Cash no longer king for UAE consumers

The United Arab Emirates (UAE) is seeing a rapid shift towards digital payments as consumers are increasingly opting for contactless and online transactions, according to a recent report by Visa, the global payments technology company.

The report, titled “Cashless Cities: Realizing the Benefits of Digital Payments,” reveals that the UAE has one of the highest rates of digital payment adoption in the world, with 87% of consumers using digital payments at least once a week.

The COVID-19 pandemic has accelerated the adoption of digital payments, as consumers are seeking safer and more convenient ways to pay. The report notes that 83% of UAE consumers have increased their usage of contactless payments during the pandemic, with 69% citing safety and hygiene concerns as the main reason for doing so.

Furthermore, the report highlights the government’s efforts to promote digital payments in the UAE. The country has implemented a number of initiatives to encourage digital payment adoption, including the launch of the National Payments Platform (NPP) and the UAE Pass digital identity platform, which provide a secure and convenient way for consumers to make payments and access government services.

The shift towards digital payments is not only benefiting consumers, but also businesses. The report notes that businesses that accept digital payments can benefit from increased sales, reduced costs, and improved cash flow.

Despite the growing popularity of digital payments, cash is still widely used in the UAE, particularly for small transactions. However, the report suggests that the trend towards digital payments is likely to continue, with more consumers and businesses recognizing the benefits of going cashless.

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Sources:
Cashless Cities: Realizing the Benefits of Digital Payments" report by Visa
The National article