U.A.E.’s Youth Set Sight On Contactless Payments

Middle Eastern countries are historically known to have a strong preference for cash and coin payments, but it seems younger generations in the U.A.E. are eager to transition to a tap and go payment culture.

Global digital security provider, Gemalto, recently published the results of a street survey held in Dubai that revealed U.A.E. residents’ had an ardent desire to adopt contactless technology payments with banking cards and mobile phones, reports Trade Arabia.

Here is what the survey revealed about the future of contactless payments in the U.A.E.

Dubai Craves Contactless Cards

An overwhelming 80 percent of respondents reported that they would either ‘like’ or ‘love’ for their banks to offer a contactless banking card option for regular use. The survey indicated the top reasons for supporting contactless cards are because consumers believe they are quick, innovative and convenient. People who participated in the survey expressed they liked the modernity of NFC technology.

Eighty-six percent of the respondents said they would like to see a leapfrog concept in contactless technology–meaning they would be able to use the card in multiple scenarios. Consumers would like to use contactless cards to ride public transportation or to make quick payments in retail stores.

Younger Generation Eager For Change

Interestingly the survey has also suggested the strongest appetite for contactless payments lies within the youth—those aged 18-24 years old. Most of these younger participants did not own bank accounts, approximately 57 percent, but admitted they would easily take on contactless banking cards when the time came. Financial institutions in the Middle East may find these statistics particularly useful when creating future strategies to attract new customers in the future to register for mainstream banking.

The survey also indicated that the majority of residents using the Dubai metro system occupy the18-24 age group, with a reported 73 percent. The notion that the youth represents the highest interest in contactless payments as well as the most frequent transit commuters is important for bankers to understand.

The Era Of Mobile NFC

Along with a fascination with contactless cards, U.A.E. respondents reported to be equally interested in using mobile phones to complete transactions. Eighty-five percent of individuals said they would either ‘like’ or ‘love’ to use their mobile phone to make a payment. Using mobile phones to make payments in local shops and vending machines ranked the highest, however they also expressed they would like to see NFC technology incorporated into eLoyalty programs, vouchers and access to events such as music concerts or sporting events.

Respondents showed little fear of the futuristic technology as 72 percent stated they saw no obstacle in using mobile NFC, and only 5 percent reported concern. There are still those living in the dark while the survey reported that 16 percent had never heard of NFC payments or contactless cards.

To read the full article at Trade Arabia click here, or to read the full story at Total Payments click here.

For more information on the survey check out the inforgraphic below