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28 April, 2022

UAE is Active in Digital Payment Innovation

A comprehensive financial framework, robust digital infrastructure, and high smartphone penetration have encouraged a wider adoption of digital payments technologies across the UAE, said Sean Wang, founder and CTO of PayBy.

 

The UAE’s digital economy, in line with global trends, is booming as non-cash transactions via credit and debits cards and e-wallets grow, he explained. A study by Visa revealed that over 90 per cent of UAE consumers planned to use digital payments as much or more in the future.

 

Fintechs are playing a key role in enabling this shift with more secure, convenient, and inclusive payment solutions. As a key fintech player in the market, Wang noted that PayBy is witnessing a wider adoption of mobile wallets to carry out everyday transactions such as mobile phone top-ups, utility bill payments, taxi fare payments, grocery shopping, and peer to peer transfers.

 

Wang also pointed out that the Covid-19 pandemic was a big boost for digital payments globally, as well as in the UAE. Mastercard reported over a billion more contactless transactions worldwide during the pandemic period compared to pre-pandemic times. A survey by Mastercard in 2021 also revealed that over 90 per cent of UAE consumers were likely to consider using new payment methods.

 

“This shows that there is a growing interest in emerging digital payments technologies,” he said. Many small and medium businesses are considering transitioning to digital payments for a more seamless checkout experience. Interestingly, the UAE’s unbanked sector, which accounts for over 30 per cent of the country’s working population, is migrating to digital payments, giving the entire ecosystem a further boost. This is a positive step because cash payments are not convenient, safe and hygienic, and traditional bank card payments are not 100 per cent secure either.”

 

According to a study conducted by Visa in 2021, 19 per cent of UAE consumers had experienced credit card fraud. In instances where criminals make fraudulent purchases using a stolen card, chargebacks or cardholder disputes based on charges on their cards, can become difficult for merchants to prove. Furthermore, when transferring money using debit cards, users need to enter the beneficiaries’ card information, which can be cumbersome; beneficiaries also can’t receive the money immediately.

 

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Source : khaleejtimes

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