-Peer Transfer, Others), By Region, Competition, Forecast and Opportunities, 2020-2030F

Market Overview

UAE Mobile Wallet Market was valued at USD 4.18 Billion in 2024 and is expected to reach USD 8.28 Billion by 2030 with a CAGR of 12.12% during the forecast period.

The UAE mobile wallet market is experiencing rapid growth, driven by the country’s increasing digitalization, high smartphone penetration, and strong government push toward a cashless economy. As one of the most digitally advanced economies in the Middle East, the UAE has seen a surge in consumer adoption of mobile wallets due to their convenience, security, and seamless integration with various payment platforms. The Central Bank of the UAE has played a pivotal role in fostering the sector’s growth through regulatory support and the launch of digital payment infrastructure such as the Instant Payment Platform (IPP) and Al Etihad Payments’ Aani system, which enables real-time transactions across banks. These initiatives aim to reduce the country’s dependency on cash and support the UAE Vision 2031 for a digital and sustainable economy.

The market is highly competitive, with a blend of local, regional, and international players. Prominent local wallets include Payit by First Abu Dhabi Bank, Klip backed by a consortium of major UAE banks, and e& money (formerly Etisalat Wallet), offering diverse features such as peer-to-peer transfers, utility bill payments, international remittances, and QR code–based transactions. Startups like Ziina and Noon Pay have also entered the space, targeting younger demographics and small merchants with user-friendly and cost-effective solutions. Meanwhile, global tech companies such as Apple Pay, Google Pay, and Samsung Wallet have rapidly gained ground in the UAE by integrating with major banks and enabling NFC-based in-store and in-app payments. These wallets are particularly popular among users seeking secure biometric authentication and integration with broader digital ecosystems.

Telecom and banking institutions are increasingly launching “super apps” that combine multiple services—including e-wallets, digital banking, and e-commerce—within a single platform. This convergence trend is expected to further boost user engagement and expand use cases for mobile wallets beyond simple payments to include loyalty programs, ticketing, transport fare collection, and cross-border money transfers. Additionally, the post-COVID-19 shift toward contactless payments and e-commerce has significantly accelerated digital wallet adoption across both urban and semi-urban areas. The rising awareness of cybersecurity and data privacy has also led providers to invest in robust encryption technologies, boosting user confidence.

Key Market Drivers

Strong Government Support and Digital Infrastructure

The UAE government plays a pivotal role in driving mobile wallet adoption through regulatory frameworks and digital infrastructure development. The Central Bank’s rollout of the Instant Payment Platform (IPP) has led to a rise in transaction volumes from 2.4 million in 2019 to over 64 million in 2023. Simultaneously, the transaction value jumped from AED 6 billion to more than AED 160 billion (USD 43.57 billion). The introduction of the Digital KYC platform has streamlined onboarding processes for digital wallets, reducing processing time by nearly 60%. The Payment Systems Policy targets a 70% rise in non-cash transactions by 2025. Furthermore, over 90% of federal entities now offer digital payment options for government services, increasing wallet integration across sectors. Government-driven campaigns have also contributed to over 65% of utility and licensing payments being completed digitally. This foundational support builds trust among users and ensures scalability for providers, making the UAE an ideal market for mobile wallets.

Shift Toward Contactless and Digital Consumer Behavior

Consumer preferences have dramatically shifted in favor of contactless and mobile transactions. About 88% of UAE residents have used at least one form of emerging digital payment in the past year, with 39% regularly using mobile wallets. Around 78% of consumers use contactless cards or wallets for day-to-day spending. In parallel, cash transactions now account for just 23% of total payments, reflecting a significant shift to digital. Nearly 66% of users reported increasing their use of mobile wallets for grocery, dining, and bill payments. On the merchant side, 49% of small and medium enterprises (SMEs) now accept digital wallets. Additionally, 67% of customers stated that mobile wallets provide more convenience than traditional payment methods. These evolving preferences create a self-reinforcing cycle that fuels widespread wallet adoption and consistent usage across demographics.

E-Commerce Expansion and Retail Integration

The UAE's booming e-commerce market is a critical catalyst for mobile wallet usage. The e-commerce sector recorded a 27% annual growth in 2023, pushing more consumers to digital platforms. Mobile wallets are now used in approximately 41% of online transactions. QR-code based transactions dominate wallet usage, accounting for nearly 53% of all mobile payments, while NFC-based payments follow at 35%. Over 54% of small retailers now accept mobile wallets, up from just 33% three years ago. Additionally, 70% of merchants using mobile wallet solutions report improved customer engagement and revenue performance. The rise of omnichannel retail strategies is also fueling wallet integration, with nearly 62% of retailers enabling digital wallet payments both online and in-store. As consumers increasingly shop across digital and physical touchpoints, the convenience and flexibility of mobile wallets become essential.

Advancements in Fintech, Security & Biometric Technology

Mobile wallets in the UAE are being transformed by the integration of advanced technologies such as AI, biometrics, blockchain, and QR/NFC protocols. Around 71% of users feel more secure using biometric authentication—such as fingerprint or facial recognition—with 87% actively using fingerprint-based approvals. Approximately 62% of users have made at least one biometric-authorized purchase in the last six months. Fraud detection systems powered by AI have prevented financial losses exceeding AED 1.2 billion (USD 0.33 billion) over the past year. Wearable device payments are also gaining momentum, with 18% of consumers having used smartwatches or fitness bands for transactions. Additionally, blockchain-enabled wallets have seen a 32% uptick in user growth due to enhanced transparency and security. These innovations not only reinforce user trust but also expand wallet use cases in high-value and recurring payments, driving sustained market growth.

High Expat Population and Cross-Border Remittance Needs

The UAE's large expatriate population has led to increasing demand for mobile wallets with strong remittance capabilities. The country sends over USD 43 billion annually in remittances, making it one of the top outbound markets globally. Mobile wallets now account for over 20% of these remittance transactions. About 72% of users prefer using mobile apps for transferring funds internationally due to lower fees and faster processing. The introduction of UPI-enabled payment terminals in all LuLu and Al Maya stores has further simplified transactions for Indian expats, who make up about 30% of the population. Wallets such as Payit, e& money, and Careem Pay have launched dedicated corridors to India, Pakistan, and the Philippines. In fact, recurring remittance setups have grown by 28% year-on-year, with average monthly wallet-based transfers now exceeding AED 1,500 per user. This demand for affordable, fast, and secure cross-border payments reinforces the necessity and appeal of mobile wallets in the UAE.

Download Free Sample Report

Key Market Challenges

Limited Financial Inclusion Among Low-Income and Blue-Collar Workers

Despite the UAE's advanced digital infrastructure, a significant portion of its low-income and blue-collar workforce remains outside the mobile wallet ecosystem. Many of these workers lack access to smartphones with NFC or QR capabilities, and others have limited digital literacy, making it difficult to use wallet apps efficiently. While over 95% of UAE residents have mobile phone access, only a fraction of the labor population owns smartphones compatible with mobile wallet platforms. Language barriers and a lack of educational outreach further compound this issue. Additionally, these workers often rely on informal remittance channels or cash-based systems, reducing the incentive to switch to formal mobile wallets. Some wallets require national ID documentation or minimum balance thresholds, which can exclude certain low-wage users, especially those in temporary or undocumented employment situations. As a result, wallet providers struggle to tap into this large but underserved demographic. Addressing this challenge will require government incentives, simplified wallet apps in multiple languages, and partnerships with labor camps, employers, and NGOs to improve onboarding, trust, and ease of use.

Fragmentation and Lack of Interoperability Between Wallets

The UAE mobile wallet ecosystem is highly fragmented, with numerous wallet providers—local banks, telecom operators, fintech startups, and global tech giants—offering competing services with minimal integration. While this fosters innovation, it leads to user confusion and inefficiencies. Customers often find it difficult to transfer money or make payments across different wallets. For example, a Payit user may not be able to send funds directly to someone using e& money or Ziina. Additionally, merchant acceptance is inconsistent; some stores support Apple Pay and Samsung Wallet, while others are limited to PayBy or Klip. This lack of standardization discourages widespread adoption and creates friction in daily transactions. Although the UAE’s Central Bank introduced systems like Aani to promote interoperability, adoption remains at an early stage. The absence of a unified QR code system or a common acceptance standard also makes it challenging for SMEs to cater to all wallet users. Without improved interoperability, user experience remains limited, and merchant enthusiasm may wane due to the burden of managing multiple platforms and transaction systems.

Cybersecurity Risks and Consumer Trust Issues

As mobile wallets handle sensitive personal and financial data, cybersecurity remains a critical concern. UAE consumers are increasingly aware of digital fraud, phishing, and identity theft—especially given rising incidents across the Gulf region. While wallets integrate biometric authentication, tokenization, and two-factor verification, the evolving nature of cyber threats means that even small vulnerabilities can have significant consequences. In 2023, several UAE residents reported cases of unauthorized wallet access due to SIM swap fraud and fake QR codes. Additionally, users who are unfamiliar with digital security practices are more vulnerable to phishing attacks impersonating trusted platforms. The increasing use of open banking APIs and third-party integrations adds further exposure points. While major providers have invested heavily in AI-driven fraud detection, smaller players may lack the resources to maintain robust defenses. A single high-profile breach can damage public trust and slow adoption across the market. Therefore, wallet providers must constantly invest in cybersecurity upgrades, user education campaigns, and collaborative defense systems to sustain trust and ensure long-term resilience.

Low Merchant Acceptance Outside Urban Centers

While mobile wallets are widely accepted in major cities like Dubai and Abu Dhabi, their penetration in smaller emirates and rural areas remains limited. Many small and medium-sized merchants in these regions either lack the technical infrastructure to accept digital payments or are unaware of the benefits of wallet integration. The cost of setting up POS systems or QR-code readers is seen as a financial burden, especially among businesses operating on thin margins. In addition, some merchants continue to prefer cash to avoid transaction fees, delays in settlement, or tax documentation. As a result, wallet usage remains confined to modern retail chains, ride-hailing, and e-commerce platforms, leaving daily-use cases like local grocery stores, taxis, and food stalls underserved. Even among digitally enabled merchants, inconsistent support across different wallet platforms further complicates integration. Until merchant onboarding becomes more affordable, standardized, and incentivized, mobile wallets will struggle to achieve full ecosystem penetration, especially in underserved and non-tourism-focused regions.

High Competition and User Retention Challenges

The UAE mobile wallet market is highly competitive, with over a dozen players including banks (Payit, Klip), telecoms (e& money, du Wallet), startups (Ziina, PayBy), and global tech firms (Apple Pay, Google Pay, Samsung Wallet). While competition drives innovation, it also creates a saturated environment where user acquisition becomes expensive and retention becomes challenging. Consumers often download wallets to take advantage of promotions or discounts but switch or uninstall once incentives expire. In fact, churn rates for wallet apps can exceed 40% within six months of onboarding. Moreover, many wallets offer overlapping features—P2P transfers, bill payments, QR codes—leading to limited differentiation. Smaller players without strong institutional backing struggle to maintain visibility and customer engagement. Without a compelling ecosystem of services (e.g., loyalty programs, multi-service integration), many apps fail to become “sticky.” Additionally, acquiring users through digital marketing, influencer tie-ups, and retail promotions significantly increases operating costs. To remain competitive, wallet providers must continuously innovate and create personalized value beyond basic transactions to retain users and ensure sustainable growth.

Key Market Trends

Increasing Adoption of Biometric and Contactless Payment Technologies

The UAE’s mobile wallet market is embracing biometric and contactless technologies at a fast pace. Driven by a tech-savvy population and health-conscious behavior post-COVID-19, there has been a notable rise in fingerprint, facial recognition, and voice-based authentication features. More than 87% of UAE consumers are comfortable using fingerprint authentication, and 62% have used facial recognition for payment in the last year. Contactless cards and wallets are now accepted at over 80% of retail points-of-sale across major cities. In addition, wearable payments—using smartwatches and fitness bands—have grown among younger consumers, with 18% of digital payments made through wearables. Wallets such as Samsung Wallet and Apple Pay have capitalized on this trend, integrating secure biometric access and seamless tap-to-pay functionality. Moreover, biometric verification is being combined with AI-powered fraud detection, enhancing both security and ease of use. As consumers grow increasingly concerned about digital security, biometric features not only improve trust but also streamline transactions, encouraging repeated wallet usage. This trend is set to evolve further as the UAE continues to lead the MENA region in tech adoption and smart city initiatives.

Expansion of Cross-Border Payment Capabilities via Mobile Wallets

The UAE is a major hub for expatriates, making cross-border remittances a vital mobile wallet function. Mobile wallet providers are increasingly integrating real-time international transfer features, offering lower costs and faster delivery than traditional banks. More than 30% of all remittances in the UAE are now processed through digital channels, and this figure continues to grow year-over-year. Wallets such as Payit, Careem Pay, and e& money have established corridors to India, Pakistan, the Philippines, and several African nations. The introduction of UPI support at major retail outlets like LuLu and Al Maya in 2024 has also created a seamless in-store payment experience for Indian expats. Meanwhile, real-time FX rate visibility, no hidden fees, and mobile notifications have made wallets the preferred remittance tool for over 65% of expatriate workers under the age of 40. Blockchain integration and digital KYC enhancements have further increased trust and compliance in international wallet transactions. This trend reflects how mobile wallets are not only becoming tools for local spending but also crucial channels for global financial inclusion. As wallet providers expand partnerships with international financial institutions, expect wider reach and greater accessibility in digital remittances.

Accelerated Digital Wallet Usage Among SMEs and Micro-Merchants

Small and medium enterprises (SMEs) and micro-merchants are increasingly adopting mobile wallets for payment acceptance, especially in sectors like food delivery, grocery, salons, and street retail. As of 2024, more than 54% of SMEs in the UAE accept some form of digital wallet payment, compared to just 33% three years ago. Initiatives by wallet providers to offer low-cost QR code payment systems and minimal onboarding requirements have made it easier for micro-merchants to digitize. Platforms like PayBy, Noon Pay, and Ziina have targeted small businesses with tailored solutions, including instant settlement, zero-setup fees, and loyalty tools. Furthermore, over 67% of merchants that have adopted mobile wallets report increased footfall and customer satisfaction. With digital wallets reducing the need for POS hardware, even home-based and freelance sellers are beginning to accept wallet-based payments. Government initiatives promoting financial inclusion and the push toward cashless retail—especially in events like Expo 2020 and Dubai Shopping Festival—have further accelerated this trend. As competition intensifies, wallet providers are also bundling value-added services such as analytics, inventory management, and microloans, creating an embedded financial services ecosystem for SMEs.

Growing Influence of Youth and Gen Z in Driving Wallet Adoption

The younger generation in the UAE, especially millennials and Gen Z, are playing a major role in shaping the mobile wallet market. With over 65% of the population under the age of 35, this demographic is digitally native, highly mobile-dependent, and convenience-driven. A recent consumer behavior study showed that 72% of Gen Z users in the UAE prefer digital payments over cash, and over 60% have used more than one mobile wallet in the last year. Their demand for instant gratification, gamified experiences, and personalized offers has pushed wallet providers to rethink user interface design and loyalty integrations. Apps like Ziina and Careem Pay cater specifically to this group with peer-to-peer transfers, minimalistic UIs, and cashback incentives. Social commerce features—such as sending money via chat or splitting bills digitally—are becoming standard among younger users. In addition, this group actively uses wallets for digital subscriptions, micro-purchases, and buy-now-pay-later (BNPL) services. With Gen Z increasingly influencing household decisions and representing the future workforce, their digital payment preferences are setting the tone for future innovations and mobile wallet adoption strategies across the UAE.

Segmental Insights

Type Insights

Semi-Closed segment dominated in the UAE Mobile Wallet market in 2024 due to its unique combination of flexibility, security, and regulatory alignment. Semi-closed wallets allow users to perform digital transactions with a wide range of merchants, both online and offline, without permitting direct cash withdrawals. This balance of accessibility and control makes them ideal for the UAE’s digitally progressive and security-conscious environment.

One of the main drivers behind the dominance of semi-closed wallets is their compatibility with the UAE’s regulatory landscape. The Central Bank of the UAE has issued clear guidelines for semi-closed wallet operations, providing a secure and trusted framework for financial institutions and fintech players to scale their offerings. As a result, major players like Payit, e& money, Careem Pay, and Ziina have adopted the semi-closed model to provide services such as bill payments, QR-based merchant payments, peer-to-peer transfers, and limited cross-border remittances—without the complexity of full banking integration.

Moreover, semi-closed wallets offer high convenience for everyday consumer transactions. With over 80% of POS terminals in the UAE now accepting digital payments, users can easily transact in malls, grocery stores, transport services, and e-commerce platforms. These wallets also integrate loyalty programs, cashbacks, and spend tracking tools, making them more engaging for consumers. Additionally, the semi-closed structure provides a controlled environment that reduces the risk of misuse or fraud, thereby increasing trust among users.

Semi-closed wallets are also more accessible to non-bank customers and blue-collar workers, especially with simplified KYC and mobile onboarding processes. Given that over 60% of mobile wallet users in the UAE fall under the age of 40, user preference for simplicity, speed, and security further reinforces the popularity of this segment. Thus, the semi-closed model strikes the ideal balance between regulatory compliance, ease of use, and security—making it the leading segment in the UAE mobile wallet market in 2024.

Technology Insights

Quick Response (QR) Codes segment dominated the UAE Mobile Wallet market in 2024 due to its affordability, ease of deployment, and widespread merchant acceptance. QR codes require minimal infrastructure, making them ideal for SMEs and micro-merchants across urban and suburban areas. Over 65% of retail outlets and 70% of food vendors adopted QR-based payment systems for their low cost and contactless nature. Consumers also prefer QR payments for speed and convenience, especially in peer-to-peer and small-value transactions. The Central Bank’s push for unified QR code standards further boosted interoperability and adoption across digital wallet platforms..

Download Free Sample Report

Region Insights

Largest Region

Abu Dhabi dominated the UAE Mobile Wallet market in 2024 driven by strong government support, high digital adoption, and a thriving financial ecosystem. As the capital city and administrative hub of the UAE, Abu Dhabi has been at the forefront of implementing smart government initiatives and cashless economy policies. Strategic efforts under "Abu Dhabi Digital Authority (ADDA)" and "Ghadan 21" economic stimulus programs have accelerated fintech adoption, encouraging mobile wallet use in both public and private sectors.

Abu Dhabi’s residents demonstrate high levels of digital literacy and smartphone penetration, with over 98% of the population owning internet-enabled mobile devices. This has supported the rapid adoption of mobile wallets like Payit, e& money, and Careem Pay, which are widely accepted across utility payment portals, public transportation systems, and government service platforms. Additionally, many government transactions—such as license renewals, parking fees, and healthcare payments—are now processed through mobile wallets, boosting usage volume in the emirate.

The city’s robust financial infrastructure, including the presence of leading banks and regulators like the Abu Dhabi Global Market (ADGM), has fostered a conducive environment for fintech innovation and digital payments. Over 70% of retail outlets and restaurants in Abu Dhabi now accept wallet-based QR or contactless payments, including supermarkets, healthcare providers, and entertainment venues.

Moreover, Abu Dhabi’s large expatriate workforce has fueled demand for remittance-enabled mobile wallets. With wallet platforms offering multi-language support, low transfer fees, and real-time cross-border capabilities, the city has seen higher engagement levels compared to other emirates.

Abu Dhabi’s strategic integration of smart city initiatives, digital governance, and consumer-centric payment technologies has made it the epicenter of mobile wallet usage in the UAE, driving both transaction volumes and active user base growth in 2024.

Emerging Region

Sharjah is the emerging region in the UAE Mobile Wallet market in the coming period due to its expanding SME base, rising digital literacy, and proactive municipal initiatives. With over 80% of Sharjah-based small businesses expected to adopt QR-code systems by 2026, wallet penetration is set to double. The Sharjah Smart City program is integrating digital payment options into public services and utilities, reaching over 500 service touchpoints. Growing smartphone adoption—currently at nearly 95% among residents—and tailored wallet campaigns in multi-lingual formats are amplifying usage. As merchants, commuters, and government platforms embrace seamless digital payments, Sharjah’s mobile wallet ecosystem is poised for significant expansion.

Recent Developments

• In October 2024, Network International signed a Memorandum of Understanding with Ant International to explore expanding digital payment solutions across the Middle East and Africa (MEA). Through this partnership, Network aims to leverage Alipay+ Wallet Tech to enhance its e-wallet offerings. The technology provides a full suite of modular wallet solutions, enabling rapid e-wallet development or the creation of super apps. This collaboration supports broader digital commerce innovation and improved customer experiences across the MEA region.
• In March 2025, Visa partnered with Emirates NBD to launch the Visa Commercial Pay Mobile module, making Emirates NBD the first UAE bank to offer this solution to SMEs and corporate clients. The initiative supports the UAE’s digital payment transformation goals by enhancing payment security, automation, and reconciliation using tokenized virtual credentials. The module enables businesses to issue virtual Visa cards for secure, real-time expense management through mobile wallets such as Apple Pay and Google Pay.
• In May 2024, e& enterprise formed a strategic partnership with Payit, the digital wallet from First Abu Dhabi Bank (FAB), to streamline payment acceptance for UAE businesses. By integrating Payit with e& enterprise’s Payment-as-a-Service (PaaS) layer, the collaboration delivers a secure and simplified digital payment experience. The initiative is expected to accelerate adoption rates, improve conversion, and enhance customer satisfaction across industries by offering seamless, mobile-first payment capabilities tailored to evolving business needs.

Key Market Players

• Klip (Emirates Digital Wallet)      
• e& money (Etisalat Wallet)
• Payit (FAB Payit)
• Careem Pay
• Beam Wallet
• Aani (Al Etihad Payments)
• Ziina
• PayBy
• Noon Pay
• Google Pay 

Report Scope:

In this report, the UAE Mobile Wallet Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• UAE Mobile Wallet Market, By Type:

o   Semi-Closed

o   Open

o   Closed

• UAE Mobile Wallet Market, By Technology:

o   Quick Response (QR) Codes

o   Near Field Communication (NFC)

o   Magnetic Secure Transmission (MST)

o   Others

• UAE Mobile Wallet Market, By Ownership:

o   Telecom Operators

o   Device Manufacturers

o   Tech Companies

o   Banks

• UAE Mobile Wallet Market, By Application:

o   Entertainment & Travel

o   Bill Payments

o   Food & Drinks

o   Groceries

o   Peer-to-Peer Transfer

o   Others

• UAE Mobile Wallet Market, By Region:

o   Abu Dhabi

o   Dubai

o   Sharjah

o   Ajman

o   Umm Al Quwain

o   Ras Al Khaimah

o   Fujairah

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the UAE Mobile Wallet Market.

Available Customizations:

UAE Mobile Wallet Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

UAE Mobile Wallet Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]