The United Arab Emirates is experiencing a rapid shift towards digital payment methods, with a notable decline in the use of cash for everyday transactions.
A report titled “Where Cash Hides,” published by Visa, revealed that 68% of consumers now primarily rely on non-cash payment options, marking a 7% increase from the previous year.
According to the report, the utilization of physical currency has decreased even in routine purchases, with only 16% of individuals depending on cash, down from 25% the year before. This decline is particularly evident in sectors that have traditionally favored cash, such as local markets, taxi services, and bill payments.
Debit cards and mobile payments have taken the lead in daily spending across grocery shopping, dining, and transportation, whereas credit cards continue to dominate planned purchases. In person-to-person transactions, tipping remains a notable exception, with 58% of consumers opting to pay in cash.