Fintech company Tap Payments obtains a license from the UAE Central Bank, broadening its influence in the region's biggest digital finance market.
The United Arab Emirates (UAE) is set to witness a significant boost in its digital payments sector, following Tap Payments' recent acquisition of a license from the Central Bank of the UAE to provide commercial payment services. This regulatory milestone marks a pivotal step in Tap Payments' regional expansion strategy, positioning the company to further scale its offerings.
The digital payments landscape in the UAE is undergoing a rapid evolution, characterized by strong growth and the increasing adoption of innovative payment methods. One such market is the Buy Now Pay Later (BNPL) sector, projected to grow at a compound annual growth rate (CAGR) of 11.2%, reaching a value of $4.82 billion by 2030. By 2025, the BNPL market is estimated at $2.84 billion, growing annually by 15.6%.
The broader digital payment adoption is supported by the increasing use of contactless payments, mobile wallets, and domestic card schemes. For instance, the Central Bank of the UAE launched the "Jaywan" card scheme in 2025, integrating debit, credit, and prepaid card products with partnerships involving Mastercard, Visa, and UnionPay. This move aims to enhance accessibility and usage across online, ATM, and point-of-sale (POS) channels.
Public transport systems are also adopting contactless payments, facilitating payments through bank cards, digital wallets (Apple Pay, Google Pay), and wearables. Despite a 68% cash payment share at POS in 2024, credit cards hold a significant 35% share, reflecting ongoing digital payment uptake. Regulatory frameworks are advancing to sustain market growth and improve financial transparency; e-commerce regulations introduced in 2024 promote secure digital payments and consumer protections.
The UAE's fintech investment has surged, with $2.2 billion raised in H1 2025, positioning the country second globally after the US for fintech funding. This surge in investment is expected to further fuel innovation and expansion in the payments sector.
Tap Payments' entry into the UAE market is a testament to the country's critical role in digital financial services. Ali Abulhasan, Co-Founder and CEO of Tap Payments, has called the new licence a "pivotal achievement." Tap Payments' actions contribute to the UAE's rapidly evolving fintech ecosystem, which currently boasts 184 specialized companies.
The total value of digital transactions in the UAE is projected to reach US$80.37 billion by 2025, and is expected to exceed US$134.84 billion by 2029. The UAE's position as the largest fintech and payments hub in the region is further solidified by this growth.
In summary, the digital payments market in the UAE is poised for significant growth in the coming years. With Tap Payments' entry into the market, the UAE is set to transform traditional payment systems with technologically advanced, regulatory-backed solutions, further cementing its status as a leading digital financial services hub.
[1] Source: ResearchAndMarkets.com [2] Source: Payments Cards & Mobile [3] Source: Khaleej Times [4] Source: Gulf Business
Finance plays a significant role in the UAE's transformation, with digital payments set to reach US$134.84 billion by 2029, as shown in research by ResearchAndMarkets.com. The growth is fueled by strategic acquisitions like Tap Payments securing a license to provide commercial payment services, a move that boosts the country's fintech ecosystem and further positions the UAE as a leading digital financial services hub.
