This survey was commissioned by Checkout.com and conducted by YouGov, polling over a 1000 UAE residents during May 19 and May 24, 2022.
More than half of the UAE population is using digital wallets , according to a new survey by leading MENA payments solution provider, Checkout.com. This survey sought to discover the growth in digital wallet usage as online payments surge.
Security is the most important factor for UAE residents when making online purchases. With nearly 40 per cent trusting digital wallets as much as banks, while 48 per cent believe that digital wallets could lead to a cashless society in a decade.
According to the pulse survey of over 1000 UAE consumers, cash usage has continued to decline, with only 20 per cent saying they use COD (cash-on-delivery) for online purchases as compared to 40 percent in 2020.
The growth of digital wallet usage by UAE residents has been spurred by the ease of paying bills. 58 per cent of those surveyed use their digital wallet to pay bills, while 55 per cent to buy groceries.
The report also reveals that 28 per cent 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 over a third of UAE residents stating they are using digital wallets to send funds overseas.
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, online shopping habits of men and women were similar, demonstrating digitisation has appeal across both genders.
Digital wallets, however, have a broader appeal to younger consumers. According to the findings, 16 per cent of 18-24 year olds prefer digital wallets, compared to 9 per cent of 25-34 year olds.
The Checkout.com MENAP Payments Report of 2021 further revealed that approximately 83 percent of UAE residents would maintain or even increase their current level of ecommerce spending into 2022.