The GCC’s Payment Revolution: Cash, Cards, and What Comes Next

The Gulf is rewriting the rules of payments. Once a cash-first region, for a while, credit cards were the upgrade - now this region is leading the global charge into the digital-first payment future. 

The Old Guard: Physical Credit Cards and Cash

For decades, physical credit cards were the focus of consumer spending in the GCC. Convenient, ubiquitous, and for a long time, the only game in town. And cash? It’s still clinging to life in pockets across the region, but make no mistake: its obituary is already being written.

Numbers don’t lie. The GCC’s financial cards and payments market is cruising at a CAGR of 11.2% through 2030. That’s steady growth, but here’s the thing—it’s happening alongside an explosion in digital payments. (BlueWeave Consulting)

Digital Domination: The Rise of Payment Platforms

Digital payments in the GCC are growing at a blistering pace, with transaction volumes projected to hit $457 billion by 2029. That’s an 16.2% CAGR, driven by e-commerce, smartphone ubiquity, and a consumer base that’s increasingly allergic to cash. (Statista)

Let’s be clear: this isn’t just about convenience; it’s about ecosystem control. Digital wallets like STC Pay and apps like Careem Pay aren’t just providing a service—they’re building closed-loop systems that tie consumers into broader platforms. If cash was king and cards were the heirs, digital wallets are the disruptors rewriting the succession plan.

Saudi Arabia: Ground Zero for the Cashless Revolution

Saudi Arabia is the poster child for this transformation. The government isn’t just nudging people away from cash—it’s bulldozing the old systems to make way for digital. The Financial Sector Development Program has set a bold goal: 70% non-cash transactions by 2025. Spoiler alert: they already reached these levels in 2023. (SAMA)

Here’s the kicker: Saudi’s digital payments market alone is projected to grow at 8.06% annually, hitting $87.14 billion by 2028. The proliferation of mobile wallets and BNPL services (see Tabby and Tamara) is reshaping how Saudis spend, save, and shop. Cash is rapidly becoming an artifact, and even credit cards are starting to look like VHS tapes in the age of streaming. (Statista)

BNPL: The Trojan Horse of Spending

Buy Now, Pay Later (BNPL) is making a splash across the GCC, especially in Saudi Arabia and the UAE. It’s a classic fintech play: reduce friction, offer flexibility, and watch adoption skyrocket. It also falls in line well culturally with Shariah law. For younger consumers, it’s a no-brainer—why deal with interest-heavy credit cards when you can split payments?

Tabby, Tamara, and other BNPL leaders are reshaping consumer habits. They’re also chipping away at the credit card market, one installment at a time.

What’s Next: Opportunities and Landmines

The shift to digital isn’t all sunshine and stock options. With the rise of digital transactions, fraud will follow, and cybersecurity is now a line item on every company’s budget. There’s also that looming risk of market overload. (How many payment apps do we really need?)

For traditional players—banks, credit card companies—the playbook is clear: innovate or die. Contactless cards, deeper integrations with wallets, partnerships with innovators, and loyalty programs tied to digital ecosystems are the minimum viable strategy.

The GCC’s Payment Playbook

Here’s the bottom line: the GCC isn’t just adopting the future—it’s building it. Digital payments are the new star, and the pace of adoption is setting a global benchmark. Credit cards still have a seat at the table, but the power dynamics are shifting fast.

If you’re a business in the GCC and you’re not already all-in on digital payments, you’re behind. And if you’re an outsider looking in, take note. The GCC isn’t just a market—it’s an example of how to pivot an entire economy from legacy systems to digital dominance.

Want to know more about GCC payment competitors? Let’s chat on LinkedIn.

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-Ralph