More than half of all UAE residents currently use digital wallets, according to a survey by payment solutions provider Checkout.com.
Young shoppers are the most frequent users of digital wallets. Around 16% of young people aged 18 to 24 prefer digital wallets, while people aged 25 to 34 are only 9% among digital wallet users.
The rise in popularity of contactless mobile payments is linked to the Covid-19 pandemic, when people started taking precautions and started using digital wallets.
As for the future of digital wallets, about 48% of respondents believe that digital wallets could lead to cashless payments.
"As more and more people enjoy the convenience of digital wallets coupled with the confidence that their transactions are safe and secure, digitalisation of the payment system is unstoppable," said Mo Yusuf, regional manager of Checkout.com in Mena and Pakistan.
According to the survey, the use of cash in the UAE continues to decline. 20% of respondents said they use the cash-on-delivery option for online purchases.
Among the uses of digital wallets, respondents highlighted: paying bills (58% of respondents), paying for food (55%) and sending funds to friends and relatives (28%).
It is worth noting that about 40% of respondents also said that they trust digital wallets as much as they trust banks.
A total of 1,008 respondents from the UAE took part in the survey between 19 and 24 May.