Six in 10 consumers want UAE to turn into cashless economy, study shows

Six out of 10 people in the UAE are in favour of the country becoming a cashless economy, according to a new survey conducted by YouGov.

The market research company said high-income households earning more than Dh25,000 a month are more likely to use digital payments, with 76 per cent of them preferring this medium.

The findings suggest that behavioural changes brought about by Covid-19 will probably continue even after the pandemic.

Speed, convenience and limited human contact were cited as the main reasons for the increase in cashless transactions.

More than half (52 per cent) of the survey respondents said their use of cash had declined since the outbreak began, while 17 per cent said it had increased.

This resonates with the findings of a joint study in June by Dubai Police, Dubai Economy and Visa, which said UAE consumers were expected to continue using contactless payment methods in physical stores and when shopping online even after the threat posed by the virus subsides.

“By maximising performance and transparency in doing business while minimising risk and logistical bottlenecks, digital payments play a major role in the advancement of the knowledge economy at a macro level,” said Ali Shabdar, regional director for the Middle East and Africa at Zoho Corp, a software development company.

“The UAE is a pioneer in FinTech in the region and we can expect further innovations in the industry thanks to the efforts of the government.”

The virus is fuelling the fast adoption of digital payments around the world and this structural shift will speed up when the economy begins to recover, according to consultancy Bain & Company.

In January, GlobalData, a data and analytics company, listed Finland, Sweden, China, South Korea and the UK as countries with the most potential to become cashless leaders over the next decade.

The YouGov survey, which surveyed 1,000 people in the UAE last month, found that men were more in favour of a cashless economy, with 67 per cent endorsing it, compared with 55 per cent of women.

While shopping at physical outlets, about eight out of 10 UAE residents said they considered it important to be able to make payments through credit or debit cards.

Only five out of 10 said they would prefer to make cash payments, while 60 per cent of respondents used digital platforms such as Apple Pay, Samsung Pay and e-wallets.

Contactless payments are more in favour among high-income earners, with 86 per cent interested in paying with cards and 69 per cent preferring to pay with digital wallets, the YouGov survey found.