Dubai, 18 August, 2015: Cash is the preferred payment method of UAE residents for goods and services, according to a new survey released today by Network International, the leading payment solutions provider in the Middle East. 

Cash was the top payment method for UAE residents in 10 out of 12 purchase categories1 ranging from groceries through to school fees. Credit cards were the next most frequently used payment method, followed by debit cards, prepaid cards and other payment methods including cheques and online banking.

The Network International survey found that UAE residents perceive cash to be quicker, safer and offering more control on spending than using a debit or credit card. The survey was conducted in Q2 2015, covering a sample size of 1020 UAE residents (both UAE citizens and expats) living in all seven Emirates of the UAE. Surveyed online by YouGov, the findings provide great insights into the spending behavior of UAE residents, especially with regards to the method of payments. 

The survey found that only one in six residents (15 per cent) use a debit card 2-3 times a week and just 12 per cent use a debit card four or more times a week. Over half of UAE residents (51 per cent) said they only use their debit card once or less than once a week.

Credit cards are used more frequently by UAE residents, with 17 per cent using a card 2-3 times a week and 16 per cent using their card more than four times a week. Just over a third (37 per cent) said they use a credit card once or less than once a week. 

The survey indicated that Western residents are the most frequent users of debit cards, with 30 per cent using their cards between 2-5 times a week. Arab expats were the next most frequent debit card users (23 per cent), followed by Asians (18 per cent) and Emiratis (17 per cent). Asian residents were the most frequent users of credit cards with 25 per cent using a credit card between 2-5 times a week, followed by Arab expats (22 per cent), Westerners (25 per cent) and Emiratis (18 per cent).

More than a fifth of UAE residents (22 per cent) said they do not have a debit card rising to 29 per cent who do not have a credit card.

Commenting on the results of the survey, Bhairav Trivedi, Chief Executive Officer of Network International, said: "Cash is clearly still king for UAE residents which is certainly unique to the region and a contrast to other global trade centres where cashless transactions are more prevalent.

"This is not a new trend, but is certainly at odds with the UAE's adoption of new technologies and drive to be a leader on innovation. Cash will remain important as a payment system in the UAE, but there is a huge opportunity to educate UAE consumers on the merits of alternative payment methods."

The majority of UAE residents (77 per cent) said they normally purchase goods2, ranging from groceries to luxury items, in-store or from a merchant. Less than one-in-10 (8 per cent) said they purchased goods online and only 4 per cent said they currently purchase goods using a mobile device.

In contrast, the majority of UAE residents (57 per cent) said they would be comfortable using a smart phone to pay for goods and services. One in five (20 per cent) said they would be very comfortable using a mobile device with only 19 per cent saying they would not be comfortable.

Bhairav Trivedi added: "There is clearly appetite for new methods of payment here in the UAE. With one of the highest penetrations of smart phone use and an increasingly sophisticated young population, new technology will clearly shape the future of the payments landscape in the region."

-Ends-

Notes:
1.     Respondents were asked how they normally pay for 12 purchase categories including: Groceries; clothes; electronic goods; luxury items; household goods; gasoline/fuel; restaurants; fast food; utilities; high value items (cars); school fees; remittances to home countries.

2.     Respondents were asked where they normally purchase the following items: groceries; clothes; electronic items; luxury items; household goods; fast food; high value items; remittances to home country.

About Network International:
Established in 1994, Network International LLC is the largest acquirer in the UAE, and a leading payment solutions provider in the Middle East and North Africa region (MENA). The company's service offering comprises a comprehensive range of payment products and services for both the Issuing and Acquiring segments of banks, financial institutions and retail merchants. This includes credit, debit and prepaid card processing, ATM management and monitoring, merchant acquiring and processing, fraud management, e-commerce services and mobile solutions for the payments industry, with the objective of enabling speedy, secure and convenient payment transactions for customers. In addition, the company offers several value-add products including data analytics, scoring and loyalty solutions. Network International has Operation centers in the UAE, Egypt and India, with its corporate head office in Dubai. The company continues to invest in strategic partnerships that will increasingly see its influence spread across the region.

Network International is a Principal Member of Visa International and MasterCard International in the UAE and enjoys extension of its MasterCard License in other key countries. It is also a member of JCB and Union Pay card schemes, and it owns and manages the Diners Club International Franchise in the UAE, Egypt, Lebanon and Jordan. In 2013, the company launched a GCC based domestic scheme, Mercury, and partnered with Discover Financial Services (DFS) to allow global acceptance of Mercury cards on the Discover, Diners Club International and PULSE networks. Network International, a Payment Card Industry Data Security Standard (PCI DSS) certified company, is also a major player in the international remittance industry and owns a majority stake in TimesofMoney Ltd., a leading global online remittance and digital payments company facilitating cross-border remittances and domestic payments in emerging economies.

For further information on Network International, please contact:
Tricia Rego
ASDA'A Burson-Marsteller
Dubai,
UAE
Tel: 971-4-4507600
Fax: 971-4-4358040
Email: tricia.rego@bm.com

© Press Release 2015