Are Digital Payments Apps the Next Big Thing in the UAE?
Digital payments have initiated a huge buzz in the market especially after the outbreak of the pandemic. Even though cash is a main type of transaction in regions like UAE, the latest trends show that there is an urge among customers and retailers to adopt digital payments. Governments in UAE are showing special interest in giving their residents digital payments and promoting the idea of going cashless by 2030 with their revolutions in the fintech segment.
About payments in UAE and the recent developments:
The payments in the complete Middle East are highly adapted to the dependency on cash. Even though Dubai is considered a technological hub, cash is having a strong impact on the region due to several years of usage. Once considered as tough to deviate from this traditional setting, slowly and steadily the environment is evolving to promote digital payments in the region. The promotion by respective governments has led to the interest among consumers and retailers in the entire region. The outbreak of the Covid-19 pandemic made every segment in the region realize the importance of digital payments. Several cash-dependent countries across the region have shown interest and trying steps to convert to digital payments. With the new trend on the rise, there are clear signs that it is going to change the system forever.
Several studies have shown that a significant portion of customers in the UAE have trust in digital payments due to their benefits. It includes the pace of payments, easy accessibility, security, and majorly it’s an advanced model of leveraging the technology. Several customers who were reluctant to use this mode of payments have understood the usability and secured mode of completing the transaction. Due to this, it is predicted that this wave is going to get bigger and cover most parts of the region sooner. This gives a boost to the findings from several studies that hint at the unimaginable growth of digital payments in the UAE.
The trend of digital payments cannot be successful only if the customers accept them. They are also beneficial to the retailers and preferably they are highly interested in adopting this mode of payments for long-term usage. But how can this mode of payment imply for the retailers? With the evolving of latest trends, there is a change in the requirement where consumers want the retailers to change to this mode impacting the complete system. Different types of retailers are always looking to give the best customer experience for retaining the loyal base and attract their known ones into the business. Looking at the influence of digital payments, it is believed that UAE will go to achieve the goal of being cashless by 2030.
Benefits of digital payments in UAE:
Traditional payments like cheques or cash are nowhere near the speed of digital payments with the added advantage of performing the transaction from any place or time. This lets the users not worry about accomplishing the payment across any part of the world. With the emergence of digital payments, there will not be the need for any physical visits to the bank infrequent times. There will not be any hassle of waiting in queues in the banks or any other places, just use the app on the smartphone and complete the transaction.
Reorganizing the complete payment process of your business:
With no gap between the delivery and actual transaction, the entire process will be completed in no time. Hence, even the retailers will not have to wait for the payments to be completed. It lets you get a more streamlined view of the profits as you can control to get a centralized manner of your payment.
Increase the efforts in referral marketing:
Various types of businesses will be opened for referral marketing developing an enhanced revenue figure. Moreover, customers can be more loyal to your brand as you can provide various offers to the customers while performing digital payments. It is found to be a new and impactful way of pushing the consumers to promote business with your brand. If they see a favourable response from your business then it is seen across the globe, that they will find comfort in sticking to your brand for longer.
The traditional model of cash payments always has the risk of manual errors or thefts. Hence, people have realized that the digital mode of payment is not only fast and easy but also the safest mode of payment. This is true in the case of retailers which includes multiple transactions in a day. With the inclusion of various secure methods like encryption, tokenization, SSL, etc you will have different methods of securing the payments. Further, ways like OTP (One Time Password) avoids tedious methods like entering the card details again and again.
Negate processing costs:
There will be a need to use a processing service in the traditional mode of online payments like a card which requires a sum to be paid in the form of a processing fee. This is not a small amount and recurring payments will hugely hit your budget. But digital payment avoids this problem and only involves paying a fixed payment to the service provider.
How payment is done has been changed across the globe with the convenience offered by digital payments. As both consumers and retailers have understood the usability of these methods in the UAE, this trend shows no signs of slowing down in the coming days. With governments pushing for a cashless system by 2030, digital apps are going to rise like never before across the UAE and regions of the Middle East. This enhances the importance for business owners to invest in developing secure and exciting digital payment products. It is possible by associating with leading mobile app development company in Dubai UAE like Brillmindz. They have a team that has been developing profitable digital products leveraging their decade of fruitful experience in the niche.