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GCC’s digital wallet ecosystem - The role of telco wallets

GCC’s digital wallet ecosystem - The role of telco wallets

April 2, 2025

Cashless in the Gulf: The rise of telco-powered digital wallets

Digital wallets have emerged as a cornerstone of modern finance, enabling secure, cashless transactions via mobile devices. These software-based systems store users’ payment information and passwords, allowing for fast, encrypted transactions both online and in-store. Beyond convenience, they support a wide range of everyday financial activities, such as peer-to-peer transfers, e-commerce purchases, international remittances, bill payments, and contactless payments at physical stores. Many also include added features like loyalty programs or budgeting tools.

Telco wallets across the GCC
Telco wallets across the GCC

A variety of players offer digital wallets, including global tech firms, banks, FinTech startups, multi-service platforms, and telecom companies. In the Gulf Cooperation Council (GCC), telco wallets are gaining significant momentum, fueled by high smartphone penetration, progressive digital payment regulations, and strong demand for affordable cross-border transfers among the region’s large expatriates population.

"Digital wallets are transforming financial ecosystems, providing convenient, cost-efficient, and secure financial solutions right in each person pocket"
Portrait of Luca Turba
Principal
Dubai Office, Middle East

Evolving telco wallet offerings in the GCC: Charting the path forward

With telco wallets becoming more prominent in the GCC, recent developments suggest a growing focus on both specific user groups and evolving product features. In Saudi Arabia, where expatriates represent 42 percent of the population and remittance outflows reached USD 39 billion in 2023, offerings tend to emphasize accessible money transfer options and customer engagement tools such as loyalty programs. In the UAE and Qatar, where expatriates make up around 88 percent of the population, wallet providers appear to be concentrating on high-demand use cases like international remittances and mobile point-of-sale payments. In some cases, features like “visitor wallets” are about to be introduced to serve short-term residents and tourists.

Across the region, product functionality varies widely, from basic transaction capabilities such as bill payments and e-commerce integration, to more advanced features like cardless ATM access, salary transfers, and spending insights. These developments point to a broader effort to respond to local preferences, build user trust, and offer solutions that align with the region’s digital payment habits.

Telco wallets in the GCC have laid a strong foundation by addressing essential financial needs like remittances, bill payments, and in-store transactions. Looking forward, they are well-positioned to evolve into interoperable, feature-rich platforms - integrating digital assets, enabling cross-border transactions, and offering AI-powered financial services within super-app ecosystems.

The road ahead for telco wallets
The road ahead for telco wallets

Explore our report on the future of digital finance in the GCC, where we look at how telco wallets are expanding beyond basic payments to offer more integrated and versatile financial services. As these platforms continue to develop, they raise important considerations for banks, FinTechs, and regulators alike. From digital assets and AI-driven features to regional interoperability, telco wallets are becoming a key part of the region’s evolving financial landscape.

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GCC’s digital wallet ecosystem - The role of telco wallets

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Explore the transformative role of telco wallets in the Gulf Cooperation Council (GCC) as they redefine cashless transactions. Discover how these platforms pave the way for innovative features and enhanced user trust in digital finance.

Published April 2025. Available in
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Portrait of Nizar Hneini
Senior Partner, Managing Director Middle East
Doha Office, Middle East
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