Sending Support: 57% of UAE expatriates rely on apps for remittances

By Gloria Methri

• 57% of surveyed remittance users across the UAE prefer to use digital apps to send money abroad
• The top benefits of sending or receiving international payments digitally are ease of use, privacy/security, and convenience for friends and family
• 56% of surveyed remittance users in the UAE expect to use digital money transfers more often in the future

In a noteworthy shift, 57% of surveyed remittance users in the UAE now prefer digital applications for sending money abroad, according to Visa’s latest report, “Money Travels: 2024 Digital Remittances Adoption.” This trend underscores a significant transformation in how expatriates manage financial support for their families amid evolving global dynamics.

A New Era of Remittances

As economic challenges persist worldwide, the reliance on digital remittances has soared. The report reveals that 56% of UAE remittance users anticipate using digital money transfers even more frequently in the future. This growing preference for technology highlights an apparent demand for efficient, secure, and user-friendly solutions in a landscape where timely support is crucial.

“Security, ease and speed are the top priorities for expatriates in the UAE when sending money abroad to support families back home or aid people in crisis,” said Salima Gutieva, Visa’s VP and Country Manager for the UAE.

These attributes are driving the rapid adoption of digital payment methods, allowing expatriates to provide immediate assistance to their families while navigating the complexities of cross-border transactions.

Benefits Beyond Convenience

The benefits of digital remittances extend far beyond mere convenience. Many users cite the ability to make life easier for loved ones as a primary motivator for adopting digital methods. The quick and straightforward nature of these transactions alleviates the stress of sending funds during emergencies—be it for unexpected medical bills, educational expenses, or urgent support for those affected by crises.

Despite the advantages, the report also highlights persistent challenges, including high fees and complex exchange rates. Nearly 38% of remittance senders in the UAE expressed concerns over these issues, indicating that while digital options are favoured, there remains a need for improvements in transparency and cost-effectiveness.

Supporting Families and Communities

In addition to family support, the report emphasises the role of remittances in addressing broader global issues. Many expatriates feel a sense of responsibility to aid those in need, reinforcing the idea that remittances are not just financial transactions but vital lifelines during times of crisis.

Visa’s partnerships with remittance service providers like Western Union and Remitly aim to enhance the efficiency of digital transfers, ensuring that users can send money seamlessly and securely. Innovations such as the Visa Direct Alias Directory are also set to simplify the process,