• Home
• Fin tech

The tradition of “Eidiya” in the Arab world is no longer what it used to be. Once associated with crisp banknotes handed to children and relatives on Eid morning, it is now undergoing a digital transformation. With the rapid rise of financial technology and the widespread adoption of electronic payment apps, Eidiya is gradually shifting from physical cash to instant digital transfers sent with a single tap on a smartphone.

This shift reflects not only a change in social customs but also the rapid growth of the fintech sector across the region. Digital payments are increasingly becoming an integral part of daily life in many Arab countries.

A Boom in Digital Payments

The Middle East and North Africa (MENA) region is witnessing significant growth in digital payments, driven by the proliferation of smartphones, the expansion of e-commerce, and the rise of digital banking services.

Recent reports suggest that digital payment volumes in the Gulf region could reach approximately $227 billion by 2025, with annual growth projected at around 10% in the years that follow. Since 2020, digital payment volumes across the region have surged by 658%, signaling a clear shift in consumer behavior toward electronic transactions.

At the same time, adoption rates of digital payments have reached nearly 91% of users, reflecting the widespread integration of financial technology solutions into everyday life.

Experts: Digital Eidiya Reflects Changing Consumer Behavior

Fintech and digital economy experts believe that the growing popularity of digital Eidiya is not merely a seasonal trend tied to Eid celebrations, but rather a reflection of a broader transformation in consumer behavior.

In statements to FinTech Gate, experts emphasized that smartphones and digital wallets have become essential tools in daily life, making peer-to-peer money transfers faster and more convenient than traditional methods.

Banking expert Amr Hussein noted that digital Eidiya has become a practical solution, especially for families spread across different cities or countries. Financial gifts can now be sent instantly via banking apps or e-wallets without the need for in-person meetings. He added that the rise of e-commerce has further reinforced this trend, allowing children and young people to spend their digital Eidiya directly on online purchases.

Financial expert Heba Ahmed highlighted that the transformation of Eidiya culture aligns with the rapid expansion of digital financial services in the region. Arab governments are increasingly promoting cashless economies and investing in digital payment infrastructure to enhance financial inclusion and reduce reliance on cash.

She added that digital Eidiya is likely to become a natural part of Eid traditions in the coming years, particularly with the emergence of a new generation that relies heavily on financial apps in their daily transactions.

A Social Tradition in a Digital Form

As this transformation continues, money transfer apps and digital wallets have become popular channels for sending Eidiya among family and friends—especially among younger generations who rely heavily on smartphones for managing their finances.

Today, users can send Eidiya through banking apps, digital wallets, or even via e-gift cards that can be used for online shopping. New forms of digital gifting have also emerged, including subscriptions, digital games, smart devices, and mobile phones.

This evolution provides children and young people with greater flexibility in choosing what they want, while offering families a faster and more convenient way to send gifts—particularly when geographical distances separate loved ones.

A New Generation Driving the Shift

Young people are playing a central role in accelerating this transformation. Studies show that younger generations are the most inclined to adopt digital wallets and financial applications.

In several countries across the region, digital wallets have become one of the most widely used payment methods, while smartphones serve as the primary platform for managing daily financial transactions.

Meanwhile, the expansion of fintech startups continues to fuel this shift, with digital payments accounting for more than half of the fintech market in the MENA region.

Eid Traditions with a Digital Spirit

Despite the changing form of Eidiya, its social meaning remains unchanged. In Arab culture, Eidiya is not merely a monetary gift—it is a symbol of joy, generosity, and shared celebration.

While it was once passed from hand to hand, it is now sent from phone to phone. Yet it continues to carry the same message: spreading happiness and sharing the joy of Eid with family and friends.

As the Arab world accelerates its transition toward digital economies, digital Eidiya is poised to become a permanent feature of Eid celebrations—blending cherished traditions with modern technology.