Over half of the UAE population are using digital wallets for the first time, a new survey by leading Mena payments solutions provider, Checkout.com, has found.
The survey reveals that security remains the most important factor for UAE residents when shopping online – with nearly 40% of respondents trusting digital wallets as much as banks. Indeed, the future bodes well for digital wallets, with 48% of respondents believing that digital wallets could lead to a cashless society in a decade.
The survey sought to discover the growth in digital wallet usage among UAE residents as online payments surge. The Checkout.com Menap Payments Report of 2021 revealed that approximately 83% of UAE residents would maintain or even increase their current level of eCommerce spending into 2022.
Cash usage continues to decline
The pulse survey of over 1,000 UAE consumers found cash usage continues to decline, with only 20% of respondents saying they use COD (cash-on-delivery) for online purchases. This compares to 40% in 2020, according to Checkout.com’s 2021 Menap report.
The growth of digital wallet usage by UAE residents has been spurred by the ease of paying bills, with 58% of respondents ranking this as the number one item they use their digital wallet for to make payments, with groceries a close second (55%).
The report also reveals that 28% of UAE residents use wallets to send funds to friends and family, showing the popularity of peer-to-peer transactions over traditional bank-to-bank transfers. Digital wallets also stand to shake up the multibillion-dollar remittance market in the Gulf, with a third of UAE residents stating they are using digital wallets to send funds overseas.
Digitisation to stay
Mo Ali Yusuf, Regional Manager for Menap at Checkout.com, said: “With more and more people embracing the convenience of digital wallets coupled with the reassurance of their transactions being safe and secure, digitisation of the payment system is unstoppable. The findings reveal an undeniable trend towards digital wallets becoming the future of consumer payments.”
The report revealed little difference in online shopping habits between men and women, demonstrating digitisation has appeal across genders. However, there is a broader appeal for digital wallets amongst younger shoppers. The findings highlight that 16% of 18-24 year-olds prefer digital wallets compared to 9% amongst the 25-34 age group.--TradeArabia News Service