19 August 2015
DUBAI -- Cash is the preferred payment method of UAE residents for goods and services, a new survey by Network International, the leading payment solutions provider in the Middle East, revealed Tuesday.
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 checks 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 found that only one in six residents (15 percent) use a debit card two to three times a week and just 12 percent use a debit card four or more times a week. Over half of UAE residents (51 percent) 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 percent using a card two to three times a week and 16 percent using their card more than four times a week. Just over a third (37 percent) 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 percent using their cards between two to five times a week. Arab expats were the next most frequent debit card users (23 percent), followed by Asians (18 percent) and Emiratis (17 percent). Asian residents were the most frequent users of credit cards with 25 percent using a credit card between two to five times a week, followed by Arab expats (22 percent), Westerners (25 percent) and Emiratis (18 percent).
More than a fifth of UAE residents (22 percent) said they do not have a debit card rising to 29 percent who do not have a credit card.
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 centers 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 percent) said they normally purchase goods, ranging from groceries to luxury items, in-store or from a merchant. Less than one-in-10 (eight percent) said they purchased goods online and only four percent said they currently purchase goods using a mobile device.
In contrast, the majority of UAE residents (57 percent) said they would be comfortable using a smart phone to pay for goods and services. One in five (20 percent) said they would be very comfortable using a mobile device with only 19 percent saying they would not be comfortable.
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."
DUBAI -- Cash is the preferred payment method of UAE residents for goods and services, a new survey by Network International, the leading payment solutions provider in the Middle East, revealed Tuesday.
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 checks 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 found that only one in six residents (15 percent) use a debit card two to three times a week and just 12 percent use a debit card four or more times a week. Over half of UAE residents (51 percent) 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 percent using a card two to three times a week and 16 percent using their card more than four times a week. Just over a third (37 percent) 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 percent using their cards between two to five times a week. Arab expats were the next most frequent debit card users (23 percent), followed by Asians (18 percent) and Emiratis (17 percent). Asian residents were the most frequent users of credit cards with 25 percent using a credit card between two to five times a week, followed by Arab expats (22 percent), Westerners (25 percent) and Emiratis (18 percent).
More than a fifth of UAE residents (22 percent) said they do not have a debit card rising to 29 percent who do not have a credit card.
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 centers 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 percent) said they normally purchase goods, ranging from groceries to luxury items, in-store or from a merchant. Less than one-in-10 (eight percent) said they purchased goods online and only four percent said they currently purchase goods using a mobile device.
In contrast, the majority of UAE residents (57 percent) said they would be comfortable using a smart phone to pay for goods and services. One in five (20 percent) said they would be very comfortable using a mobile device with only 19 percent saying they would not be comfortable.
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."
© The Saudi Gazette 2015
