What are the common local payment systems used in the UAE and Saudi Arabia?

The UAE and Saudi Arabia, as economically advanced countries in the Middle East, have well-established local payment systems and are also rapidly advancing digital payment innovations. Below are the main local payment methods commonly used in both countries:

I. Common Payment Systems in the United Arab Emirates (UAE)

  1. Benefit

    • The UAE's instant bank transfer system, which supports real-time interbank transfers, is widely used for e-commerce and offline payments.
    • Payment needs to be authorised via bank app or internet banking.

  2. eDirham

    • The Government has launched an e-wallet system that can be used for payment of government fees, public transport and other public services.

  3. Mashreq Pay / ENBD Pay

    • Local banks (e.g. Mashreq Bank, Emirates NBD) have launched mobile wallet apps that support swipe payments and P2P transfers.

  4. Apple Pay & Samsung Pay (localisation integration)

    • Extensive co-operation with local banks, NFC payment can be done via mobile phone after binding bank card.

  5. Other card networks::

    • KNET(Kuwait cross-border coverage),Meeza(Egyptian cards organised but available for some scenes).

II. Payment systems commonly used in Saudi Arabia

  1. SADAD Payment System

    • A national bill payment platform led by the Central Bank of Saudi Arabia, covering payment for public services such as utilities and school fees.

  2. mada (formerly Saudi Payments Network)

    • The local Saudi debit card network, almost all POS and online merchants support mada card payments. International cards (Visa/Mastercard) may be restricted in some scenarios.

  3. STC Pay / Alinma Pay / SPAN (SARIE)

    • STC Pay: Telecom giant STC has over 8 million e-wallet users under its umbrella;

      SARIE: The Central Bank's real-time clearing system facilitates instant transfers;

      Alinma Bankand other banks also offer their own mobile payment apps.

  4. Apple Pay & Google Pay (Bound mada card):
    After 2021 has been opened to mada card compatibility popularity is higher;

5.emerging trend:: BNPL services such as Tamara (similar to Afterpay) and Tabby are growing rapidly locally, especially among the younger population.

Tri-border/regional generic programmes.

  • UAE and Saudi Arabia have close fintech co-operation e.g..
    GCC-wide interoperability possible but need to confirm specific channels.
    -International remittance channels: Exchange houses like UAE Exchange still have a share.

Enterprises are advised to prioritise the above mainstream methods and pay attention to compliance requirements (e.g. Saudi Arabia's SAMA licence requirements) when accessing them.

IV Key features and trends in the payments ecosystem in the UAE and Saudi Arabia

1. Government promotion of cashlessness (Cashless Initiatives)

  • UAE: The Government of Dubai has launched the "Smart Dubai" strategy, which aims to achieve a cashless society by 2030.
  • abbr. for Saudi Arabia: The "Vision 2030" programme promotes e-payment, with the proportion of non-cash transactions now exceeding 60%.

2. Explosive growth of BNPL (buy now pay later)

  • Saudi Arabia and the UAE are the most active markets for BNPL in the Middle East, with key players including:
    • Tamara(Largest BNPL platform in Saudi Arabia)
    • Tabby(Headquartered in the UAE and covering multiple Gulf countries)
    • Spotii (Integrated into Tabby after acquisition)
  • Applicable Scenarios: E-commerce, luxury goods, electronics instalments.

3. Regional cooperation in cross-border payments (GCC connectivity)

  • The Gulf States are moving forward with interconnecting payment systems, for example:
    • AFAQ(GCC Unified Bank Card Scheme)
    • SARIE (Saudi Arabia's instant clearing system) with UAE'sIPS (Instant Payment System) in docking test
  • affect (usually adversely): Seamless intra-regional transfers similar to SEPA may be possible in the future.

V. Enterprise access recommendations

If your business needs to enter these two markets, focus on the following:

(1) Local Compliance Requirements

nations Key institutions caveat
abbr. for Saudi Arabia SAMA (central bank), SFDA (e-commerce licence) PSP licence required; mada card mandatory priority
UAE CBUAE (Central Bank) Some wallets require separate qualification

(2) Technical adaptation points

  • ✅Must support:
    1. mada card (Saudi)/Benefit (UAE)
    2. STC Pay/Tamara and other high frequency applications
    3. AR/EN bilingual interface + local customer service
  • ⚠️ Note the religious and cultural elements of Saudi Arabia:
    Prohibition of interest-related services(affecting the design of instalment products)

VI. Future directions of innovation that deserve attention
1.Digital Currency Pilot:
UAE's Digital Dirham (CBDC), Saudi Arabia's Aber project with BIS;
2.Super App Integration for Payments:
For example, Careem (online car + wallet), Noon (e-commerce + finance);
3.Islamic fintech(Halal Fintech).
Sharia-compliant investment/insurance products are growing rapidly;

Details of the solution can be explored further if needed for a specific type of scenario!