DUBAI, UAE - A new survey by leading MENA payments solutions provider, Checkout.com, has found over half of the UAE population are using digital wallets for the first time.
The survey reveals that security remains the most important factor for UAE residents when shopping online – with nearly 40 percent of respondents trusting digital wallets as much as banks. Indeed, the future bodes well for digital wallets, with 48 percent of respondents believing that digital wallets could lead to a cashless society in a decade.
The survey sought to discover the growth in digital wallet usage among UAE residents as online payments surge. The Checkout.com MENAP Payments Report of 2021 revealed that approximately 83 percent of UAE residents would maintain or even increase their current level of eCommerce spending into 2022. The pulse survey of over 1000 UAE consumers found cash usage continues to decline, with only 20 percent of respondents saying they use COD (cash-on-delivery) for online purchases. This compares to 40 percent in 2020, according to Checkout.com’s 2021 MENAP report.
The growth of digital wallet usage by UAE residents has been spurred by the ease of paying bills, with 58 percent of respondents ranking this as the number one item they use their digital wallet for to make payments, with groceries a close second (55 percent). The report also reveals that 28 percent of UAE residents use wallets to send funds to friends and family, showing the popularity of peer-to-peer transactions over traditional bank-to-bank transfers. Digital wallets also stand to shake up the multibillion-dollar remittance market in the Gulf, with a third of UAE residents stating they are using digital wallets to send funds overseas.
Mo Ali Yusuf, Regional Manager for MENAP at Checkout.com, said, “With more and more people embracing the convenience of digital wallets coupled with the reassurance of their transactions being safe and secure, digitization of the payment system is unstoppable. The findings reveal an undeniable trend towards digital wallets becoming the future of consumer payments.”
The report revealed little difference in online shopping habits between men and women, demonstrating digitization has appeal across genders. However, there is a broader appeal for digital wallets amongst younger shoppers. The findings highlight that 16 percent of 18-24 year-olds prefer digital wallets compared to 9 percent amongst the 25-34 age group.
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This survey was commissioned by Checkout.com and conducted by YouGov, polling 1,008 consumers in both the UAE during the period of UAE Sample between 19th and 24th May 2022.
Checkout.com Press contact: checkout.mena@bcw-global.com
About Checkout.com
Checkout.com is a global payments solution provider that helps businesses and their communities thrive in the digital economy. Purpose-built with performance, scalability and speed in mind, our modular payments platform is ideal for enterprise businesses looking to seamlessly integrate better payment solutions. And they can accept all major international credit and debit cards, as well as popular local payment methods, including Fawry, Mada, QPay and more. Plus their strong local presence and deep understanding of the regional payments ecosystem makes Checkout.com the market leader across the Middle East, North Africa and Pakistan. Since 2019, the powerful payments platform has processed more than 400 million eCommerce transactions in the region. With more than 1900 people across 19 offices worldwide, we offer innovative solutions that flex to your needs, valuable insights that help you get smart about your payments' performance, and expertise you can count on as you navigate the complexities of an ever-shifting world. It's why businesses like Crypto.com, Veepee, Getty Images, Grab, SHEIN, Sony, Binance and Wise trust Checkout.com.
