In a groundbreaking study conducted by Visa, it has been unveiled that digital payments have become a catalyst for revenue growth and increased foot traffic among retailers in the UAE. With over 70% of surveyed merchants reporting a surge in revenue and customer visits since adopting digital payment methods, the findings underscore the pivotal role of digital transactions in transforming the retail landscape of the country.
The comprehensive study, titled ‘Value of Acceptance’, delves into the attitudes of UAE merchants towards digital payments and evaluates their impact on small businesses and retailers across the nation. It encompasses insights gathered from two distinct groups of merchants: those who have embraced digital payments for 1-4 years, and retailers exclusively dealing in cash transactions.
Key findings from the study indicate that digital payments, alongside cash, constitute approximately 90% of the payments accepted by surveyed small businesses. Of this, digital payments represent the predominant share, reflecting a growing preference among consumers for cashless transactions.
The study further sheds light on the diverse spectrum of merchants involved, including quick service restaurants, small grocery stores, tailors, fashion/apparel outlets, and laundry services. These merchants, ranging from nano to small-sized businesses, underscore the widespread adoption of digital payment technologies across various sectors of the retail industry.
Despite acknowledging the associated costs of digital payment acceptance, an overwhelming 95% of merchants affirm that the benefits derived from digital transactions either match or surpass these costs. Moreover, 68% of retailers express a strong belief in the overall value of embracing digital payment technologies, with a significant majority (63%) expressing their intention to invest in advanced payment solutions in the future.
One of the primary challenges cited by cash-only merchants is the loss of transactions due to customers not carrying physical currency. As a result, nearly 40% of cash-only retailers are contemplating investments in digital payment infrastructure to enhance customer experience and mitigate transactional hurdles associated with cash payments.
Salima Gutieva, Visa’s Vice President and Country Manager for UAE, emphasized the transformative impact of digital payments on the retail sector, aligning with the UAE’s vision of transitioning towards a cashless society. She highlighted the manifold benefits of digital transactions, including enhanced security, speed, convenience, and valuable data insights that can be leveraged to optimize business strategies and improve customer engagement.
Merchants already accepting digital payments anticipate a range of value-added services from their payment providers, including online payment acceptance, secure B2B transactions, targeted marketing initiatives, and mobile payment solutions like Visa’s Tap to Phone technology. Additionally, there is a growing demand for multi-currency processing and robust fraud detection mechanisms to further bolster the efficiency and security of digital transactions.
In conclusion, the Visa study underscores the pivotal role of digital payments in driving revenue growth, enhancing operational efficiency, and fostering customer loyalty among UAE retailers. As the country continues its digital transformation journey, the widespread adoption of digital payment technologies is poised to unlock new avenues of growth and prosperity for businesses across the retail spectrum.
With consumers increasingly gravitating towards cashless transactions, retailers stand to benefit immensely from embracing digital payment solutions, propelling the UAE towards a future where seamless, secure, and efficient digital transactions are the norm.
