The Middle East emerged as the fastest-growing real-time payment market for the second year in a row in 2023, according to the latest 2024 Prime Time for Real-Time report by ACI Worldwide and GlobalData. The region’s real-time payment market saw a 33 percent surge in 2023 with 855 million transactions. The report expects the market to grow by 28.8 percent to $3 billion by 2028.
The report’s findings reveal that markets are moving toward maturity after they reached a record-breaking high of 266.2 billion transactions globally, an annual increase of 42.4 percent. Across the world, real-time payments have played a major role in the growth of economies, driving financial inclusion and better transparency. Moreover, they are faster, cheaper, more accessible, and convenient. Real-time payments also reduce costs and improve liquidity for businesses and help banks achieve greater efficiency.
Middle East markets
In 2023, Oman, Kuwait, and Qatar joined Saudi Arabia, Bahrain and the UAE in launching national real-time payment schemes. With all six GCC countries operating real-time payment programs, the report expects transaction value in the Middle East to surge from $230 billion in 2023 to $903 billion by 2028.
Bahrain tops Middle East adoption
Bahrain stands out as one of the most developed real-time payments markets in the Middle East. The country’s real-time payments make up nearly 50 percent of the total payment volume and the majority of all electronic payments. Moreover, the report expects real-time payment services to reach 77 percent of all transactions in the market by 2028.
Oman and UAE adoption remains slow
In 2023, real-time payments in Oman accounted for only 2.2 percent of transactions in the market. Meanwhile, paper instruments accounted for 58.2 percent of transactions. ACI Worldwide and GlobalData expect Oman’s real-time payments market to grow by 22.7 percent from 2023 to 2028, which is above the global average, but below all of its regional peers.
In the UAE, the introduction of the instant payment system Immediate Payment Instruction (IPI) has not gained significant traction. In October 2023, the central bank launched Aani, a new instant payments platform that aims to increase the usage of real-time payments in the country. Currently, real-time payments account for only 1.5 percent of total payment transaction volume. However, the report expects this share to increase to 3.6 percent by 2028.
Saudi Arabia volumes to rise 24.6 percent
In Saudi Arabia, the volume of real-time payment transactions reached 430 million, and the outlook for real-time payments looks promising. Forecasts expect volumes to rise 24.6 percent from 2023 to 2028. Hence, the government’s initiatives to modernize the country’s payment infrastructure and accelerate the shift toward cashless payments will promote the adoption of real-time payments.
In Saudi Arabia, the decline in cash usage is mainly due to the utilization of other forms of electronic payments more than real-time payments. The report expects the share of other electronic payments in the Kingdom to increase from 58.1 percent in 2023 to 67 percent in 2028.
Read: Oman’s e-commerce market value reaches $2.2 billion in 2023
Shift to cashless economy
The surge in real-time and electronic payments emphasizes the Middle East’s shift towards a cashless economy. In 2023, electronic transactions accounted for 50 percent of all transactions and 95 percent of transaction value in the region. Besides, real-time payments made up 12 percent of the region’s electronic transactions last year. The report expects this figure to reach 22 percent by 2028, outpacing Europe and North America. According to the report, by 2028, cash transactions will decline to 3 percent of all transaction value in the region.
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