A recent survey conducted by Dubai-based consultancy SixthFactor reveals a significant trend in payment preferences among UAE residents, with 70.7% indicating a growing inclination towards digital wallets such as Apple Pay, Google Pay, and Samsung Wallet over traditional cash or physical cards. This shift in consumer behavior has accelerated notably in recent years, cutting across various demographic segments. However, the data also uncovers a stark divide in adoption rates based on household income and education levels.
The survey, which included responses from 1,050 residents, highlights that individuals from households earning AED 30,000 or more per month are leading the charge in digital payment adoption, with 75.5% expressing a heightened willingness to utilize mobile payment solutions. In contrast, only 59.1% of those from lower-income households earning below AED 10,000 per month report a similar shift, revealing a 16.4 percentage point disparity between the highest and lowest earners.
Education also plays a crucial role in shaping payment preferences, with 66.6% of consumers holding secondary education opting for digital alternatives, a figure that rises to 73.5% among bachelor’s degree holders and peaks at 73.6% for those with postgraduate qualifications. Himanshu Vashishtha, Founder and Global CEO of SixthFactor, emphasized the rapid evolution of payment behaviors in the UAE and noted that the income and education gaps present an opportunity for banks, retailers, and payment providers to tap into underserved segments, which represent the next phase of growth in the digital payments landscape.
The survey, which included responses from 1,050 residents, highlights that individuals from households earning AED 30,000 or more per month are leading the charge in digital payment adoption, with 75.5% expressing a heightened willingness to utilize mobile payment solutions. In contrast, only 59.1% of those from lower-income households earning below AED 10,000 per month report a similar shift, revealing a 16.4 percentage point disparity between the highest and lowest earners.
Education also plays a crucial role in shaping payment preferences, with 66.6% of consumers holding secondary education opting for digital alternatives, a figure that rises to 73.5% among bachelor’s degree holders and peaks at 73.6% for those with postgraduate qualifications. Himanshu Vashishtha, Founder and Global CEO of SixthFactor, emphasized the rapid evolution of payment behaviors in the UAE and noted that the income and education gaps present an opportunity for banks, retailers, and payment providers to tap into underserved segments, which represent the next phase of growth in the digital payments landscape.
Source: Fintech News ME
