Digital wallets made up around 20 per cent of total online spending in the Middle East in 2023, according to new research.

A report by ResearchAndMarkets.com suggests that while card payments still dominate the region, alternative payments like those made from digital wallets are on the rise.

It said that the shift towards alternative payments is evident in the increased use of real-time payments.

In Saudi Arabia, for example, the research company said the number of real-time payment transactions is expected to more than triple between 2022 and 2027, showing a double-digit compound annual growth rate (GAGR).

GAGR is the annualised average rate of revenue growth between two years.

The research says that in the UAE, real-time payment transactions are projected to nearly quadruple during the same period, with an even higher double-digit CAGR.

There is a relatively even distribution between card and alternative payment methods when it comes to shopping in Saudi Arabia, while in Israel cards play a significant role in online payments, followed by e-wallets.

Digital payment adoption is highest in countries like the UAE, Israel, and Saudi Arabia, where between seven and nine out of 10 adults used digital payments in 2022, according to the study.

However, Jordan shows a lower double-digit adoption rate, demonstrating that the popularity of digital payments is not spread evenly across the region.

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