Dubai, UAE – More than 70% of surveyed retailers in the UAE have experienced increased revenue and higher customer footfall since adopting digital payments, a study conducted by Visa in the United Arab Emirates (UAE), titled ‘Value of Acceptance’ has revealed.
The study focused on two groups of merchants – those accepting digital payments for 1-4 years and those exclusively dealing in cash transactions.
The survey encompassed various business types, including quick-service restaurants, small grocery stores, tailors, fashion/apparel stores, and laundries, across different business sizes. Among the card-accepting merchants, both digital payments and cash together accounted for 90% of payments, with digital payments holding the larger share.
The study highlights the key role of digital payments in driving the growth of small businesses, with 68% of surveyed merchants asserting that accepting digital payments is an essential investment contributing significantly to business growth. Also, 67% of these merchants noted that a majority of their customers prefer paying via card or mobile phone.
Despite acknowledging associated costs, 95% of digital payment-accepting merchants believe that the value and benefits derived from digital payment acceptance are on par with or exceed the associated costs. A significant 68% of these retailers express a strong intention to invest in new payment technologies in the future.
Cash-only merchants, constituting 40% of those surveyed, are recognizing the limitations of their payment method. More than 25% of them have lost transactions because customers did not have cash. Consequently, almost 40% of these cash-only merchants plan to invest in digital payment technology soon to offer consumers a more convenient payment experience.
“As the UAE forges ahead with its ambitious digital commerce agenda, our ‘Value of Acceptance’ study underscores the transformative power of digital payments for the retail sector,” Salima Gutieva, Visa’s VP and Country Manager for UAE, said. “Embracing digital transactions not only aligns with the UAE’s cashless society ambitions but also unlocks significant growth potential for small businesses as well as for the wider economy.”
Gutieva added: “Beyond the benefits of security, speed, and convenience, digital payments also provide invaluable data insights. With more consumers turning to digital payments, this data can assist merchants in tailoring communication, targeting offers more effectively, implementing loyalty programs, and enhancing the overall customer experience, among other advantages. These aspects are instrumental in boosting business profitability and efficiency.”
Retailers already accepting digital payments expressed expectations from their providers, including online payment acceptance, more secure B2B payments, better communication of unique offers and loyalty programs, and mobile payment acceptance solutions like Visa’s Tap to Phone. Merchants highlighted areas where payment providers could further add value, such as multi-currency processing and fraud detection and prevention.