Consumer spending through digital wallets will reach more than $10 trillion in 2025, up from $5.5tn last year, according to a new report.
The growth of more than 80 per cent over the five-year period will be fuelled by the increased adoption of digital payments in the wake of the Covid-19 pandemic, UK-based Juniper Research said.
It predicted that contactless and e-commerce payments will account for 50 per cent of total digital wallet spending in next five years, from just under 36 per cent last year.
The rapid growth in digital wallet availability, coupled with rising adoption rates, means merchants face difficult choices. Selecting the right wallet providers and the integration costs for using multiple wallets are proving to be a challenge, it added.
“Merchants must base their payment strategies around wallet acceptance in order to support a digitally-engaged addressable market … but must also judge the right wallets to target, or they will be lumbered with increased costs and limited benefits,” the report’s co-author, Alexandria Sadler, said.
The wallets are becoming increasingly capable of both "contactless and remote payments", she added.
A digital wallet stores users’ credit and/or debit card information and links it to a payment gateway to allow purchases at a point of sale. Like a credit card, these wallets will only work at merchants who accept them as a payment method.
Google was the first major company to launch a mobile wallet in 2011, with its Wallet service. Now there are a range of others, such as Samsung Pay, PayPal and Apple Pay. Many telecoms companies and banks have their own mobile wallet offerings.
The increased use of contactless mobile payments, prompted by concerns around cash during the Covid-19 pandemic, has led to greater use of digital wallets across the payments ecosystem, the Juniper report found.
Contactless adoption will continue to rise, with over 34 per cent of mobile handsets expected to use contactless payments in 2025, up from 11 per cent in 2020, it added.
“This growth means integrating contactless-enabled wallets within checkout processes will be critical to meeting changing user expectations.”
The UAE is among the countries leading this adoption.
Two-thirds of people expect the country to become fully cashless by 2030, according to a September poll by Standard Chartered. A report by US-based TechSci Research also found the UAE mobile wallet market is expected to grow at a compound annual rate of 24 per cent to $2.3 billion by 2022.
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Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
COMPANY PROFILE
Name: Cofe
Year started: 2018
Based: UAE
Employees: 80-100
Amount raised: $13m
Investors: KISP ventures, Cedar Mundi, Towell Holding International, Takamul Capital, Dividend Gate Capital, Nizar AlNusif Sons Holding, Arab Investment Company and Al Imtiaz Investment Group
Global state-owned investor ranking by size
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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Killing of Qassem Suleimani
THE LOWDOWN
Photograph
Rating: 4/5
Produced by: Poetic License Motion Pictures; RSVP Movies
Director: Ritesh Batra
Cast: Nawazuddin Siddiqui, Sanya Malhotra, Farrukh Jaffar, Deepak Chauhan, Vijay Raaz
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
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Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
The specs
Engine: 2.0-litre 4-cyl, 48V hybrid
Transmission: eight-speed automatic
Power: 325bhp
Torque: 450Nm
Price: Dh289,000
Summer special
Manikarnika: The Queen of Jhansi
Director: Kangana Ranaut, Krish Jagarlamudi
Producer: Zee Studios, Kamal Jain
Cast: Kangana Ranaut, Ankita Lokhande, Danny Denzongpa, Atul Kulkarni
Rating: 2.5/5
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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Dunki
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More coverage from the Future Forum
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The most expensive investment mistake you will ever make
When is the best time to start saving in a pension? The answer is simple – at the earliest possible moment. The first pound, euro, dollar or dirham you invest is the most valuable, as it has so much longer to grow in value. If you start in your twenties, it could be invested for 40 years or more, which means you have decades for compound interest to work its magic.
“You get growth upon growth upon growth, followed by more growth. The earlier you start the process, the more it will all roll up,” says Chris Davies, chartered financial planner at The Fry Group in Dubai.
This table shows how much you would have in your pension at age 65, depending on when you start and how much you pay in (it assumes your investments grow 7 per cent a year after charges and you have no other savings).
Age
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$250 a month
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$500 a month
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$1,000 a month
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25
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$640,829
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$1,281,657
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$2,563,315
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35
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$303,219
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$606,439
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$1,212,877
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45
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$131,596
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$263,191
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$526,382
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55
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$44,351
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$88,702
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$177,403
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MANDOOB
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FIXTURES
All kick-off times UAE ( 4 GMT)
Friday
Sevilla v Levante (midnight)
Saturday
Athletic Bilbao v Real Sociedad (7.15pm)
Eibar v Valencia (9.30pm)
Atletico Madrid v Alaves (11.45pm)
Sunday
Girona v Getafe (3pm)
Celta Vigo v Villarreal (7.15pm)
Las Palmas v Espanyol (9.30pm)
Barcelona v Deportivo la Coruna (11.45pm)
Monday
Malaga v Real Betis (midnight)
AL%20BOOM
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In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
'Skin'
Dir: Guy Nattiv
Starring: Jamie Bell, Danielle McDonald, Bill Camp, Vera Farmiga
Rating: 3.5/5 stars
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UAE currency: the story behind the money in your pockets