From queues to clicks: Why expats in UAE are turning to digital remittances

Dubai: Every month, thousands of expatriates living in the UAE send money home: to support aging parents, pay for a sibling’s education, or cover medical bills back in their home countries. For many, these transfers aren’t just financial — they’re lifelines.

Yet for years, that lifeline came with invisible friction: long queues at exchange houses, opaque fees, and exchange rates that favoured the remittance provider more than the sender or receiver.

Now, thanks to a wave of digital upgrades, that reality is changing — fast.

Surge in app-based transfers

Recent surveys and reports show that expats in the UAE are increasingly ditching physical branches and cash-based services in favour of app-based remittance options. Nearly two in three residents now opting for mobile and digital platforms for cross‑border transfers.

In a similar vein, 57% of UAE residents — according to a Visa‑commissioned survey — now favour digital apps for sending money abroad. The top drivers: ease, speed, safety, and transparency.

In a landscape where outward personal remittances reached Dh183 billion in 2024, the stakes are huge. Digital services are no longer niche — they are shaping the future of how money moves across borders.

Digital often means cheaper

Let’s emphasize: In most cases, digital remittance services provide significantly better value than traditional banks or physical operators. The savings come from two core areas:

1. Lower transaction fees

• Lean operations: Digital fintechs don’t run large branch networks or armored cash logistics; their costs are lower, and those savings can be passed on to users.

• Fewer intermediaries: Traditional SWIFT or correspondent bank transfers often route through multiple middlemen, each charging a cut. Digital networks are more direct, cutting down on hidden “middleman fees.”

2. More better exchange rates

• Closer to the mid‑market rate: Unlike many banks that embed a hidden markup in the exchange rate, digital remittance firms often show the real (mid‑market) rate plus a transparent margin.

• Rate transparency: Many digital platforms let you see exactly what your recipient will get before you hit “send.” No nasty surprises at the other end.

E-remittances in action

Not long ago, many UAE residents regularly queued at money transfer offices, often paying around $7 in fees just to send money home. That’s now changing. With the rise of digital remittance apps, transfers can be made instantly — and at little to no cost — straight from a phone, with no need to visit a branch.

This shift has been especially impactful for those who typically send small amounts each month. For them, every UAE dirham matters. Traditional bank fees and hidden exchange rate markups can quietly eat into the amount their families receive. Digital remittance services help reduce those losses, making sure more of their hard-earned money reaches the people who need it most.

How UAE is enabling shift

The move from cash to digital isn’t just about user preference — policy is playing a role too:

• The UAE has been cracking down on illegal money networks. Authorities are enforcing registration and regulation to ensure remittance flows go through formal, transparent channels.

• Some physical exchange houses have increased their fees (e.g. a 15% hike in remittance fees) — pushing more customers toward digital alternatives.

• Exchange houses and consulates are co-locating digital kiosks so expats can check exchange rates, track transfers, and use digital tools even when physically visiting embassies.

• Many UAE-based fintechs are expanding remittance corridors, offering services to over 170+ countries with low or zero transfer fees.

• These moves — regulatory, infrastructural, and competitive — make it easier and safer for expats to adopt digital options without sacrificing reliability.

Why digital just makes sense

For many UAE expats, sending money home isn’t a one-off task — it’s a monthly routine, a responsibility. And in that routine, the differences between traditional remittance methods and digital platforms are impossible to ignore.

What once took several days can now be done in minutes. Digital remittance services dramatically reduce transfer times, often completing transactions within 24 hours or less. Gone are the delays caused by intermediary banks, manual processing, or limited banking hours.

Transparency is another game-changer. Most digital platforms clearly show the exchange rate, transfer fee, and the exact amount the recipient will receive — before you hit send. Compare that to traditional providers, where hidden markups and bundled fees often leave senders guessing.

But perhaps the biggest shift is in convenience. With just a few taps on a phone, users can send money anytime, anywhere — whether during a lunch break, late at night, or while commuting. There’s no need to visit a branch, wait in line, or adjust your schedule. Real-time tracking, digital receipts, and instant notifications are now standard features.

For today’s expat, especially when money is urgently needed for things like medical bills or school fees, these differences matter. Digital remittances don’t just save time and money — they offer a faster, more transparent, and far more user-friendly experience.

What to check before you send

Digital doesn’t always mean flawless. Here’s what to watch out for:

• Hidden markups or extra fees: Even fintechs may embed a margin, so always compare the “you send → they receive” numbers.

• Regulation and licensing: Use platforms regulated in UAE or the recipient country — so your funds are protected.

• Volatility: Some expats experiment with crypto- or blockchain‑based remittances for very low fees. That can work, but exposes the sender or receiver to exchange rate volatility and regulatory uncertainty.

• Recipient infrastructure: If the receiver country has limited banking or digital coverage, it may be harder to cash out.

• Scams and phony apps: As with all finance tech, verify you’re dealing with trusted providers.

Expats win with digital remittances

For millions of expatriates in the UAE, remittances are not optional — they are essential. The shift to digital is more than convenience; it is about keeping more money in the hands of both the sender and receiver.

Lower fees, closer-to-fair exchange rates, speed, transparency, and regulation are converging to create a better alternative. For expats managing tight budgets or caring for loved ones far away, those margins matter more than ever.