How Digital Wallets Are Revolutionizing Payments in the UAE? Key Trends You Need to Know

A survey conducted by Checkout.com and YouGov in May 2022 revealed exciting insights into the growing adoption of digital wallets among UAE residents.

Key Findings on Digital Wallet Adoption

Digital Wallet Usage Surges

Over 50% of UAE residents now use digital wallets. This reflects the increasing popularity of online payments in the region, and indicates a significant shift in consumer behavior.

Security Takes Center Stage

Security remains a top concern for online shoppers. In fact, nearly 40% of residents trust digital wallets as much as banks. Furthermore, 48% believe digital wallets could drive the UAE toward a cashless society within ten years.

Cash Usage Declines

Cash-on-delivery (COD) has dropped significantly. Specifically, in 2022, only 20% of residents used COD for online purchases, compared to 40% in 2020. This trend clearly demonstrates a shift away from cash-based transactions.

Why Residents Prefer Digital Wallets

Convenience in Daily Life

58% use wallets for bill payments.
55% use them for grocery shopping.

Clearly, digital wallets have become essential for everyday transactions, providing unmatched convenience.

Ease of Peer-to-Peer Transfers

Digital wallets are increasingly popular for transferring funds. About 28% of residents send money to friends and family using this method, which eliminates the need for traditional bank transfers.

Cross-Border Transactions

More than a third of residents now rely on digital wallets to send money overseas. As a result, they are disrupting the Gulf’s traditional remittance market and offering a faster, more efficient alternative.

Future Trends and Demographics

Age-Based Preferences

Younger consumers clearly prefer digital wallets. For example, 16% of 18-24-year-olds favor wallets, compared to only 9% of those aged 25-34.

Equal Appeal Across Genders

Digital wallets resonate equally with men and women, proving their universal appeal across demographics.

Continued E-Commerce Growth

The 2021 MENAP Payments Report by Checkout.com revealed that 83% of residents planned to maintain or increase their e-commerce spending into 2022. This shows that digital payment solutions are critical to supporting this growth.

Expert Insights

Mo Ali Yusuf, Regional Manager for MENAP at Checkout.com, stated:
“As more people embrace the convenience and security of digital wallets, the shift toward digital payments is unstoppable. These findings confirm that digital wallets are the future of consumer payments.”

Expert Insights

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