Nearly all UAE small businesses join digital payments trend, Visa says
More than nine in 10 (97 per cent) small and medium-sized businesses in the UAE adopted new digital payment channels by the end of last year, compared with the global average of 83 per cent, according to Visa.
The trend is expected to continue this year as consumers look for safer and convenient payment options amid the Covid-19 pandemic, said Shahebaz Khan, Visa’s general manager for the UAE, in the digital payment company’s Back to Business report.
More than four in five (86 per cent) SMBs in the UAE expect customers to continue to opt for contactless payments even after a vaccine becomes widely available.
Visa interviewed 250 small business owners at companies with 100 or fewer employees in Brazil, Canada, Germany, Hong Kong, Ireland, Russia, Singapore, the UAE and the US in November.
It found that 44 per cent of UAE businesses had only begun offering contactless payments for the first time while a similar number offered contactless payment options more regularly.
SMBs are similar to small and medium enterprises in terms of size and characteristics but differ by employment, with the former often relying on part-time workers or outsourced staff and the latter employing full-time workers.
UAE-based companies were the second most likely globally to face customer concerns about fraud, with 94 per cent saying they had encountered fears about payment technology, compared with 96 per cent in Hong Kong and a global average of 70 per cent.
“We believe 2021 will place greater attention on security and fraud, and the trial of more emerging digital commerce tools that can help SMBs in the UAE thrive,” said Mr Khan.
Visa also polled more than 1,500 adults in Brazil, Canada, Germany, Hong Kong, Ireland, Russia, Singapore, the UAE and the US about their buying habits.
At 37 per cent, consumers in the UAE are the least likely to increase the amount of time they spend shopping in person after a vaccine becomes widely available, compared with a global average of 53 per cent.
Consumers are also keen to have alternatives to handling cash, pens and keypads while shopping in person. In the UAE, 74 per cent of consumers said they will not visit a shop without contactless payment options, compared with 47 per cent worldwide.
Ninety-three per cent of local customers now expect digital options when they shop in person, with “tap and go” credit or debit cards the preferred payment option (57 per cent), followed by mobile wallets (51 per cent) and mobile payment apps (44 per cent).
In a separate report yesterday, Mastercard said it expects the 20 per cent to 30 per cent surge in e-commerce spending, as a share of total retail spending in the Middle East and Africa region, to become a permanent feature.
The company said 73 per cent of consumers in the region were shopping more online than they did before the pandemic.
We believe 2021 will place greater attention on security and the trial of more emerging digital commerce tools SHAHEBAZ KHAN
Visa’s general manager for the UAE