Why Digital Payments Are a Must for New Businesses in the UAE


When you’re setting up a new business in the UAE, digital payments are a must. This is the land of convenience, and the market has come to expect options for tapping or app-ing to pay for their goods and services. Carrying cash or stashing it at home has become a practice of the past.


As a business owner, this is great news. It means payments can be processed faster and more securely, accounting becomes simplified and the burden of counting and carrying cash is shifted from employees on the frontline. Read on for more reasons why digital payments are a must for businesses in the UAE.


Speeding towards a cashless economy


The UAE ranks as the eighth most cashless society in the world. Approximately 83 percent of people living in the country own a debit card, and there are four major e-wallet providers in operation. The COVID-19 pandemic certainly accelerated the move towards digital payments and e-wallets, however, the majority of people living in the Gulf state are tech-savvy and businesses have adapted to meet the demand for digital payment methods.


Convenience is #1


The UAE population is spoiled when it comes to convenience. At almost any hour of the day, a person can have fuel delivered to their car for the same price they’d find at the pump, have a freshly baked slice of cheesecake delivered to their door, and indulge in a manicure/pedicure from the comfort of their own couch. Rummaging around for a dirham bill doesn’t quite fit the picture. Digital payments are essential in ensuring a smooth experience for the customer from start to finish and goes a long way in securing repeat business.


Hygiene habits


After the rigorous hand-washing and sanitizing of 2020, elements of the COVID-19 related hygiene habits that became ingrained into daily life continue to linger. The majority of businesses converted to digital payment methods during the pandemic to reduce the risk of spreading the coronavirus, and have remained cashless since that time. In fact, YouGov data shows that consumers in the UAE are more likely to opt for digital payment methods than cash when given the option.


Reducing administration and overheads


Including digital payments in your business model just makes good sense. Customer service is faster and easier for both the merchant and the consumer, there’s less room for human error when payments are made as the onus isn’t on your employee to count out the change, and your business will attract the technologically advanced customer-base that accounts for almost the entire UAE population.


Less risk


Paper money is a lot more difficult to trace than a transaction made with the tap of a card, or via an e-wallet. Human error when accepting cash can add up over time, and having employees handling cash puts them in a position of responsibility, where theft or loss might occur if they are traveling around the city carrying out deliveries or services.