Shoppers are increasingly paying with methods other than cards, with significant volumes now flowing through alternative channels such as telco wallets, according to retail industry executives.
Paul Carey, executive vice-president for cards, payments and fintech at Al-Futtaim, said the payments landscape had “shifted massively” over the past five years. Cards remain the predominant way to pay, but other options are growing quickly.
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The trend comes as Al-Futtaim announced a strategic partnership with Juspay, a global payments technology company, to act as its payment orchestration partner across all its brands and markets.
Carey said payments were once largely a choice between cash and cards. Today, buy now, pay later (BNPL) is everywhere, he said, while open finance is enabling direct bank-to-bank payments.
He added that central banks are also pushing to modernise payments in the UAE and other markets. The UAE has launched Jaywan, its local debit card, while instant payment options are emerging.
Al-Futtaim has partnered with Indian company Juspay as its payment orchestration partner across its brands and markets.
Online spend
Between 30 and 50 per cent of spending across Al-Futtaim’s businesses is now online, Carey said, adding that the figure varies by business.
Crypto and stablecoins are also beginning to appear, he added.
Nakul Kothari, head of Asia-Pacific and the Middle East at Juspay, said the growth of cross-border commerce in the region was adding to the complexity for merchants.
New research suggests the shift away from traditional payment rails will accelerate in the region.
A study by Nium and Celent found that Middle East banks expect stablecoins to account for an average of 10.4 per cent of outgoing cross-border business payment volumes by 2035, up from 1.6 per cent in 2025.
Tokenised deposits are expected to rise from 1.2 per cent to 6.2 per cent, while central bank digital currencies are expected to increase from 0.6 per cent to 4.1 per cent. Together, these new forms of money could represent 20.7 per cent of payment volumes by 2035, compared with 3.4 per cent in 2025.
Banks expect Swift’s share to fall from 77.2 per cent to 55 per cent.
The findings are based on responses from 40 banks and 40 businesses across the UAE, Saudi Arabia, Kuwait and Qatar. Adoption is still developing: 53 per cent of banks say they are struggling to make the business case, while half believe the technology is not yet mature enough.
Source: Khaleej Times