Powering a cashless economy through fintech revolution
In a world rapidly shifting toward digitisation, the UAE has emerged as a regional — and global — trailblazer in the race to build a cashless economy. With an ambitious vision anchored in innovation, the country is redefining the future of finance, commerce, and customer experience. Leading this transformation is Dubai's strategic push to eliminate cash dependency, paving the way for a smarter, faster, and more secure financial ecosystem.
At the heart of this evolution is the Dubai Cashless Strategy, a bold initiative launched by Digital Dubai with the goal of ensuring that 90% of all transactions are digital by 2026. This move aligns with Dubai's wider ambition to become one of the top digital cities in the world. By accelerating digital payments and financial innovation, the strategy is expected to inject more than Dh8 billion ($2.17 billion) into the economy annually. AI and machine learning technologies are being integrated into payment systems to enable real-time fraud detection, personalized financial services, and smarter decision-making across financial touchpoints.
A Progressive Yet Balanced Ecosystem
'The UAE's digital payment ecosystem in 2025 is both highly progressive and uniquely balanced,' says Hennie Du Plessis, Senior Vice President – Financial Institutions, Middle East & Africa at IDEMIA.
Citing findings from IDEMIA Secure Transactions' 2024 global survey on consumer payment trends, he notes that over 50% of UAE residents now regularly opt for cashless transactions. Interestingly, 67% still carry two or more physical cards — an insight that underscores the duality of consumer behaviour in the region. 'This tells us that while the digital infrastructure is accelerating rapidly, consumer trust in physical cards remains deeply rooted,' Du Plessis explains. 'The dual preference reflects a mature ecosystem that seamlessly integrates both digital innovation and physical reliability.'
This coexistence of digital and traditional payment methods signals a nuanced and sophisticated market, where consumers are empowered with choice and confidence, and businesses are equipped to meet evolving expectations.
At the heart of this transformation lies robust government policy. The UAE's leadership has played an instrumental role in driving the nation towards a cashless economy through strategic frameworks and future-focused initiatives.
'Government policy has been a driving force,' affirms Du Plessis. 'Programmes like the UAE Central Bank's Financial Infrastructure Transformation (FIT) strategy and broader smart government initiatives are setting a foundation for secure, real-time digital transactions.'
The FIT programme, in particular, is designed to enhance interoperability, boost financial inclusion, and create an environment conducive to fintech innovation. These efforts ensure that regulatory frameworks evolve in tandem with technological advancements, allowing both consumers and financial institutions to adopt digital solutions with confidence.
Key Milestones
According to Du Plessis, the nation has already achieved several significant milestones that reflect its digital maturity. 'Key milestones include the rise in contactless payments, mainstream adoption of digital wallets, and the launch of innovative smart cards with state-of-the-art designs — like metal and illuminated cards — and functionalities such as biometric payment options,' he says.
Biometric technology, in particular, is emerging as a key enabler of secure, frictionless payments. ' Biometric payments readiness is especially high, with 98% of UAE consumers open to using at least one biometric method to pay, and 69% expressing specific interest in fingerprint-based transactions,' Du Plessis adds.
Looking ahead, the next wave of innovation will focus on enhancing payment accessibility and experience. Du Plessis outlines the future roadmap: 'The next steps lie in expanding wearable payment technologies and blockchain-based platforms, while ensuring inclusive access across all age and income segments.'
As the market matures, specific innovations within the digital payment space are gaining strong traction. QR code payments and Buy Now, Pay Later (BNPL) services are witnessing rapid adoption, especially in dynamic sectors like e-commerce, food & beverage, and urban mobility. 'The UAE consumers are increasingly opting for frictionless checkouts and contactless retail experiences,' Du Plessis observes. 'This is being enabled through wallet integration, tokenisation, and one-click transactions offered by solutions like Tap To Pay.'
An Ecosystem Built on Collaboration
Unlike fragmented global markets where banks and fintechs often operate in silos, the UAE has created an environment of strategic cooperation. According to Du Plessis, this synergy is driving the nation's fintech revolution. 'In contrast to more fragmented markets, the UAE's ecosystem is uniquely collaborative,' says Du Plessis. 'Fintechs here benefit from regulatory sandboxes, investor access, and a supportive public sector.'
This collaborative environment is compelling traditional banks to modernise and innovate at pace. 'Traditional banks are responding by launching digital-first services, while neobanks and tech players are pushing the boundaries of seamless UX,' he adds. The result is a dynamic, healthy competition where innovation is accelerated — but not at the expense of consumer trust.
Security as the Cornerstone of Innovation
As digital payments become the norm, security has emerged as the foundation upon which user trust is built. In the UAE, where 84% of residents identify online fraud as a primary concern, financial institutions are doubling down on safeguarding every transaction. 'Security is front and center in every payment conversation,' Du Plessis notes. 'Technologies such as chip-level encryption, tokenization, and biometric authentication are now widely adopted to safeguard transactions end to end.'
These advanced security layers not only protect against present-day cyber threats but also ensure that user-facing innovation — like seamless mobile payments or biometric card transactions — is meaningful and reliable.
The industry's next major frontier in security lies in anticipating and mitigating the threat of quantum computing. As the potential for cryptographic vulnerabilities grows, financial institutions must adopt next-generation security standards to stay ahead. 'With quantum computing advancing, the threat of cryptographic vulnerabilities is no longer theoretical,' Du Plessis warns. 'This is driving a global shift toward post-quantum cryptographic standards and the deployment of next-generation secure chipsets embedded in cards, devices, and payment terminals.'
These emerging technologies are designed to resist future quantum attacks and preserve the integrity of financial transactions well into the future. The UAE, with its progressive policies and appetite for innovation, is in a strong position to lead this transformation. 'We expect post-quantum-ready encryption to become a defining benchmark for compliance, trust, and operational resilience — not only for financial institutions, but across the broader payments and digital identity ecosystem. The future of secure payments will depend on the industry's ability to stay ahead of emerging threats by investing in resilient technologies that ensure transactions remain safe, trusted, and future-ready,' Du Plessis adds.
While the UAE is clearly embracing digital payments at an unprecedented scale, the future may not completely eliminate cash. Instead, it will shift to a smart-payment-first economy where cash is relegated to niche or legacy use cases.
'The UAE is clearly on a trajectory toward a predominantly cashless economy, but not necessarily a cash-free one,' says Du Plessis. 'Cash might be reserved for specific use cases, while most transactions will be driven by digital channels — powered by smart cards, wearables, mobile wallets, and embedded payment technologies.'
Interestingly, despite the rise of digital wallets and contactless solutions, physical payment cards are expected to maintain — and even increase their relevance.
'Physical payment cards will still play a central role, particularly among premium segments where tangibility and brand experience continue to matter,' Du Plessis adds.
Shaping the Future of Financial Intelligence
The role of AI and machine learning in banking and payments will evolve from operational support to strategic enablers of hyper-personalisation and proactive security.
According to Du Plessis, these technologies will 'drive hyper-personalized banking, fraud detection, and predictive risk analysis.' Consumers can expect AI to not only offer tailored financial products based on real-time behaviors and preferences but also act as a frontline defense against increasingly sophisticated fraud threats.
'Blockchain will streamline everything from real-time cross-border payments to digital identity verification,' Du Plessis explains. Tokenised assets are gaining traction as consumers and businesses look for faster, more transparent ways to manage and transfer value. IDEMIA, for instance, is leading the charge with secure hardware wallets like B.CCHAIN, which empower users to manage crypto assets with enhanced security and user control.
As the UAE looks ahead, the convergence of AI, blockchain, and advanced payment infrastructure is setting the stage for a resilient financial ecosystem built on intelligence, speed, and trust. 'These technologies will define a new era of secure, intelligent financial infrastructure in the UAE,' Du Plessis affirms.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hi Dubai
5 days ago
- Hi Dubai
Dubai Finance Partners with NEOPAY to Accelerate Citywide Cashless Transformation
Dubai Finance (DOF) has signed a strategic agreement with NEOPAY, one of the UAE's leading payment solutions providers, to fast-track the city's transition to a cashless economy under the Dubai Cashless Strategy launched in October 2024. The Memorandum of Understanding, signed by DOF Executive Director Ahmad Ali Meftah and NEOPAY CEO Vibhor Mundhada, aims to strengthen financial digitalisation and innovation across government and private sectors. The initiative is built around three core pillars — Governance, Innovation, and Society — and aligns with the city's broader ambition to lead globally in digital finance. As part of the agreement, NEOPAY will leverage its advanced fintech capabilities to support the rollout of AI-powered solutions that enhance accessibility, improve transaction efficiency, and provide seamless digital payment options for residents and businesses. 'This partnership with NEOPAY marks a significant milestone in advancing the Dubai Cashless Strategy,' said Meftah. 'We are fostering a more inclusive and technologically advanced financial ecosystem that benefits the entire society.' Mundhada echoed the commitment, stating, 'This collaboration reinforces our role in delivering intelligent, secure payment experiences and supporting Dubai's wider financial innovation goals.' The partnership also supports fintech innovation accelerators aimed at developing user-friendly, high-performance digital payment systems that further entrench Dubai's leadership in the global fintech landscape. News Source: Dubai Media Office
Khaleej Times
02-06-2025
- Khaleej Times
Dubai: KHDA allows private schools to raise fees for next academic year
Dubai's Knowledge and Human Development Authority (KHDA) approved, on Friday, an Education Cost Index (ECI) of 2.35 per cent for for-profit private schools in the emirate for academic year 2025-2026. The decision is based on the annual review of audited financial statements submitted by Dubai private schools, in collaboration with the Digital Dubai Authority. KHDA, Dubai's education regulator, noted 'the ECI takes into account the operational costs of running a school to offer a high quality of education, including staff wages, support services, and rental expenses.' In Dubai, for-profit schools can increase their fees based on their individual school grade as per the results of the Dubai School Inspection Bureau (DSIB), and the ECI which is calculated on a regular basis. Any fee increase can only be implemented for a particular academic year and cannot be carried forward to the upcoming academic years. The ECI is based on the annual audited financial statements of private schools in Dubai, which outline the operational cost of running a private school to offer a high-quality education. The ECI used for the current school year (2024-2025) was 2.6 per cent. Transparent methodology 'The ECI for fee adjustments is based on a robust and transparent methodology that supports schools in Dubai to manage their resources while maintaining a high quality of education in line with the needs of students and parents,' noted Shamma Al Mansouri, director of licensing and education services at KHDA. 'This sustainable approach to regulating school fees reflects Dubai Government's commitment to transparency and efficiency in the education sector. It ensures that Dubai remains a leading destination for high quality education in line with the goals of the Education 33 Strategy,' she added. KHDA said they have informed all private schools in Dubai about the requirements for submitting fee adjustment requests for the next academic year. 'Eligible for-profit schools may apply for an increase up to, but not exceeding, the approved ECI. Private schools that have been operating in Dubai for less than three years are not eligible for a fee adjustment. All applications will be reviewed by KHDA to ensure they meet the criteria for fee increases,' KHDA underscored. Dubai currently has 227 private schools serving 387,441 students from 185 nationalities. The sector recorded an unprecedented 12 per cent increase in student enrollment in the 2023-24 academic year. According to KHDA, enrollment grew by a further 6 per cent during the 2024-25 academic year. Fifteen new private schools have opened in Dubai in the last two academic years, and KHDA is currently reviewing more than 20 applications for new schools set to open in the next two years. The opening of new schools and steady enrolment growth in Dubai's private education sector support the objectives of the Education Strategy 33, which aims to open at least 100 new private schools by 2033.
Hi Dubai
29-05-2025
- Hi Dubai
How to Legally Expand Your Business in Dubai Without Changing Your License
Dubai's economy is on an impressive upward track, growing by 3.1% in the first nine months of 2024 and reaching AED 339.4 billion, according to Digital Dubai. What's driving this momentum? Key sectors like wholesale and retail trade have grown by 2.9%, transportation and storage by 5.3%, and financial and insurance activities by 4.5%. As these industries expand, so does Dubai's potential as a global business hub. But what's the bigger vision? The emirate's ambitions are clearly outlined in the Dubai Economic Agenda D33, which aims to double the economy by 2033. This is supported by major reforms, most notably the decision to allow 100% foreign ownership of onshore companies since June 1, 2021. These changes are not just policy shifts, they're open invitations for global businesses to grow in Dubai. But with such an opportunity comes the need for caution. Are you operating with the right licenses? Failing to comply with licensing regulations can be costly, with penalties reaching up to AED 50,000—or worse, complete business closure. So how can businesses expand in Dubai without changing their core license or running into compliance issues? In this article, we explore legal ways to grow your business in Dubai without altering your original license structure, helping you scale safely and strategically . Understanding Your Existing License with DET The Dubai Department of Economy and Tourism (DET), formerly DED, is the primary authority for business registration and licensing in Mainland Dubai. DET oversees corporate strategy, business registration, and compliance. Key License Types: Commercial License: For buying, selling, importing/exporting. For buying, selling, importing/exporting. Professional License: For services like accounting, legal, and marketing. For services like accounting, legal, and marketing. Industrial License: For manufacturing, processing, and assembling. Benefits of a DET License: Enhanced Credibility: Official government endorsement builds trust. Official government endorsement builds trust. Market Access: Direct access to Dubai's market, including government tenders. Direct access to Dubai's market, including government tenders. Flexible Visa Policies: Typically one visa per 100 square feet of office space. Typically one visa per of office space. 100% Foreign Ownership: Permitted in most mainland industries. Permitted in most mainland industries. No Minimum Capital: Generally, no minimum capital is required for DED-licensed mainland companies. Generally, no minimum capital is required for DED-licensed mainland companies. Tax Advantages: While historically offering significant benefits, corporate tax was introduced in June 2023, applying a 9% rate on net profits exceeding AED 375,000. Diversifying Activities Under Your Existing Mainland License The UAE government allows businesses to add new activities to an existing trade license, provided all legal requirements are met. Engaging in unlisted activities can result in fines from AED 5,000 to AED 50,000. Process Highlights: Initial Approval: Obtain approval from DET for proposed new activities. Application Submission: Submit the BR1 form for license amendment. NOCs & Legalities: Secure No Objection Certificates (NOCs) from relevant authorities if needed, and complete legal formalities (e.g., LLC agreement addendum). Final Steps: Submit all documents, pay fees (around AED 3,000 for mainland, AED 2,000 for free zones), and receive your updated license. Benefits: Unlocking new revenue streams, staying competitive, enhancing credibility, and optimizing existing resources. Free Zone to Mainland Expansion Under New Regulations Executive Council Resolution No. 11 of 2025, issued on March 3, 2025, allows Dubai free zone businesses to operate directly in the mainland. This is a core part of Dubai's D33 economic agenda. Pathways for Free Zone Entities: Onshore Dubai Branch (physical presence required): Valid for one year, renewable. Onshore Dubai Branch (HQ in free zone, no physical presence): Valid for one year, renewable, with an annual fee of AED 10,000. Temporary Permits for Specific Activities: Valid for up to six months, with a fee of AED 5,000 annually. The DET, in coordination with licensing authorities, is expected to issue a comprehensive list of permissible activities by September 20, 2025.A significant benefit is the ability to use the existing free zone-registered workforce for mainland operations, leading to cost savings. Leveraging Digital Expansion with E-commerce and Virtual Licenses Dubai's e-commerce market is projected to reach USD 8 billion by 2025. An e-commerce license is essential for legal online operations. Adding E-commerce Activities: Businesses with existing mainland commercial licenses can add e-commerce activities following the standard amendment process. Types of E-commerce Licenses: E-Trader License: For UAE/GCC nationals, home-based businesses, social media sales (no physical shop/visa). For UAE/GCC nationals, home-based businesses, social media sales (no physical shop/visa). Portal License: For online platforms connecting buyers and sellers. For online platforms connecting buyers and sellers. Virtual Company License: For non-resident entrepreneurs, allowing remote operation without a physical office is considered cost-effective. Cost: A Dubai e-commerce license in 2025 typically ranges from AED 5,750 to AED 15,000, depending on jurisdiction, office needs, and visa allocations. Establishing a Branch or Representative Office (An Extension, Not a Change) Foreign companies can establish a direct presence in Dubai through branch or representative offices without altering their parent company's license. Branch Office: Functions as an extension of a foreign parent company, authorized to conduct commercial activities. Requires a physical office and a Local Service Agent (LSA). The Ministry of Economy (MOE) mandates a capital deposit of AED 50,000 . Functions as an extension of a foreign parent company, authorized to conduct commercial activities. Requires a physical office and a Local Service Agent (LSA). The Ministry of Economy (MOE) mandates a capital deposit of . Representative Office: Established solely for promotional activities, not direct sales. Requires a UAE national as a local agent. No minimum share capital is required, but a refundable MOE deposit of AED 50,000 is typically required. Franchising: A Double-Edged Sword for Business Expansion The MENA franchising industry is growing, with Dubai's market projected to reach USD 44 billion by 2026, expanding by 12% annually. The current market size exceeds AED 30 billion annually, with growth rates averaging 12-15% year over year. Franchise businesses often achieve 25-30% higher success rates and 40% faster profitability compared to independent startups. Why Franchising Can Be a Risky Bet: Unsuitability: A business may not be viable for replication if its core elements aren't distinctive or strong enough to attract franchisees. A business may not be viable for replication if its core elements aren't distinctive or strong enough to attract franchisees. Lack of IP Protection: Unregistered trademarks can hinder franchising. Unregistered trademarks can hinder franchising. Complex Operations: If the business system is too complicated or difficult to reproduce consistently, it's not suitable. If the business system is too complicated or difficult to reproduce consistently, it's not suitable. Unprofitable Model: Franchises are often less profitable than the original business due to startup costs like franchise fees and supplies. Franchises are often less profitable than the original business due to startup costs like franchise fees and supplies. Weak Brand Recognition: A lack of strong brand recognition makes it harder to attract franchisees and customers. Common Pitfalls for Franchisees: Inadequate Market Research: Not understanding local demand, competition, or ideal location. Not understanding local demand, competition, or ideal location. Underestimating Costs: Beyond initial fees, ongoing expenses like royalty fees (typically 5-8% of gross revenue) and marketing contributions (another 2-3% ) can be substantial. Beyond initial fees, ongoing expenses like royalty fees (typically of gross revenue) and marketing contributions (another ) can be substantial. Wrong Franchise Model: Selecting a concept that lacks local demand or fails to adapt to cultural preferences. Selecting a concept that lacks local demand or fails to adapt to cultural preferences. Neglecting Training & Support: Insufficient training and ongoing support from the franchisor can lead to operational inefficiencies. Insufficient training and ongoing support from the franchisor can lead to operational inefficiencies. Franchisor Instability: Financial difficulties of the franchisor can severely impact franchisees. Financial difficulties of the franchisor can severely impact franchisees. Market Saturation: Over-saturation or unclear territorial rights can lead to internal competition. The legal framework for franchising in the UAE is governed by the Commercial Agencies Law (Federal Law No. 18 of 1981), the Commercial Companies Law, and contract law. Commercial agents (franchisees) must register with the Ministry of Economy. Franchisors are legally obligated to provide a comprehensive disclosure document to potential franchisees. Dubai's dynamic regulatory environment supports business expansion without requiring a complete license change. Strategies include diversifying activities under existing mainland licenses, leveraging the new free zone to a mainland expansion framework (Executive Council Resolution No. 11 of 2025), embracing digital growth via e-commerce and virtual licenses, and establishing branch or representative offices. While franchising offers growth potential, it demands careful viability assessment and adherence to legal obligations. Each pathway offers distinct advantages, requiring meticulous planning and compliance for sustained success in this global business hub. (Main Sources: Also read: Can Foreigners Really Own 100% of a Business in the UAE? Here's the Truth Explore the evolution of foreign ownership restrictions in the UAE, from their historical roots to the groundbreaking 2020 reforms and the sectors that still require local ownership. Small Business Licence Cost In Dubai We'll explore the cost of a small business licence in Dubai, and guide you through the steps required to launch your business successfully. 6 Simple Steps To Set Up A Business In A UAE Free Zone Establishing a business in a UAE Free Zone is straightforward and can be completed in six simple steps, as outlined by the Ministry of Economy. The Benefits of Dubai's Free Zones for Entrepreneurs This article explores the many advantages that Dubai's free zones offer, making them an attractive proposition for entrepreneurs worldwide.
