UAE’s Ramadan consumer spend pivots on cashless transactions

dubai — Criteo, the global technology company powering the world’s marketers with trusted and impactful advertising, has released new research on online consumer spending in the UAE during the holy month of Ramadan.

While consumer spending is still sluggish in the wake of the coronavirus pandemic,64 per cent of respondents said they are making more online purchases now. Online orders for groceries, beauty products, and meals for home delivery have increased the most in recent weeks.

In a significant behavioural shift brought on by Covid-19, consumers are moving away from cashbased transactions. In fact, bank visits were a low priority for respondents and 83 per cent made fewer visits during the lockdown. The last few weeks have seen online payments becoming a preferred mode of payment even when a cash-on-delivery option was available.

“The Covid-19 pandemic has accelerated the shift to online for every sector, and this includes digital payments. Criteo’s latest research shows that currency is being replaced with credit cards, mobile wallets and other forms of electronic payments,” Alistair Burton, Country Manager

MEA at Criteo, said. “UAE consumers have traditionally opted for cash-based transactions, but safety concerns during the Covid-19 pandemic have fostered trust in digital payments. It’s time for businesses to think about the long-term implications of this shift in consumer behaviour.”