UAE SMEs lead the digital payment wave, 92% now cash-free

By Gloria Methri

Small and medium enterprises (SMEs) in the UAE are embracing digital payments at an unprecedented rate, with 92% now accepting digital transactions, according to the latest Mastercard SME Confidence Index. This marks a significant shift towards a cashless economy driven by strong government support, a thriving digital ecosystem, and improved financial access.

Digital Payments Driving SME Growth

The rapid adoption of digital payments is reshaping SME operations, with 83% prioritising payment enhancements to boost efficiency and customer experience. A growing emphasis on financial inclusion and sustainability initiatives complements this focus on digital transactions.

Moreover, 97% of SMEs recognise the importance of better data and analytics in strengthening their business strategies, demonstrating an industry-wide move towards technology-enabled decision-making.

Dimitrios Dosis, President of Eastern Europe, Middle East and Africa at Mastercard, stated, “SMEs are the backbone of economies, driving innovation, employment, and resilience. As digital transformation accelerates, businesses are unlocking new opportunities through digital payments and financial inclusion.”

With 70% of SMEs in the UAE actively seeking credit, access to financing remains a key enabler for expansion. Mastercard is partnering with financial institutions and FinTech firms like Geidea to enhance credit accessibility through digital payment data and financial insights, helping SMEs build stronger financial profiles and secure funding.

J.K. Khalil, Division President, East Arabia at Mastercard, noted, “As the UAE advances its vision for a thriving digital economy, SMEs play a crucial role in driving innovation and growth. Mastercard is committed to empowering them with cutting-edge payment solutions, real-time insights, and strategic partnerships.”

The study highlights that over 80% of UAE SMEs believe that private sector initiatives and partnerships have the greatest potential to impact their business positively. In 2024, Mastercard partnered with Abu Dhabi Global Market (ADGM) to launch an SME-focused business education programme, providing entrepreneurs with insights into digital payments and financial management.

With digital transformation and strategic collaborations shaping the future, the UAE’s SMEs are well-positioned to thrive in an increasingly digital and interconnected economy.