The alternative way to pay

Ritika Sharma / Emirates Business

Banking apps and mobile wallets will soon surpass the traditional payment methods in the UAE as more and more customers seek comfort in cashless payment systems. A vast appetite for technological advancements in the payments industry is helping in making the country one of the leading countries in the world, when it comes to embracing newest technology in payment and finance sector.
According to a recent YouGov survey, 77 percent of citizens across the Gulf Cooperation Council (GCC) nations said that they would opt for alternatives payment methods if possible. The YouGov survey was commissioned by Cards & Payments Middle East, the recently-held conference and exhibition for payment solutions in Dubai.
Anand Suhaab, senior analyst at ZCB financial solutions, told Emirates Business, “It might take a little longer but the pace with which UAE has been embracing technological upgrades in various industries, we are almost sure that online transactions will become the most popular payment mode among masses in the next five years.”
“In the UAE, various industries and government agencies are taking steps towards making online mode of payment a reality. The foremost duty of market leaders should remain to create a secure technology that is easy to use at the customers’ end. If the customers find it cumbersome to use any technology especially when it is about payments involving their hard-earned money, they will shy away from it.”
One of the major concerns in this transition from traditional payment methods to the digital remains that of security. Experts believe authorities will have to work towards ensuring secure systems that are capable of foreseeing the possibility of cyber-attacks in advance without losing out on money and confidential personal information of customers.
Suvo Sarkar, Senior Executive Vice President and Group Head – Retail Banking and Wealth Management at Emirates NBD, said, “With banks strongly reinforcing the security aspects of alternative transactions through systems such as chip and pin cards and two factor, we find customers more willing to adopt digital payment methods. For the first time this year, we have seen our branch transactions showing a declining trend, and a multi-fold increase in the electronic and card transactions.”
Reports confirm that UAE is clear-cut leading the phenomenon of adopting alternative payment methods in the GCC region.
According to the YouGov survey, government identity cards (12 percent) and banking apps (17 percent) were among the top choices in the alternative payment methods, along with mobile wallets (9 percent), indicating towards a fast-emerging desire among customers to be less reliant on traditional ways while making payments.