UAE acquiring payment market shows strong growth, according to Bain & Company
Despite competitive pressures, the UAE payment landscape continues its rapid evolution,
fuelled by e-commerce growth, SME adoption, and regulatory initiatives
Dubai – April 2025 – The UAE acquiring payment market has witnessed significant growth, driven by rapid digital transformation, increasing e-commerce penetration, government initiatives supporting a cashless economy, and rising demand for diversified digital payment options, according to recent analysis.
In 2024, the UAE merchant acquiring market reached a total payment volume (TPV) of approximately USD 150 billion, representing a compound annual growth rate (CAGR) of 13-14% since 2020. Market revenues totalled USD 470 million, reflecting a slightly higher CAGR of 15%, primarily due to increased SME and VAS penetration, while still facing price pressures within a highly competitive environment.
Providing insight into these trends, Dimitri de Kéchilava, Associate Partner at Bain & Company Middle East, explained: 'The UAE payment ecosystem is rapidly transitioning toward digital solutions, driven by supportive government initiatives, increasing e-commerce activity, and evolving consumer behaviours. For acquiring businesses to sustain and enhance growth, it will be crucial to invest strategically in innovation and develop value-added services that differentiate them in this dynamic marketplace.'
Key UAE market trends contributing to payment growth include:
Shift towards cashless transactions: Growing adoption of cards, digital wallets, and Buy Now, Pay Later (BNPL) solutions.
Government initiatives: Regulatory frameworks promoting reduced reliance on cash transactions.
Booming e-commerce activity: online transactions projected to grow ~15% annually through 2028.
Increased SME penetration: payment revenue growth from small and medium enterprises expected at approximately 16% annually (versus ~10% for the enterprise segment)
Value-added services (VAS): SMEs increasingly demanding enhanced offerings like data analytics, dashboards, and dynamic currency conversion, creating additional revenue streams for payment acquirers.
The competitive landscape remains dynamic, with existing payment providers expanding capabilities, and new market entrants continuously emerging. Both established players and newcomers are actively pursuing licensing and strategic partnerships to increase their presence.
Despite strong market growth, several challenges persist, including price pressures reducing revenue margins, slower-than-expected SME adoption (currently accounting for only 25–30% of transaction volumes), and low penetration rates of integrated software vendors (ISVs) currently at around 2%.
Addressing these challenges, Dimitri de Kéchilava added: 'SME, VAS and ISV adoption rates present opportunities for future growth. Recent developments and strategic partnerships within the payment sector indicate substantial potential. Market players that proactively integrate innovative solutions and technologies will be best positioned for future success.'
Market Outlook
The UAE acquiring payment market is projected to maintain its upward trajectory over the next five years, driven by digital transformation, ongoing government support, and rising consumer preference for digital payments. Providers will increasingly focus on innovation, value-added services, and customer-centric solutions to succeed in this evolving competitive environment.
Editor's Note:
To arrange an interview or for further questions, please contact:
Christine Abi Assi – christine@daydreamer.agency
About Bain & Company
Bain & Company is a global consultancy that helps the world's most ambitious change makers define the future.
Across 65 cities in 40 countries, we work alongside our clients as one team with a shared ambition to achieve extraordinary results, outperform the competition, and redefine industries. We complement our tailored, integrated expertise with a vibrant ecosystem of digital innovators to deliver better, faster, and more enduring outcomes. Our 10-year commitment to invest more than $1 billion in pro bono services brings our talent, expertise, and insight to organizations tackling today's urgent challenges in education, racial equity, social justice, economic development, and the environment. We earned a platinum rating from EcoVadis, the leading platform for environmental, social, and ethical performance ratings for global supply chains, putting us in the top 1% of all companies. Since our founding in 1973, we have measured our success by the success of our clients, and we proudly maintain the highest level of client advocacy in the industry.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Post
42 minutes ago
- Arabian Post
MediLink Therapeutics Taps Major Banks for Hong Kong Float
MediLink Therapeutics Ltd. is preparing to launch an initial public offering in Hong Kong, having secured China International Capital Corp., JPMorgan Chase & Co. and Morgan Stanley as its lead advisers, according to people with knowledge of the matter. The move comes as the clinical-stage biotech firm seeks to capitalise on growing investor interest in advanced tumour-targeting therapies and consolidate its platform of antibody‑drug conjugates. Founded in 2020 and headquartered in Suzhou with R&D operations in Shanghai and Boston, MediLink has developed a proprietary ADC technology known as TMALIN®. The platform facilitates precise delivery of cytotoxic agents to tumour cells, with the intention of widening therapeutic windows for solid tumour treatments. Its pipeline includes programs that have advanced to clinical stages in both China and the United States, supported by a Series B financing round of approximately USD 70 million in 2022. MediLink's strategic engagement of three underwriters reflects heightened confidence in anchor investors and broader syndication. China International Capital Corp. brings deep roots in Chinese capital markets and extensive IPO experience in the biotech sector. JPMorgan and Morgan Stanley add global banking heft and access to international investors. ADVERTISEMENT CICC itself is emerging as a top-tier sponsor for Hong Kong listings. It led or co-led 19 IPOs for Chinese corporates last year, raising USD 3.84 billion, positioning it as a dominant force amid market revival. The engagement of internationally renowned banks alongside CICC is likely aimed at boosting MediLink's valuation and widening investor interest both locally and abroad. While IPO details remain confidential, analysts suggest MediLink could seek a valuation in the mid‑to‑high hundreds of millions of dollars. That would reflect both the advanced stage of its pipeline and prevailing market multiples for ADC developers. Comparable biotech flotations in Hong Kong and the U.S. have reflected growing appetite for oncology-focused platforms. Alongside listing ambitions, MediLink continues to advance its clinical and licensing goals. In March it unveiled preclinical data at the American Association for Cancer Research annual meeting; earlier in the year it received FDA clearance for its IND application for YL217, its lead candidate. YL201, another programme, received Breakthrough Therapy Designation in January for treatment of recurrent/metastatic nasopharyngeal carcinoma. The company has also pursued strategic licensing agreements with global pharmaceutical firms to expand development and commercialisation capabilities. A licensing deal under discussion ahead of the IPO is believed aimed at enhancing distribution reach while reinforcing MediLink's balance sheet. The IPO effort is part of a broader resurgence in biotech listings in Hong Kong, where authorities have eased regulations to attract innovation-driven offerings. CICC and other banks have ramped up support for ADC and gene therapy companies, signalling a turning point after a lull in listings. ADVERTISEMENT MediLink's choice of banks aligns with a wider trend: CICC has co-sponsored blockbuster floats including the forthcoming mega‑IPO of CATL, while banks like Goldman Sachs and Morgan Stanley have also participated. In this context, MediLink is positioning itself to tap both deep domestic networks and international capital. Stakeholder sentiment appears optimistic. MediLink's management team, comprised of co‑founders Tony Xue and Jiaqiang Cai alongside C‑suite leaders experienced in drug development and financial strategy, has overseen steady progress in its ADC pipeline and established global partnerships. Jason Li's appointment as CFO in 2023 reportedly strengthened the company's capital market readiness. Market observers highlight challenges ahead. ADC development remains capital-intensive, clinical risks high, and competition fierce among domestic and international peers. Success will hinge on late‑stage data and licensing traction. At the same time, geopolitical tensions and volatility in Hong Kong equity markets may affect investor sentiment. MediLink must also navigate post‑IPO obligations, including regulatory reporting and corporate governance under Hong Kong's Main Board requirements. Mitigating execution risk will be critical, underscoring the role of its chosen bankers in underwriting diligence and market support. Analysts describe the listing as a pivotal moment: it offers the backing to fund Phase II/III efforts while elevating MediLink's corporate profile. For banks, it reinforces Hong Kong's appeal as a biotech capital market when compared with established centres like Nasdaq. With its IPO process underway, MediLink now awaits market timing and regulatory clearances before formally filing a prospectus. The company is expected to continue advancing clinical data, strengthening licensing ties, and preparing investor materials aligned with regulatory requirements.
Arabian Post
42 minutes ago
- Arabian Post
UK Fintech OpenTrade Secures £5.5M to Boost Stablecoin Yield Services
OpenTrade, a London-based fintech infrastructure provider, has closed a £5.5 million funding round, led by Notion Capital and Mercury Fund, raising its total capital to around £8.5 million since inception. The investment is earmarked to scale its build-out of real-world asset-backed stablecoin yield services across high-inflation markets in Latin America and Europe. OpenTrade embeds 'yield-as-a-service' into fintech apps, allowing users to earn interest on USD and EUR stablecoins—rates that significantly outperform traditional banking options. Fintech clients such as Criptan in Spain and Littio in Colombia now offer yields up to 9%, compared with local bank APRs of under 0.5%. Co-founders Dave Sutter, Jeff Handler, and Tom Niermann have close links to USDC's Centre consortium and hold decades of digital assets experience. They launched OpenTrade in early 2024 to address demand from emerging markets, where inflation erodes savings and dollar-denominated banking returns are negligible. The platform has since managed approximately $47 million in assets and processed nearly $200 million in transaction volume, growing at an average of 20% month-over-month. ADVERTISEMENT The round also saw participation from a16z crypto, AlbionVC, and CMCC Global, reflecting continued investor confidence. OpenTrade intends to direct the funds towards enhancing its technological capabilities, supporting growth in client-facing applications, and broadening its product suite to include a wider range of real-world asset-backed instruments. The company's timing aligns with a broader surge in stablecoin infrastructure. Globally, stablecoin transaction volumes now exceed $20 trillion annually—outpacing conventional payment systems such as Visa, Mastercard, and PayPal. For fintech firms in emerging economies, embedding stablecoin yields into everyday platforms is reshaping perceptions of crypto, transforming digital currencies from purely transactional tools into accessible savings vehicles. Argentina and Colombia exemplify this shift. Dollar accounts are rare, and where available, yields are negligible. In Colombia, dollar-denominated APRs are below 0.4%, while Littio users, through OpenTrade, attract up to 6%. Spain's Criptan offers up to 9% in EUR stablecoin returns—generating user traction by outperforming traditional savings products. Despite the rapid uptake of stablecoins, mainstream users in many regions face roadblocks: regulatory frameworks for safe yield generation have lagged behind adoption. OpenTrade bridges this gap by offering compliant real-world asset backing and embedded yield capabilities, supporting regulatory alignment while extending market reach. This funding arrives amid a regulatory pivot in Europe. The Financial Conduct Authority plans to unveil discussion papers on stablecoin issuance and custody in Q4 2025, aligning with the EU's Markets in Crypto-Assets framework. OpenTrade's growth strategy demonstrates fintechs' ambition to navigate both innovation and regulation in stablecoin infrastructure. Fintech founders view embedded stablecoin yield as essential for financial inclusion. Sutter has emphasized that stablecoins have become crypto's 'killer app' and that over a third of Latin American consumers have used them for purchases. OpenTrade is positioned as an enabler: the platform supports deposits, withdrawals, and yield generation directly within existing fintech interfaces. Investor sentiment adds context. Notion Capital's Itxaso del Palacio remarked that the $240 billion stablecoin market needs robust infrastructure. Mercury Fund's Samantha Lewis described OpenTrade as 'core financial infrastructure for the next generation of fintech'. These endorsements highlight confidence in both OpenTrade's leadership and market relevance. Looking ahead, OpenTrade aims to expand its reach over the next 12–18 months. Key areas include launching new yield products, incorporating diverse asset classes, and enhancing the user experience for fintech clients. The vision is to become the go-to partner for compliant stablecoin yield solutions, competing across developed and emerging economies where rising inflation, currency volatility, and limited access to traditional deposits persist.
Arabian Post
an hour ago
- Arabian Post
VinUni sets its sights on world's top 100 universities – Recruiting 500 leading scholars worldwide
VinUni fosters a multicultural, globally oriented learning environment. HANOI, VIETNAM – Media OutReach Newswire – 9 June 2025 – VinUniversity (VinUni) has officially unveiled its second-phase development strategy, with the ambitious vision of becoming one of the world's top 100 universities. At the heart of this initiative is the 'VinUni 500' program, which aims to attract 500 outstanding scholars from around the globe. The strategy is backed by a USD 372 million investment from Vingroup to scale up academic capabilities and cultivate a world-class research ecosystem in Vietnam. VinUni's phase 2 strategy is built on two core pillars: enhancing academic and research infrastructure to international standards and strengthening academic capacity to meet global benchmarks. The University will focus on five strategic research domains: (1) Brain, Artificial Intelligence and Robotics;(2) Health Sciences; (3) Environmental Intelligence; (4) Intelligent Computing and Data Science; and (5) Policy Development and Sustainable Societies. In terms of infrastructure, Vingroup has pledged up to USD 372 million in funding for this new phase. Of this, approximately USD 60 million will be allocated to expanding the campus, including new auditoriums, dormitories, sports facilities, and cutting-edge laboratories. Student enrollment will increase from 1,500 to 5,000, nearly half of whom will be postgraduate students—laying the foundation for VinUni's evolving research-intensive environment. A highlight of this expansion is the establishment of the VinUni Industry, Innovation and Research Complex on campus— an integrated research center that will house advanced technology laboratories, incubation for university-industry partnership, and a 1,000-seat international conference center. The facility is expected to regularly host over 600 scientists. ADVERTISEMENT VinUni's cutting-edge laboratories are purpose-built to enhance both education and scientific research. At this complex, R&D professionals from industry, including subsidiaries of Vingroup —such as VinFast, Vinmec, VinBigData, VinRobotics, and VinMotion—will collaborate with VinUni faculty members and students in co-innovation studios. Together, they will develop high-impact, application-oriented research with strong commercialization potential, fueled by an entrepreneurial mindset. In parallel, VinUni will strengthen international academic partnerships with leading institutions such as Cornell University (USA), the University of Pennsylvania (USA), and Nanyang Technological University (Singapore), as well as with leading Vietnamese universities. These partnerships will facilitate the formation of interdisciplinary RISE (Research, Innovation, Sustainability, and Excellence) research clusters, aimed at creating high-impact scholarly publications and tackling pressing issues at both the local and global levels. To strengthen academic capacity, the institution is launching the 'VinUni 500' program to recruit 500 top-tier scholars and researchers, including: 10 high-caliber academic leaders, 200 talented research-focused faculties, 200 outstanding early-career researchers, and 100 affiliated faculties. To attract these scholars, VinUni will offer globally competitive remuneration and support packages. For instance, all faculty will receive a personal development grant of up to approximately USD 6,000 annually, and outstanding researchers may access seed funding of up to approximately USD 230,000. Besides forging research and teaching excellence, 'VinUni 500' serves as a bridge connecting the Vietnamese academics with international scholars as well as world-class scientists from the VinFuture Prize network—fostering impactful, cross-border research collaborations. Dr. Le Mai Lan, President of The University Council, VinUniversity, shared: 'VinUni is not just a university, but a vision to nurture a new generation of talent for the future. We believe that by building internal strength through talent-driven development, leveraging strong commitment from our founding ecosystem, and joining forces with local and global partners, VinUni will make meaningful contributions to the national development strategy in this era of Vietnam's rise.' Founded with the mission to build a world-class university in Vietnam, VinUni has, in just five years, emerged as a symbol of entrepreneurial spirit, agility, academic excellence, and global connectivity. It is the youngest university worldwide to achieve a QS 5-Star overall rating, affirming its accelerating progress in the global higher education landscape. More information on 'VinUni 500': Hashtag: #VinUniversity The issuer is solely responsible for the content of this announcement.
