Digital Economy: UAE consumers to pivot away from cash – report

Digital Economy: UAE consumers to pivot away from cash – report

Between 20-30 per cent of the surge in e-commerce activity propelled by the Covid-19 pandemic is here to stay, and will find a permanent slot in overall retail spending a recent study has revealed.

The Mastercard Economics Institute has released its Economy 2021 - a global outlook report that offers an insight into the economic impact of Covid-19 including potentially permanent changes in digital consumer spending habits, growth of online banking, fintech disruption and opportunities to boost financial inclusion.

Key trends

A sharp shift to digital platform use, propelled by changed consumer behaviour, mobility restrictions and the need of business revenues beyond brick-and-mortar locations are identified as the key trends in the MEA region. The shift in e-commerce was also highlighted in a recent Mastercard e-commerce study, which revealed that 73 per cent of consumers in the UAE, as well as in the wider MEA region, were shopping more online than they did before the pandemic.

The continuing trend away from cash is also expected to be more persistent in economies such as the UAE, which operates a robust e-commerce infrastructure and a young, technically-savvy consumer base. Additionally, adoption by older generations, greater convenience and lower costs will contribute to the continued growth of