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Qatar’s payments industry is set for notable growth, with total revenues projected to reach $4.15 billion by 2028, according to the latest Global Payments Report 2024 from Boston Consulting Group (BCG). Amid a global slowdown in growth rates, Qatar’s focus on digital transformation and investment in fintech innovation positions it strongly within the competitive landscape of the GCC region.
The Global Payments Report 2024 marks BCG’s 22nd annual analysis of the global payments industry. Aptly titled Fortune Favors the Bold, the report emphasizes the importance of meeting evolving customer expectations, addressing increased regulatory scrutiny, and capitalizing on technological advancements.
While global growth is slowing, Qatar’s commitment to digital innovation places it in a favorable position to leverage new opportunities within the region and adapt to shifting market demands.
Globally, payments revenue growth is projected to slow significantly, with CAGR halving to 5% through 2028, resulting in a global payments revenue pool of $2.3 trillion. This marks a sharp decline from the 9% CAGR observed over the previous five years, which pushed the global revenue pool to $1.8 trillion in 2023.
North America and Europe are expected to experience the most significant slowdowns, with projected annual revenue increases of just 3%. In contrast, regions like the Middle East, Latin America, and Asia-Pacific are forecasted to see higher growth, with the Middle East projected to grow at a 7% CAGR, driven by accelerating digital payments in emerging markets.
Qatar Payments Sector Positioned for Sustainable Expansion
Qatar’s payments sector has experienced steady growth, with revenues rising from $2.6 billion in 2018 to $3.2 billion in 2023, reflecting a CAGR of 4.4%. By 2028, Qatar’s revenue pool is expected to increase by another 29%, reaching $4.15 billion.
Transaction volumes in Qatar are projected to rise from 988 million in 2023 to 1.38 billion by 2028, marking a 40% growth. This expansion is driven by Qatar’s efforts in digital transformation, increased fintech adoption, and initiatives aimed at broadening financial inclusivity across the country.
Lukasz Rey, Managing Director and Partner, Head of Middle East Financial Institutions Practice at BCG, commented: “Qatar’s payments sector is reaching a critical phase in its evolution, transitioning from rapid growth to sustainable, resilient frameworks. Qatari firms must modernize their infrastructure to stay competitive, adopting cloud-native, modular systems that optimize unit economics and reduce tech debt.
Companies enhance customer interactions and reinforce fraud detection and operational efficiencies by integrating advanced technologies like generative AI and real-time payment capabilities. As global regulatory pressures increase, firms that build end-to-end responsibility into their technology stack and develop robust risk and compliance frameworks will lead to delivering seamless, secure digital experiences that meet the demands of both consumers and shareholders.”
Digital payments are nearing maturity in leading markets like the U.S. and U.K., where cash now accounts for less than 10% of transactions.
Real-time payments are now standard in more than 60 countries, and central bank digital currencies (CBDCs) are expected to bring further efficiencies and programmable capabilities to the payments landscape. Generative AI, adopted by early movers, has already reduced operational costs by up to 70%, highlighting the need for modernization to stay competitive.
Future-Proofing Qatar’s Payments Industry for Sustainable Success
As technologies like generative AI, real-time payments, and digital currencies reshape the global payments landscape, Qatar’s payments sector is positioned for continued progress through innovation and strategic investment.
Nabil Saadallah, Managing Director & Partner at BCG, added: “Qatar’s payments sector faces a pivotal moment where meeting investor, regulator, and consumer expectations requires a shift from traditional models to forward-thinking strategies.
As transaction volumes are projected to rise by 40% by 2028, companies must advance beyond business-as-usual practices, embracing decisive capital allocation and refined portfolio strategies to unlock profitable growth. Firms that prioritize interoperability, robust customer experiences, and regulatory collaboration will be best positioned to foster broad adoption and trust.
