Register now: GN webinar to debate the future of cash in the UAE

Customers in the UAE and surrounding region have traditionally been resistant to online payment systems. ‘Cash is king’ has been the mantra for traders.

When online shopping began rising in popularity, a large proportion of regional consumers stuck to more traditional methods rather than taking the leap, says Mosam Gadia, Senior Vice President Finance and Digital Payments, Noon.

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“Using cash-on-delivery helped to accelerate wider adoption of e-commerce in the region, giving consumers a way to easily transition from brick and mortar to online,” says Gadia.

But the pandemic has accelerated our move to a cashless way of life in unexpected ways.

Visa’s ‘Covid-19 Impact Tracker’ research puts this into stark relief. It found that 80 per cent of consumers in the UAE changed their shopping behaviours and close to half said they intend to continue the new habits even after government restrictions were fully relaxed.

Consumers won’t forget their new-found trust in electronic payments, nor can they unlearn the realisation that because coins and banknotes are passed through many hands, they pose particular challenges to protecting against a pathogen that can be transmitted through surface contact.

Mosam Gadia says moving towards a cashless society is an exciting step, not one to be daunted by.

“Driving towards a cashless society is not only beneficial for our larger economic good, it also helps businesses to be more efficient,” says Gadia.

Retailers may not have a choice whether to adapt, or not, such is the pace of consumer change.

Kartik Taneja, Head of Payments at Mashreq Bank, says COVID-19 may have instigated a big societal shift from cash to digital.

“While the jury is out on which form factor will survive in the 10-year horizon, it’s clear that card contactless seems to be the clear preference of consumers across markets,” says Taneja.

The Visa ‘Covid-19 Impact Study’ showed that cash-only merchants were the most negatively impacted during the crisis.

But many are pivoting and reacting decisively, according to Shahebaz Khan, UAE General Manager of Visa.

“Nearly 41 per cent of businesses in the UAE intend to invest in new digital payment technologies in the near future, which strongly indicates that digital transformation is already in progress and will continue to build momentum in the near future,” says Khan.

Mashreq Bank sees a cashless future that doesn’t sacrifice consumer protection or peace-of-mind.

“I have no doubt that we may move to a non-card based biometric payment system in the future once we overcome the issues of privacy and acceptance,” says Taneja.

Mosam Gadia agrees that there are many benefits of a cashless society.

“As well as limiting crime, and theft in businesses, it helps to create a more seamless experience for consumers and a safer one for delivery associates,” says Gadia.

Shahebaz Khan highlights the role that cashless payments could play in aiding economic recovery through increased efficiency.

“They enable the secure and fast movement of money, drive financial inclusion and empower businesses with access to data and insights on evolving consumer behaviour for better decision-making,” says Khan.

Gulf News will discuss these issues in our latest webinar

Join panelists from Mashreq Bank, Visa and Noon as we discuss how the pandemic has propelled the shift towards electronic transactions like no single event in history.

These payments industry experts will discuss:

Register to be part of this exclusive discussion on Tuesday 28 July at 10:45am and put your questions to these industry leaders:

Reserve your place in this exclusive webinar now.