UAE ‘most developed’ in ME in payment practice

RITIKA SHARMA / Emirates Business

Taking strides towards a knowledge-based economy, UAE has set an example in finance technology (FinTech). Experts claim that the pace at which UAE is embracing latest technology in financial sector, it is already the ‘most developed’ nation in the Middle East
in terms of global shift in payment methods.
Factors such as high smartphone penetration and a young populace are contributing to a rise of digital and mobile services in UAE and this is increasingly applying to the payment industry, leaders opine.
Ozgur Ozvardar, Vice President and General Manager, Verifone Middle East and North Africa (MENA) told Emirates Business in an exclusive interview, “We see a bright future for the industry, and especially in the UAE, a country that is leading the charge in the GCC in terms of cashless payment options, with myriad food and beverage outlets and start-ups offering consumers the option to either pay directly through websites or apps, or with card on delivery.”
Mentioning about the role of a customer in this transition, Ozvardar said, “Essentially, it is up to the consumers to set the pace for mobile and digital payments, as they have to feel comfortable with the options offered, whether they are card-on-delivery or face-to-face mobile payments.”
“E-commerce and digital payments are growing by double digits in the region, and that while Europe is still ahead in terms of adoption of cashless payments, we have seen that once a market starts growing, it tends to grow very quickly. UAE is on right track and is leading by example,” he added.
The UAE government is working towards creating smart cities, and with an effective infrastructure for payments, the nation makes transition to cashless payments easier than some other mature markets.
Rahim Faizullah, financial advisor with a private wealth management firm in Dubai, told Emirates Business, “There are a lot of factors that are helping UAE in its march towards a cashless economy. The best is being done by the government. However we must not forget that there are nations that are moving much rapidly towards cashless society than us (UAE).”
“This transition is not easy because there are still a lot of people who don’t feel secure in cashless transactions. It is therefore duty of financial institutions that with every upgrade in technology, a solution to the security problems is found,” he added.