DUBAI’S CASHLESS STRATEGY
VISION OF INNOVATION DRIVING UAE’S CASHLESS TRANSFORMATION
The initiative reflects Dubai’s vision to become one of the world’s top digital cities, driving an estimated Dh8b annually in economic benefits
The UAE is leading the global transition to a digital cashless society, showcasing its commitment to innovation, economic resilience, and technology transformation. At the heart of this transformation is Dubai’s ambitious Cashless Strategy, which aims to shift 90 per cent of all transactions to digital platforms by year 2026. This initiative, spearheaded by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, reflects Dubai’s vision to become one of the world’s top digital cities, driving an estimated Dh8 billion annually in economic benefits. Central to this vision is the adoption of secure, seamless, and inclusive digital payment systems that cater to both government and private sectors. Leveraging advanced technologies like artificial intelligence and machine learning, these systems enhance speed, security, and consumer trust, ensuring a robust foundation for UAE’s evolving digital economy. Central Bank of the UAE (CBUAE) plays a pivotal role in this transformation through initiatives like its Financial Infrastructure Transformation (FIT) Programme. This comprehensive initiative includes the introduction of a Card Domestic Scheme, an Instant Payments
By laying the groundwork for integrated digital payments, our CBUAE is setting the stage for a future where financial transactions are faster, safer, and more accessible to all segments of the society.
Jamal Saleh
Platform, and a Central Bank Digital Currency (CBDC) for both domestic and cross-border use. These measures are designed to promote financial inclusion, encourage innovation, and create a cashless ecosystem that is sustainable, safe, and resilient. By laying the groundwork for integrat-
The rise of contactless payment methods like Tap Pay and Go is revolutionising the way we shop, making transactions quicker, safer, and more convenient in an increasingly cashless world
Anam Khan
he world is swiftly heading towards a cashless future, where physical money is increasingly becoming obsolete in favour of digital transactions. A key part of this revolution is the rise of contactless payment technologies like Tap Pay and Go, which are transforming the way consumers and businesses conduct financial transactions. These innovations are not only changing our day-to-day shopping habits but are also making a significant impact on how we think about money, security, and the future of commerce.
The Rise of Tap Pay and Go Tap Pay and Go, commonly referred to as “contactless payments,” allow consumers to make purchases simply by tapping their card, smartphone, or wearable device on a point-of-sale (POS) terminal. Unlike traditional methods, which required swiping or inserting a card and entering a PIN or signature, contactless payments offer a faster, more convenient alternative that significantly
reduces transaction times. This technology leverages Near Field Communication (NFC) or Radio Frequency Identification (RFID) to enable secure communication between the payment device and the terminal.
The adoption of contactless payment methods has skyrocketed in recent years, driven by technological advancements and shifting consumer preferences. According to recent reports, contactless payments now account for a substantial percentage of global transaction volumes, particularly in countries like the UAE, UK, Canada, and Australia, where tap-and-go transactions are now the norm. In the UK, for example, over half of card transactions are now contactless, with figures continuing to rise. In other regions, the adoption rate is also growing rapidly, fuelled by the COVID-19 pandemic, which increased demand for contactless and touchfree payment options as consumers and businesses sought ways to reduce physical contact.
Convenience and Speed:
The Appeal of Tap Pay
One of the primary reasons behind the success of Tap Pay is its unparalleled convenience. Consumers no longer need to fumble with cash, count out change, or worry about inserting a card into a reader. With just a tap of a card or phone, payments are processed within seconds, saving valuable time for both customers and merchants.
For example, many public transport systems around the world, including in London with the Oyster card system, now allow commuters to simply tap
ed digital payments, our CBUAE is setting the stage for a future where financial transactions are faster, safer, and more accessible to all segments of the society.
The benefits of a cashless economy extend beyond technological advancements. For consumers, it offers greater convenience, enhanced security, and access to cutting-edge financial tools. Businesses gain increased operational efficiency, scalability, and opportunities for economic diversification. For the nation as a whole, it cements UAE’s position as a global leader in digital finance, providing a model for other nations seeking to modernise their financial systems.
The rapid growth of digital payments in the UAE is a testament to the country’s leadership in this space. Digital payment transactions increased by 53 per cent in 2023 to reach Dh157.8 billion and are expected to grow to Dh484.4 billion by the year 2028. Moreover, over 95 per cent of transactions at leading UAE banks are now digital, and more than half of new bank accounts are opened through digital channels. These achievements highlight UAE’s ability to harness technology to redefine the financial landscape.
The recently announced Dubai’s Cashless Strategy exemplifies how ambition and collaboration can reshape economies. It is not just a financial milestone but a societal evolution that redefines how individuals, businesses, and governments interact within a digital framework. By embracing this vision, Dubai and the UAE are setting a global standard for innovation and economic growth.
This remarkable progress is underpinned by a collaborative approach that brings together regulators, banks, and FinTech companies. We, UAE Banks Federation (UBF), have been instrumental in aligning the banking sector with our nation’s ambitious goals. Through close collaboration with regulatory authorities,
their payment method on entry and exit, eliminating the need for paper tickets or fare cards. In retail, customers can skip long queues by quickly paying with their contactless-enabled cards or devices, allowing businesses to process more transactions per minute and improving overall customer satisfaction.
Additionally, smartphones and smartwatches have become essential tools for facilitating cashless transactions. Mobile wallets such as Apple Pay, Google Pay, and Samsung Pay allow consumers to link their bank accounts, credit, and debit cards to their devices, providing even greater flexibility and ease of use. Consumers can tap to pay anywhere NFC-enabled terminals are available, often without the need to carry a physical card at all.
Security and Privacy: The Backbone of Cashless Transactions
While the convenience of tapand-go payments is clear, concerns about security and privacy remain at the forefront of the cashless revolution.
Tap Pay transactions rely on encryption technologies that ensure sensitive data, such as card details, is never exposed during a transaction. Additionally, contactless payments typically use tokenisation, which replaces the actual payment information with a unique, one-time-use token for each transaction. This ensures that even if a fraudster intercepts the communication, they would not be able to retrieve any meaningful information to make future purchases.
The Future of Cash
The future of payments looks undeniably digital. As technology continues to evolve and consumer behaviour shifts, systems like Tap Pay and Go are poised to play an even more central role in shaping how we spend, save, and manage money. As we move towards a cashless future, the benefits of convenience, speed, and security are clear. Ultimately, the future of payments will be defined by the integration of digital systems that make financial transactions easier, safer, and more inclusive for everyone.
member banks, and FinTech innovators, UBF fosters a forward-looking financial ecosystem that champions sustainability, operational efficiency, and customercentric innovation.
Our efforts focus on adopting global best practices and leveraging cuttingedge tools to empower individuals and businesses with smarter, faster, and more secure financial services. UBF initiatives complement the objectives of Dubai Cashless Strategy, ensuring that the banking sector remains a key enabler of UAE’s digital transformation journey.
Fraud Prevention remains a priority while digital transactions rise. UBF continues to advocate that customer awareness is the first line of defense, with some of its members leveraging technologies like AI and behavioural analytics to detect and prevent fraudulent activities in real time. Dubai Cashless Strategy is a testa-
ment to the power of ambition and collaboration. It not only redefines the financial landscape of the UAE, but also sets a global benchmark for innovation and economic growth.
As we advance towards a fully cashless society, UAE Banks Federation remains steadfast in its commitment to fostering a secure and resilient financial ecosystem. By championing education, knowledgesharing, innovation, and collaboration, we are shaping a future that is not only cashless but also limitless in its potential — building a financial system that benefits individuals, businesses, and the economy as a whole. Together, we are redefining what is possible in the world of finance and cementing the place of the UAE as a global leader in digital excellence. Jamal Saleh is Director-General of the UAE Banks Federation.
Magnati simplifies contactless payments with the launch of tap to pay on iPhone
iPhone, and the transaction is securely completed via NFC technology. This solution ensures that both the merchant and customer data remain secure as it uses the iPhone’s built-in security features. Apple does not store card or transaction information on the device or its servers. Nishit Doshi, Managing Director and Head of Products, Partnerships and Data at Magnati commented, “The introduction of Tap to Pay on iPhone helps enhance the customer experience with contactless payments. For UAE consumers, contactless inperson payments have become second nature, with over 95 per cent of transactions now conducted via this method. With Tap to Pay on iPhone, we are equipping businesses in the UAE with an efficient solution that enhances sales while providing customers with greater choice and convenience.” Setting up Tap to Pay on iPhone is straightforward. New merchants with an iPhone XS or later
The introduction of Tap to Pay on iPhone helps enhance the customer experience with contactless payments. For UAE consumers, contactless in-person payments have become second nature, with over 95 per cent of transactions now conducted via this method.
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Jamal Saleh
CASHLESS FUTURE: DUBAI’S CASHLESS STRATEGY
ACCELERATING THE SHIFT TOWARDS A CASHLESS SOCIETY
With over 40 years of trusted presence, Visa is helping Dubai lead the way in payment innovation, supporting the UAE’s move towards a cashless future with cutting edge solutions and strategic investments
Latha Krishnan
The UAE is making significant strides toward a cashless society, with more consumers embracing digital commerce and businesses entering the digital economy. Dubai has emerged as a leader in payment innovation, with over 90 per cent of in-store digital transactions now contactless — on par with major financial hubs like Singapore, London, and New York. Visa International has played an important role in the country’s digital transformation.
Visa has been a trusted partner in Dubai for over 40 years, playing a pivotal role in shaping the region’s payment landscape. Over the years, the company has seen a significant shift towards digital payments, and the feedback from residents has been encouragingly positive. People appreciate the convenience, security, and speed that Visa’s solutions bring to their everyday transactions. Whether it’s using contactless payments for daily purchases or sending money globally through digital apps, residents are embracing these innovations, while Visa continues to enhance their digital payment experience.
“Visa is fully on board with the Dubai government’s digitise life in Dubai and Dubai Cashless Strategy initiatives. These efforts align perfectly with our commitment to advancing digital payments and fostering a cashless economy. By prioritising secure, efficient, and accessible digital solutions, these initiatives will enhance financial inclusion, drive economic growth, and lay the groundwork for a digitally advanced future in Dubai,” says Salima Gutieva, Visa’s VP and Country Manager for UAE. She considers these initiatives as not only feasible but also well on their way to success. They are on the sure path to success because Dubai has built a strong foundation with its rapid economic growth, especially driven by the travel and retail as well as the real estate sectors. The combination of a stable political environment and uncomplicated entry visa policies for remote workers is attracting a continuous influx of new residents.
In addition, Dubai’s digital infrastructure — with high internet penetration and a government that is heavily invested in financial inclusion — the city is positioned as a leader in payment innovation. The widespread adoption of new payment technologies and its ambition to be a global hub for financial and payment technology are very much in motion, thereby ensuring continued growth. More people, now trust digital payments. The UAE’s card payments market is expected to top $200 billion by 2028. Also, the country’s e-Commerce market, which is growing rapidly, is expected to reach over Dh48 billion by 2028. The UAE is already leading in financial inclusion, with 85 per cent of residents aged 15 and above using formal financial services. Even for outbound remittances from the UAE, around 60 per cent of residents now prefer using digital apps -over physical, traditional methods — for remittances.
“All these factors make it clear that the push towards a cashless society is well on
Visa is fully on board with the Dubai government’s Digitise Life in Dubai and Dubai Cashless Strategy initiatives. These efforts align perfectly with our commitment to advancing digital payments and fostering a cashless economy. By prioritizing secure, efficient, and accessible digital solutions, these initiatives will enhance financial inclusion, drive economic growth, and lay the groundwork for a digitally advanced future in Dubai.
Salima Gutieva
track. Visa has made significant investments, including our CEMEA regional headquarters and Innovation Centre right here in Dubai. Our digital acceptance and payment solutions like Click to Pay, Visa Direct Alias, and Tap to Phone are helping businesses and consumers make the shift to a fully digital economy. We are also collaborating closely with the government on smart city projects, integrating secure digital payments into infrastructure like the Ajman Transport Authority,” explains Gutieva.
“Over Visa’s 60-year history, we have been the driving force enabling commerce in every corner of the world, uplifting everyone, everywhere by being the
best way to pay and be paid, giving people access to money whenever they want, however, they want, and wherever they want. Financial access is fundamental to everything we do because we link billions of buyers and sellers across hundreds of countries. At Visa, we are excited to be a part of this transformation.”
In the UAE, Visa is also empowering fintech startups through programs like Visa Fintech Fast Track and Visa Everywhere Initiative, which are designed to bring innovative solutions to the market. The company is also supporting SMEs, especially women entrepreneurs, through initiatives such as the She’s Next program, which helps women-led businesses thrive in the digital world. One of Visa’s latest products is the Visa Flexible Credential, now available in the UAE in partnership with Liv, the first digital bank in the Mena region to debut the solution. This product allows consumers to seamlessly pay from different funding sources — debit or credit — using a single card. It is a game changer, especially for UAE residents who are increasingly spending in multiple currencies. With Visa data showing a 30 per cent year-on-year growth in outbound payments from the UAE, the Flexible Credential helps manage this by automatically selecting the appropriate account for each currency, whether shopping online or in-store. Users can also move funds between local and foreign currency accounts via the mobile app for added convenience. The product supports six popular currencies: the US dollar, British pound, euro, Canadian dollar, and Australian dollar. It’s available to both new and existing Liv customers, offering a
One of Visa’s latest products is the Visa Flexible Credential, now available in the UAE in partnership with Liv, the first digital bank in the Mena region to debut the solution. This product allows consumers to seamlessly pay from different funding sources — debit or credit — using a single card. It is a game changer, especially for UAE residents who are increasingly spending in multiple currencies.
simpler, more transparent way to handle multi-currency spending.
“We have also launched Visa Instalment Solutions (VIS) in response to consumer demand for flexible payment options. A recent survey showed that 48 per cent of UAE consumers find instalments helpful for managing high prices, while 37 per cent use them for unexpected expenses. This solution enables customers to make purchases and pay in instalments, helping them manage their finances more easily while encouraging responsible usage,” adds Gutieva. Responsible usage of financial products includes knowing that transactions are risk-free and secure since cybercrime is rampant in today’s digital world. Security and innovation are core to Visa’s mission. Over the past five years, Visa has invested
More people, now trust digital payments. The UAE’s card payments market is expected to top $200 billion by 2028. Also, the country’s e-commerce market, which is growing rapidly, is expected to reach over Dh48 billion by 2028. The UAE is already leading in financial inclusion, with 85 per cent of residents aged 15 and above using formal financial services. Even for outbound remittances from the UAE, around 60 per cent of residents now prefer using digital apps -over physical, traditional methods — for remittances.
more than $10 billion in cybersecurity globally because trust is the foundation of any payment system.
“We also leverage AI and machine learning to analyse transactions in realtime, further enhancing fraud prevention and security. Visa offers the Visa Acceptance Platform (CyberSource). This platform uses tokenisation technology to protect sensitive card information by replacing it with unique identification symbols, ensuring that essential data is retained without compromising security. This technology has generated approximately $40 billion in global e-commerce revenue and saved $650 million in fraud last year,” informs Gutieva.
The commitment of Visa to security extends beyond technology to even consumer education. A 2023 Visa survey in the UAE revealed that 9 in 10 consumers overlook warning signs of online fraud. Gutieva explains further: “We’ve been working closely with Dubai Police to launch the Stay Secure campaign, aimed at boosting consumer confidence in safe digital payments.
Additionally, Visa has signed an MOU with Dubai Police’s Operation Centre for Economic Crimes (OCEC), combining our expertise in digital payment security with their enforcement capabilities to combat economic crimes. Visa will continue to lead the way in secure, user-centric payment solutions, empowering businesses and residents of Dubai with the technology they need for a safe, seamless digital experience.”
Visa already provides all of the key elements outlined in Dubai’s Cashless Strategy. The AI-driven solutions of Visa focus on real-time fraud detection, ensuring secure transactions. The Click to Pay solution enhances the e-commerce experience, while Visa Direct enables seamless money remittance. Visa also works with travel partners like Emirates Skywards to promote digital payments for travel and support contactless payments on public transport. Visa is dedicated to driving these innovations and will continue to support Dubai’s vision for a cashless future.
“Through strategic investments and collaboration with Dubai’s government, financial institutions, merchants and fintechs, Visa is committed to accelerating the shift towards a cashless society. We aim to build trust and inclusion, ensuring every transaction is secure, simple, and efficient. As Dubai leads the way in digital payments, Visa will continue to be at the forefront, shaping the future of finance for businesses and consumers alike,” affirms Gutieva.
Salima Gutieva, Visa’s VP and Country Manager for UAE.
Visa has been a trusted partner in Dubai for over 40 years, playing a pivotal role in shaping the region’s payment landscape.