Trust in digital payments among UAE consumers surges amid COVID-19

By Edil Corneille

Dubai Police, Dubai Economy (DED) and Visa released findings of a survey on the impact of COVID-19 pandemic on the payment behaviour of consumers in the UAE. The adoption of digital payments is considered to be the new normal now as consumers have gained confidence in the payment systems. Visa’s fifth annual ‘Stay Secure’ initiative was launched this year in partnership with both Dubai Police and DED to promote safe digital payment practices.

Brigadier Jamal Salem Al Jalaf, Director of Criminal Investigation Department in Dubai Police stated, “…Dubai Police is very pleased to partner with Visa and Dubai Economy on this Stay Secure initiative, which not only helps amplify our efforts towards reducing fraud and cybercrime in the UAE but also echoes our recent National Fraud Awareness campaign to address this threat.”

43 per cent of consumers surveyed believe they will continue to use more of contactless payments in-store even post the pandemic. 48 per cent revealed that they will continue to opt more for paying online with a card or digital wallet over cash on delivery (COD).

Ahmad Al Zaabi, Director of Consumer Protection in the Commercial Compliance & Consumer Protection (CCCP) sector, Dubai Economy mentioned, “…Dubai Economy has been promoting online shopping and contactless payments not only to ensure safe shopping during the COVID-19 crisis but also as part of our larger goal of accelerating the digital transformation of economic activity, particularly retailing, in Dubai…”

71 per cent of the respondents of the survey are using digital payments over cash with the majority using contactless cards (54 per cent) and mobile wallets (46 per cent). 68 per cent of the respondents in the UAE have reduced shopping in-store since the outbreak of the pandemic and 49 per cent are shopping online more. For respondents shopping more online, the majority (61 per cent) use cards or digital wallets more to pay online over COD.

Neil Fernandes, Visa’s Head of Risk for Middle East and North Africa said, “The pandemic has changed how consumers shop and pay with increased reliance on and preference for digital commerce. With increased usage both among experienced and first-time users, cybercriminals too are keen to capitalize on the increased activity and vulnerability, especially of first-time online shoppers…”

The findings revealed significant differences in the behaviours of the Gen Z demographic compared to the general population. Less than half (49 per cent) of Gen Z respondents find biometrics secure compared to 70 per cent of the rest. With Gen Z entering the job market and their purchasing power expected to increase in the future, insights into their views and behaviour are useful for businesses looking to cultivate long-term relationships with them.