Skip to content
NEWS RELEASE

Visa: Nearly two-thirds of UAE retailers see increase in foot traffic and revenue since accepting digital payments

  • Since acceptance of digital payments, 63% of the retailers claimed that foot traffic increased; 68% witnessed growth in revenue
  • More than half of the retailers who accept digital payments have a contactless POS machine
  • 46% of cash-only retailers admitted to losing a transaction because of customers not carrying cash
  • Half of UAE’s small cash-only retailers set to invest in new payments technology; more than two-thirds currently accepting digital payments are likely to invest in new payment technologies in the near future


Dubai, United Arab Emirates, 30 June 2019: Visa (NYSE:V), the world leader in digital payments, has revealed the results of an independent merchant study examining perceptions of small UAE retailers on the use and impact of digital payments (card and mobile) on their business. The survey targeted two groups of retailers - those who accept digital payments and those who only accept cash payments.

Perception and impact of digital payments among retailers who accept them

The survey reveals that among small retailers currently accepting digital payment methods, 56% of them have a contactless POS (Point of Sale) machine and 77% of them are inclined to invest in new payment technologies in the near future. 70% of the retailers were satisfied with digital payments driven by two top factors – they prevent fraudulent purchases and offer an easy, convenient way for consumers to pay.

According to the retailers surveyed, digital payments help mitigate challenges related to accepting only cash payments. These cash-associated challenges include (i) possibility of theft from employees; (ii) higher risk of error; and (iii) more complex accounting process. 83% of the retailers who accept digital payments are likely to recommend them to other businesses that currently only accept payments in cash.

When discussing the impact digital payments have had on their business, 63% of the retailers claimed that the traffic in their store increased and 68% claimed their revenue improved since they started accepting digital payments. The overall perception of these retailers is that digital payments are convenient for customers and speed up payment processing and transactions.

Marcello Baricordi, Visa’s General Manager for MENA, commented: “Acceptance of digital payments clearly benefits small retailers as evident by the survey findings. Not only are they more secure, quicker and more convenient than cash, digital payments provide a data trail – something cash doesn’t do - that can help merchants better communicate and target offers to customers and offer loyalty programs, and enhance overall customer experience, to name a few, which help improve profitability.”

Baricordi added: “Considering the UAE’s demographics, a high proportion of consumers are digitally savvy and hence they increasingly expect frictionless and secure payment experiences, which is also something only digital payments can offer. And for a retail business understanding customer experience is everything and the edge they need to be more competitive to generate business.”

Perception of digital payments among retailers who accept only cash payments

Among small retailers who accept only cash payments, 50% of them intend to invest in new payment technologies. 46% of cash-only retailers have admitted to losing a transaction because of customers not carrying cash at the time of purchase. 50% anticipate that the traffic is likely to increase in their store and 46% expect their revenue to increase once they start accepting digital payments.

“In light of the UAE’s goal to become a cashless society by 2020, we want to encourage and support small retailers in every possible way in their migration from cash to digital payments and enable them to deliver the best outcomes for their customers and guarantee continued growth of their business,” concluded Baricordi.

About the Study

Visa commissioned 4SiGHT Research & Analytics to explore the impact of digital payments on small retailers and evaluate the impact of digital payment modes on customer spending habits. 4SiGHT interviewed 208 small retailers in September 2018, out of which 50 accepted cash payments only and 158 accepted digital payments. The surveyed retailers were based in Abu Dhabi, Dubai, and Sharjah. Additionally, 400 users of digital payments were interviewed, out of which 150 were based in Abu Dhabi, 150 in Dubai, and 100 in Sharjah. The interviews took approximately 15 minutes and included a mix of nationalities and gender, representative of the UAE. Each had owned an active payment card, using digital payment methods for over one year.

“AS IS” Disclaimer

Case studies, comparisons, statistics, research and recommendations are provided “AS IS” and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice. Visa Inc. neither makes any warranty or representation as to the completeness or accuracy of the information within this document, nor assumes any liability or responsibility that may result from reliance on such information. The Information contained herein is not intended as investment or legal advice, and readers are encouraged to seek the advice of a competent professional where such advice is required.

About Visa Inc.

Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device, and a driving force behind the dream of a cashless future for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit www.visamiddleeast.com, www.visanewsmena.tumblr.com or follow us on Twitter @Visamiddleeast.

English
Arabic