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30 January, 2021

Discovering UAE Spending Behavior

According to a study, more than 70% of customers favor cashless payment options for most of their monthly spending.

PayBy, an Abu Dhabi-based innovative Fintech enterprise, announced its first study of the UAE consumer payments view, conducted with Kantar. The study was conducted to test UAE consumers’ attitudes towards spending, saving, and the modes of payment during the COVID-19 epidemic.

The PayBy study showed that many number of people with no bank accounts decreased in UAE. While 94% use bank services in some form, this number reduced to 87% among the people with income less than AED 5,000 per month. Based on the PayBy study, most consumers have started to use cashless payments as a hygienic, safe and secure option during the epidemic.

The study also revealed that 72% of the respondents used cashless methods to pay for groceries, 74% for utilities, and 72% for dining out. Although 55% of the respondents paid their rent with cash.

The majority spends of their monthly income were 20% on groceries, 15% on house rent, 11% on utilities, and 9% on dining out.

Over 55% of the respondents became aware of the mobile wallets and started using mobile wallets as a payment method as the mobile wallets were convenient, easy to use, and the money transfer was quick.

The feedback of the respondents on the PayBy app showed that 31% of the respondents admired its contactless payments, another benefit of PayBy was the transfer to peer-to-peer (P2P) to anyone in UAE was free and 47% of the respondents were Indians. For Higher-income groups P2P transfers, PayBy offered microcredit facility from AED 500 to AED 5000.

While UAE aims to become a cashless society, the usage of cash holding it back. The PayBy study showed that half of the respondents always carried cash on them and the advantage of paying in cash was it allowed respondents to bargain.

The PayBy study also shows that the COVID-19 epidemic irreversibly changed the payment aspect in the Middle East. Cash payments have migrated to card payments and mobile wallets. Presently, Digitalization is needed for any type of business to survive, as consumers have started using digital methods for almost everything.

 

Source: dubaichronicle

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