For years, digital payments have been dominated by a handful of global card networks. For merchants, participating in this system has often meant high processing fees, delayed settlements, complex infrastructure, and a constant risk of chargebacks. The trade-off was justified as the cost of convenience. But today, that trade-off is being questioned.
Across India, Brazil, the UAE, Bahrain, Saudi Arabia, Qatar, and beyond, a profound shift is underway. National regulators and central banks are building new digital payment ecosystems that are real-time, secure, low-cost, and increasingly merchant-centric. These systems -including domestic payment schemes and real-time payment platforms – are enabling the growth of alternative payment methods (APMs), challenging the dominance of cards and reshaping the economics of getting paid.
India’s Unified Payments Interface, or UPI, is perhaps the most dramatic example. Introduced by the National Payments Corporation of India (NPCI) and backed by the Reserve Bank of India (RBI), UPI has grown from 92 million monthly transactions in 2017 to over 117 billion transactions annually in FY2024. In value terms, UPI facilitated ₹246.8 lakh crore – approximately $2.96 trillion USD – in transactions last year alone. As of early 2024, UPI accounts for more than 75% of all retail digital payments by volume in India. Its growth continues to accelerate.
India’s Unified Payments Interface, or UPI, is perhaps the most compelling example of how domestic infrastructure can transform digital payments at scale. Introduced by the National Payments Corporation of India (NPCI) and backed by the Reserve Bank of India (RBI), UPI processed 185.8 billion transactions in the fiscal year 2024–25. In total value, these transactions amounted to over ₹200 lakh crore, or roughly $2.4 trillion USD. According to official data reported by the Government of India, UPI accounted for 83.7% of all retail digital payments by volume in the country. This rapid and sustained growth has solidified UPI’s role as the backbone of India’s digital payment infrastructure – and a global benchmark for what’s possible when public infrastructure meets private innovation.
But UPI’s real breakthrough lies not in volume alone – it’s in what it enables for merchants. UPI allows for instant settlement, directly into a merchant’s account. The system is QR-code based and device agnostic, meaning small businesses can accept payments with minimal infrastructure. Most importantly, UPI transactions for small merchants are processed at zero merchant discount rate (MDR), eliminating the fees that card networks have traditionally imposed. In a country where cash flow and margin pressure define the daily reality of millions of businesses, UPI is not just a payment method – it’s economic empowerment.
Brazil tells a similar story. Pix, the country’s national real-time payments platform launched by the Central Bank of Brazil, processed over 64 billion transactions valued at $4.5 trillion USD in 2024, surpassing the combined total of credit, debit, and bank-issued Boletos. More than 90% of Brazilian adults now use Pix, and the adoption among merchants has been especially rapid. Like UPI, Pix offers instant settlement, no mandatory fees, and open accessibility. For small businesses across Brazil, it has become the preferred method of payment – not because it’s trendy, but because it’s better.
What’s most striking is that this shift is not being led by Silicon Valley or multinational fintechs. It’s being led by regulators. And the GCC is joining them.
The Central Bank of the UAE (CBUAE) issued its formal Open Finance Regulation in early 2024 – one of the first of its kind globally. The regulation enables secure, API-based access to financial data and payment initiation by licensed third parties. This move is a cornerstone of the UAE’s Financial Infrastructure Transformation (FIT) Programme, which aims to reduce dependency on foreign card schemes and accelerate the adoption of sovereign, interoperable alternative payment methods.
Meanwhile in Bahrain, the Central Bank of Bahrain (CBB) has emerged as an early leader in open banking regulation, with a live framework since 2019. Bahrain’s real-time payment system, Fawri has been widely adopted for instant consumer and business transactions. The CBB has taken a progressive stance on enabling domestic digital wallets, APMs, and API-based fintech integrations – positioning Bahrain as a regulatory testbed for payments innovation in the region.
Saudi Arabia is also making significant strides toward a cashless economy. The Saudi Central Bank (SAMA) introduced the Sarie instant payment system to enable 24/7 real-time account-to-account transfers for individuals and businesses. As of early 2025, digital payments account for approximately 70% of all retail transactions in the Kingdom, according to SAMA – a clear reflection of the country’s accelerating shift away from cash. This growth is driven by widespread adoption of digital wallets, contactless payments, and infrastructure like Sarie. Backed by Vision 2030, the Kingdom’s push toward digital transformation is underpinned by coordinated regulatory support and investment in national payment infrastructure, positioning Saudi Arabia as a regional leader in digital payment adoption.
Qatar is not far behind. The Qatar Central Bank (QCB) launched its FAWRAN instant payment service in March 2024, intended to facilitate quicker financial and commercial transactions. The service enables users to send and receive funds instantly while offering round-the-clock availability. Additionally, the QCB has been proactive in developing an alternative payment method infrastructure to keep pace with innovation.
Together, the UAE, Bahrain, Saudi Arabia, and Qatar are laying the groundwork for a future in which merchants across the Gulf can accept digital payments that are faster, cheaper, and fully aligned with national financial policy – rather than dependent on foreign intermediaries.
This is more than a payments evolution. It’s an infrastructural pivot. For decades, payments have operated as closed systems controlled by private entities. Now, governments are treating payments like roads, ports, or telecom – as foundational infrastructure that should serve national interests, protect consumers, and empower local businesses.
The implications for merchants are profound. Payment acceptance is becoming more affordable, settlement delays will disappear, and interoperability will replace lock-in. What once required expensive hardware and bank partnerships is now as simple as a QR code and a compliance-aligned wallet.
At Pay10, we believe this is not the future – it’s already unfolding. As the UAE’s Open Finance pioneer, we are building for a reality in which real-time, regulator-backed, merchant-first APMs are the default. We’re not alone in this vision – we’re part of a global movement that’s already reshaped how merchants get paid in the world’s most dynamic economies.
The card era isn’t over – but its monopoly is. A quieter, faster, more inclusive revolution has begun. And for merchants everywhere, that’s very good news.
