Cash is losing popularity in the UAE as consumers switch to digital payments. 

With the growth of debit cards, electronic transfers, and mobile payments, the use of cash has long been declining in the legal economy, especially for medium and large-size transactions

Credit cards were the most popular way to pay for e-commerce transactions last year, according to the FIS Global Payments Report 2023.

Credit cards accounted for 41% of transaction value, and debit cards represented 11%. With point-of-sale (POS), credit cards were responsible for 40% of transaction value, with debit cards taking the 17% share. 

Wallets are gaining prominence, too – as the UAE’s second-leading payment method behind credit cards, representing 24% of transaction value in 2022, up from 23% in 2021. It’s growing faster at POS – from a 13% share in 2021 to a 16% share in 2022.

“Consumers in the UAE can choose from among the world’s biggest wallet brands, such as Alipay, Apple Pay, Google Wallet, Samsung Wallet, and WeChat Pay, as well as domestic wallets like Careem Pay, e& money [Etisalat Wallet] and Payit,” the report said.

It also noted that Buy Now, Pay Later (BNPL) solutions are the fastest-growing e-commerce payment method in the UAE, with a projected growth of 37% through 2026. Local BNPL players Cashew, PostPay, Spotii, and Tabby compete with regional providers like Saudi Arabia’s Tamara.