UAE’s digital economy is racing ahead — and FinTech is the engine driving it

By Gloria Methri

The UAE is rapidly rewriting the rules of retail and finance, propelled by its booming FinTech ecosystem and a population hungry for digital innovation. According to Checkout.com’s State of Digital Commerce in MENA 2025 report, the Emirates now stands among the most dynamic and fast-moving digital economies globally — a status underpinned by seismic shifts in consumer behaviour, payments, and technological adoption.

At the heart of this transformation is the nation’s evolving relationship with money. Cash-on-delivery, once the dominant mode of payment across the region, has declined by a staggering 53% since 2020. In its place, seamless, real-time digital transactions are becoming the new norm — a trend exemplified by a 388% year-on-year surge in Account Funding Transactions (AFTs), signalling a robust pivot to instant payouts across salaries, remittances, and peer-to-peer transfers.

This dramatic change is no accident. It reflects a confluence of policy, infrastructure, and innovation. Central banks and regulators have laid down progressive frameworks; FinTech startups and merchants have scaled solutions rapidly; and consumers, armed with mobile phones and rising digital literacy, are enthusiastically embracing the shift.

“The UAE’s residents are increasingly seeking solutions that not only simplify their daily lives but also offer greater convenience, security and speed,” said Remo Giovanni Abbondandolo, General Manager, MENA at Checkout.com. “Fast, secure, and intelligent payments are now foundational to commercial success—not just at the point of transaction, but across the entire customer journey.”

Browsing in Store, Buying Online

Indeed, these digital behaviours are permeating every corner of consumer life. Nearly half of UAE shoppers (44%) now browse for better deals online even while standing in physical stores, turning traditional impulse buys into digital discoveries. Meanwhile, 42% of consumers send money weekly using apps or digital wallets, and over a third (35%) are investing via FinTech platforms—a testament to the mainstreaming of financial innovation.

This digital fluency is also reshaping commerce. Food delivery has emerged as the leading online vertical, accounting for 57% of digital purchases, followed by fashion (48%) and travel (38%). Looking ahead, 62% of UAE consumers say they plan to increase online shopping next year, with particular enthusiasm for travel, food delivery, and even public sector services.

Checkout.com’s data shows that this isn’t just about convenience—it’s about scale. The company’s processing volumes in the UAE have soared 1333% since 2020, including a remarkable 177% year-on-year jump between 2023 and 2024. This is a clear signal that digital commerce is now a structural pillar of the UAE’s economy.

AI: The Secret Weapon For Smarter Shopping

Alongside FinTech, artificial intelligence is making its mark on the Emirati shopping experience. The UAE leads globally in the use of generative chat platforms for shopping assistance, with 46% of consumers having engaged with such tools, while 37% have used visual search AI to locate products. From AI-powered chatbots to virtual try-ons, the fusion of technology and retail is creating smarter, more personalised customer journeys.

Yet, with the growth of digital comes heightened risk. The report reveals a sharp rise in online fraud, with 57% of consumers reporting they have been targeted, up from 35% last year. Additionally, nearly a quarter of shoppers say they’ve abandoned carts over security concerns. Fortunately, the financial ecosystem is responding with cutting-edge fraud prevention, including behavioural biometrics and machine learning-powered anomaly detection.

Trust, once built through familiarity and brand legacy, is increasingly forged through digital signals—peer reviews, online ratings, and seamless user experiences. As Abbondandolo notes, this is the new battleground for loyalty.

For a region long known for its ambition, the UAE’s digital acceleration feels both inevitable and intentional. It’s a market that isn’t just catching up with the world’s fintech leaders—it’s helping set the pace.

As online shopping habits mature, payment rails modernise, and AI becomes embedded in everyday commerce, the UAE’s digital economy is no longer a future goal. It’s already here—and it’s moving fast.