Do you have a digital wallet? Should you have one? Contactless payments, online shopping, the rise of e-commerce are some of the factors that have shaped the evolution of the digital wallet which offers multiple options to purchase goods and services facilitating lifestyle and improving the consumer experience.

The digital wallet is a financial transaction application that runs on mobile devices. It securely stores your payment information and passwords. These apps let you pay when you shop using your device so you don’t have to carry your cards. According to Investopedia, you enter and store your credit card, debit card, or bank account information and can then use your device to pay for your purchases.

A new survey by leading payment solutions provider Mena, Checkout.com, has revealed that more than half of the population in the UAE are using digital wallets for the first time. The survey reveals that security remains the most important factor for UAE residents when shopping online – with nearly 40% of respondents trusting digital wallets as much as banks. Indeed, the future bodes well for digital wallets, with 48% of respondents believing that digital wallets could lead to a cashless society within a decade.

Mo Ali Yusuf, Regional Director for the MENAP region at Checkout.com, said, “With more and more people embracing the convenience of digital wallets coupled with the assurance that their transactions are safe and secure, digitization of the payment is unstoppable. The results reveal an undeniable trend of digital wallets becoming the future of consumer payments. »

The survey aimed to uncover the growth of digital wallet usage among UAE residents as online payments increase. The Checkout.com MENAP 2021 Payments Report found that around 83% of UAE residents would maintain or even increase their current level of e-commerce spending through 2022.

The survey of over 1,000 consumers in the UAE found that cash usage continues to decline, with only 20% of respondents saying they use COD (cash on delivery) for online purchases. That compares to 40% in 2020, according to Checkout.com’s MENAP 2021 report.

Growth in digital wallet usage among UAE residents was driven by ease of paying bills, with 58% of respondents ranking it as the number one item they use their digital wallet for making payments, followed by closely by groceries (55 percent). The report also reveals that 28% of UAE residents use wallets to send funds to friends and family, showing the popularity of peer-to-peer transactions over traditional bank-to-bank transfers. Digital wallets are also set to disrupt the multi-billion dollar remittance market in the Gulf, with a third of UAE residents saying they use digital wallets to send funds abroad. The pandemic has put the spotlight on payments and digital payments in particular. Indeed, payments are now widely recognized as a key part of the consumer journey to purchase, and business leaders increasingly understand that payments have a role to play from “pre-purchase to post-purchase” ( especially in e-commerce channels).

“With the pandemic and its aftershocks taking effect, cash will continue to move. I think affordability will remain key, especially with the rising cost of living, which means the need for credit and managing cash flow will remain a priority. I expect credit card spending to make a comeback (it was replaced by debit spending at the height of the pandemic) and BNPL to increase its share of spending (although some players may be squeezed out of the market as funding of venture capital is starting to dry up for companies that aren’t making money and don’t have a clear path to profitability Contactless will continue to be a mega trend as wallet adoption grows will develop and that biometrics will increasingly become a form factor among consumers,” said payments industry expert Arjun Singh.

“From a retailer perspective, unified commerce will start to become a reality which will have exciting implications for payments. A number of platform-based players will launch their own wallets and potentially even consider white labeling BNPL. Finally, B2B payments are the next wave of innovation. It is really necessary and it has started.

The Checkout.com report found little difference in online shopping habits between men and women, demonstrating that digitization is appealing to all genders. However, there is a broader appeal for digital wallets among younger buyers. The results highlight that 16% of 18-24 year olds prefer digital wallets, compared to 9% among 25-34 year olds.

Dubai-based Richa Patil, Founder and Managing Director of MetaDecrypt -Blockchain Tech and Consulting, which is dedicated to the development, adoption and amplification of digital wallets, said: “The UAE will see huge demand development of digital wallets as cryptocurrency becomes accepted as a primary payment option. Digital assets will increase demand from the retail industry as consumers shop with varied payment options resulting in more innovative payment solutions. » —

Copyright © 2022 Khaleej Times. All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).