A latest survey, commissioned by Checkout.com and conducted by YouGov reveals how 16 percent of 18-24 year-olds prefer digital wallets compared to 9 percent amongst the 25-34 age group.
MENA-based payment solutions provider, Checkout.com along with British International research and analytics firm, YouGov reveal how over half the population in the UAE has started using digital wallets. The survey also explains how 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. With 48 percent of respondents of the survey claiming that digital wallets could lead to a cashless society in a decade, it is fair to say that payments are soon going to become cashless.
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.
Commenting on the survey report, 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 to 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.