According to MasterCard’s 2022 New Payments Index, the adoption of a wider range of digital payment methods is accelerating in the UAE, and the country is already witnessing technology trends driving the future of payments.
According to the index, 88% of people in the United Arab Emirates have used at least one new digital payment method in the last year.
Adoption of a broader range of digital payment methods is accelerating in the UAE, with the country already witnessing the trend of technology fuelling the future of payments, according to MasterCard’s New Payments Index 2022.
Aside from the growing awareness of cryptocurrencies, UAE consumers are increasingly and actively using digital cards, biometric payments, BNPL (Buy Now Pay Later) and open banking solutions in their everyday lives.
MasterCard said its largest payments index found that 88 percent of people in the UAE have used at least one emerging payment method in the last year.
Of these, 39 percent used a tappable smartphone mobile wallet, 29 percent used BNPL, 20 percent used cryptocurrency and 18 percent used a payment-enabled wearable tech device.
Consumers are also making purchases in increasingly diverse ways, including through voice assistants and social media apps, according to the Mastercard index.
The index, based on a consumer survey, said while traditional payment methods still have traction, 29 percent UAE consumers indicated they used less cash in the past year.
“By contrast, 66 percent of UAE users – compared to 61 percent globally – increased their use of at least one digital payment method in the last year, the survey revealed.
“These behaviors are expected to continue, with comfort and security key to growing adoption,” it said.
The survey also said security was on top of mind when deciding what payment methods to use – globally and in the UAE – followed by promotions and ease of use.
“It is exciting to see the increased adoption of emerging payment methods and consumers’ eagerness to reap the benefits of the digital economy in the UAE and across the region,” J.K. Khalil, cluster general manager, MENA East, Mastercard, said.
The Mastercard index said broad mainstream awareness of cryptocurrency and NFTs (non-fungible tokens) exist in the UAE market, though depth of understanding about both currencies and the underlying technology is lacking.
The survey also said most consumers are open to direct ‘account-to-account’ payment options, by linking their account to a merchant site for future purchases.
“As high as 83 percent of UAE consumers using account-to-account payments have maintained or increased their usage in the last year,” it said.
The MasterCard index said Gen Z in UAE was least likely to use cash or make in-person purchases and payments, as they are proactively seeking out new payment methods.
“Nearly two-thirds (64%) of Generation Z in the United Arab Emirates are likely to have received new digital payment options such as digital wallets and Click-to-Pay accounts, while Boomers was only 22%.
