UAE consumers still use cash in these transactions

UAE consumers still use cash in these transactions

While the UAE is at the forefront of digital payments, around 20 per cent of transactions of consumers surveyed is still in cash, a new study has shown.

According to Visa’s ‘Where Cash Hides’ research, in the UAE, peer-to-peer (P2P) transactions (43 per cent) and everyday spending (27 per cent) form a large portion of cash usage

The report — based on a survey of 3,400 of individuals and 30 in-depth interviews across UAE, Kuwait, Oman, Qatar, and Saudi Arabia — included questions about overall frequency of cash usage and specific cases where respondents would use cash more than other payment methods. Based on these results, the report identifies cash-heavy categories and consumer drivers of cash usage and proposes easier, more secure digital payment solutions for both consumers and local businesses.

The report found that consumers prefer using cash in specific transactions, mainly in the P2P segment. Within the P2P segment, tips (55 per cent), money exchanges between friends and family (50 per cent), and international money transfers (40 per cent) are the prime areas of cash usage.

Everyday spend like taxi (46 per cent), farmer markets (44 per cent), and grocery stores (25 per cent) are mostly where cash is used. Other cash-heavy