More UAE consumers using digital payments, yet 23% of transactions still in cash: Visa’s latest ‘Where Cash Hides’ research 

While the UAE is at the forefront of digital payments, around a quarter (23%) of transactions of consumers surveyed are still in cash, according to the second edition of Visa’s ‘Where Cash Hides’ research.

The research, based on a survey of 2,800 individuals across GCC, examined the overall frequency of and motivations for cash usage. It identifies cash-heavy categories and proposes easier, more secure digital payment solutions for both consumers and local businesses.  The first edition of Visa’s Where Cash Hides was conducted in 2023.

Key survey findings

Cash in specific transactions (by % of consumers surveyed):

In the UAE, P2P transactions (33% vs 43% in 2023) and everyday spending (25% vs 27% in 2023) form the largest portion of cash usage.

• Within the P2P segment, tips (51% down from 55%), and money exchanges between friends and family (39% down from 50%) are the prime areas where surveyed UAE consumers use cash. International transfers through exchange houses (27% vs 40%) and rent (16% vs 25%) saw the most significant declines from 2023, indicating progress in digitizing payments in those categories.

• For everyday spending, 44% of surveyed consumers said they used cash for farmers markets (no change from 2023), followed by offline taxi (32% vs 46%) – which saw the biggest drop from the first wave – and public transport (metro, buses) (27% versus 23%).

Motivators for cash usage (by % of consumers surveyed):

• The top reasons respondents prefer cash for P2P are habit (23%) and acceptance (20%) and, for everyday spends, speed (24%) and acceptance (23%) were cited as the top reasons.

Implications and solutions:

• Efforts to introduce convenient and secure solutions such as Visa Direct (P2P, tips and other disbursements, and remittances), Click to Pay (better online checkout experience), and Tap to Phone (low-cost acceptance solution for SMBs, freelancers and taxi) will further drive digital payments and increase card acceptance in the categories identified.

• Encouraging mobile and contactless payments also presents a pathway to increasing digital payments usage for everyday expenses. This requires education on acceptance and security of digital payments for both banked and unbanked populations.

Salima Gutieva, Visa’s VP and Country Manager for UAE, commented, “Despite progress with digital payment adoption in the UAE, 23% of consumer transactions are still in cash. For Visa, this represents an opportunity to further drive financial inclusion and digitize commerce in the country. Our second edition of Visa’s Where Cash Hides research pinpoints precisely where and how Visa, together with our partners, can help grow the digital economy.  We remain committed to supporting the UAE government’s cashless agenda – such as initiatives like Dubai's Cashless Strategy aiming for 90% digital transactions by 2026 and enabling local businesses in creating a better payment experience for everyone, everywhere in the UAE."

Despite cash usage, the overall reliance on cash continues to remain low. For 61% of respondents, only 1-2 out of their last 10 transactions were in cash. Only 3% of respondents claimed that all 10 out of their last 10 transactions were made with cash.   ​