You are currently viewing According to a report, more than half of UAE citizens use digital wallets to make payments

According to a report, more than half of UAE citizens use digital wallets to make payments

As per the Checkout.com, younger consumers are driving payment method uptake.

According to a new survey, more than half of all UAE citizens now utilize digital wallets as online purchases have increased since the Covid-19 pandemic.

Digital wallets have a larger appeal among younger shoppers. According to a survey by payments solutions provider Checkout.com, which interviewed 1,008 consumers in the UAE between May 19 and 24, 16 percent of 18- to 24-year-olds prefer digital wallets, compared to 9 percent of 25-34-year-olds.

“With more individuals embracing the ease of digital wallets, combined with the certainty that their transactions are safe and secure, the digitalisation of the payment system is inevitable,” said Mo Yusuf, Checkout.com’s regional manager for the Mena area and Pakistan.

Increased usage of contactless mobile payments has led to increased use of digital wallets, owing to hygiene concerns about using cash during the pandemic.

According to a 2021 research by UK-based Juniper Research, consumer spending using digital wallets is predicted to hit $10 trillion in 2025, up from $5.5 trillion in 2020.

Users’ credit and/or debit card information is stored in a digital wallet, which is linked to a payment gateway to allow purchases at a point of sale.

Digital wallets, like credit cards, can only be used at businesses that accept them as a payment mechanism.

In a Checkout.com poll, almost 48% of respondents stated that digital wallets might lead to a cashless world in a decade.

According to the study, cash usage in the UAE continues to fall, with only 20% of respondents claiming they utilize cash-on-delivery for online transactions.

The study says, bill payments are the most common reason for UAE residents to use digital wallets, followed by 55 percent who use them to pay for groceries and 28 percent who use them to send money to friends and family.

As per the survey, around 40% of respondents stated they trust digital wallets as much as banks.