MENA: The Fastest-Growing Real-Time Payments Market

Imagine a world where payments happen instantly, seamlessly, and without friction. For the Middle East and North Africa (MENA), this isn’t a distant future—it’s the payment revolution happening now. According to the 2024 Prime Time for Real-Time Report by ACI Worldwide and GlobalData, MENA is the fastest-growing market for real-time payments (RTP) globally. Banking professionals, fintech enthusiasts, and policymakers, buckle up—because this is a story you’ll want to follow.

The Surge in Real-Time and Electronic Payments

Over the past year, the Middle East has seen a meteoric rise in real-time payments, with an impressive 33.6% year-over-year (YoY) growth in 2023, culminating in 855 million RTP transactions. And we’re just getting started. Projections show this number will hit a staggering 3 billion transactions by 2028, growing at a compound annual growth rate (CAGR) of 28.8%.

What’s driving this growth? National real-time payment schemes are being rolled out across the region, with Oman, Kuwait, and Qatar recently joining established RTP pioneers like Saudi Arabia, Bahrain, and the UAE. Today, all six Gulf Cooperation Council (GCC) nations are operating real-time payment programs, unlocking unprecedented opportunities for businesses and consumers alike.

Experts anticipate a significant increase in transaction value, from $230 billion in 2023 to $903 billion by 2028. The results of these advancements? Reduced payment friction, improved cash flow, and faster financial inclusion—the pillars of a truly cashless society.

Path to a Cashless Economy

Real-time payments are at the heart of MENA’s transition towards a cashless economy. Electronic transactions already make up over 50% of the region’s transactions, accounting for 95% of transaction value. RTP alone represented 12% of electronic payments in 2023, a figure predicted to soar to 22% by 2028—outpacing even Europe and North America.

By 2028, cash-based transactions are forecasted to dwindle to a mere 3% of the region’s total transaction value. According to Santhosh Rao, Senior VP of ACI Worldwide MEASA, this transformational shift is fuelled by collaboration between banks and emerging market players. With the rise of fintechs, innovative use cases like QR codes and mobile app payments are rapidly becoming the norm, mirroring the success of India's Unified Payments Interface (UPI).

Bahrain’s Payment Dominance

One of the standout performers in the region is Bahrain, where real-time payments already account for nearly 50% of the country’s total payment volume. Bahrain's success story highlights how the right infrastructure and policies can turn electronic payments into an economic powerhouse.

The Role of Policy and Technology

But this transition isn’t happening organically. Governments across the Middle East are playing a pivotal role, implementing policies that encourage real-time payment adoption. According to insights from The Fintech Times, a robust legal framework combined with proactive technology upgrades has set the stage for RTP to thrive.

However, as ACI Worldwide’s Rao points out, banks need to modernise their legacy silo systems to unlock the full potential of RTP. This is where fintech innovation steps in—merging active collaboration with cutting-edge technology to future-proof payment systems across the region.

Why MENA Banking Professionals Should Care

What does this mean for you as a banking professional, fintech enthusiast, or policymaker? MENA’s RTP boom is not just a trend; it’s a paradigm shift. Financial institutions that fail to adapt risk being left behind.

Here’s why you should pay attention:

1. Operational Efficiency—Real-time payments enable faster cash flows and reduce operational costs.
2. Customer-Centric Innovation—Consumers now expect instant payments. RTP gives you the tools to meet and exceed those expectations.
3. Competitive Edge—With frameworks like those in Bahrain or India, there’s an opportunity to identify global best practices and apply them locally.

What the Global Experts Say

Looking at the global perspective, reports from the Bank for International Settlements (BIS) and McKinsey & Company reinforce why MENA’s RTP market growth is game-changing.

• BIS highlights that real-time payments could unlock billions in GDP growth by reducing the costs of cash handling and increasing transaction speed.
• McKinsey & Company emphasises that emerging markets with forward-thinking policies, like the GCC member states, are poised to leapfrog developed economies in RTP adoption.
• Additionally, a World Bank study notes that such advancements could play a critical role in financial inclusion, particularly in rural areas lacking access to traditional banking infrastructure.

Real-Life Success Stories

It’s not all theory—there are tangible examples of RTP changing the game in MENA. For instance:

• Saudi Arabia’s Sarie RTP platform has reduced payment intervals from several days to mere seconds, helping businesses improve liquidity.
• Kuwait’s new RTP system, launched in 2023, has already reduced the dependency on cash and facilitated seamless peer-to-peer transfers.

These early wins show that the RTP ecosystem is not just viable—it’s thriving.

The Future of Payments in MENA

MENA is the blueprint for what’s possible in modern payment systems. Real-time payments are transforming how the region operates—not just within its borders but on a global scale. As cash-based transactions fade into history, what lies ahead is an ecosystem where innovation takes centre stage, fuelled by fintech and government collaboration.

For banking professionals, fintech enthusiasts, and policymakers, the MENA RTP market offers an unparalleled opportunity to innovate, lead, and grow. The question isn't whether, but how soon your organisation can adapt to this new reality.

Pro Tip: Stay ahead by analysing success stories like India's UPI and Bahrain’s real-time payment framework. The faster you adapt your strategy, the more prepared you’ll be for this digital revolution.