5 Key Factors Driving Online Payments in UAE
The recent surge in global online payments has been pretty evident across the world and the growth has been driven by stupendous growth in e-commerce transactions done in the Middle East. In fact, in one of our earlier posts, when we clearly stated that as per Capgemini’s World Payments Report 2017, the global growth in non-cash transactions has been driven by CEMEA (Central Europe, Middle East and Africa) & Emerging Asia, with UAE paying a leading role as the biggest contributor to growth in e-commerce and online payments.
The following 5 factors are driving the growth of online payments in UAE:
Increased Card Penetration:
The number of cards being used for any transaction has in fact risen to 10% of all transactions in the UAE and most of the transactions are being done online.
Growing Tourism:
UAE attracts a whole host of tourists and they always tend to pay online for most of their services like hotel booking and air ticketing.
Large upwardly mobile expat population:
The UAE has long been a global melting pot which is a testimony to the large expat population who are more tech savvy and purchase online.
Macro-economic scenarios:
The flattening of oil prices has meant that the country is diversifying its economy and focusing more on new age sectors such as e-commerce which has been aided by robust internet and smartphone penetration in the country.
Demographic Dividend:
The UAE has a relatively young population. Roughly about 24% of its 9 million+ population are below 24 years of age. Therefore it comes as no surprise that significant population in the UAE transact and pay online and pay online.
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