A recent study by Visa, a global leader in digital payments, revealed a significant positive impact of digital payment adoption on small and medium-sized enterprises (SMEs) in the United Arab Emirates (UAE). The study, titled "Value of Acceptance," surveyed merchants across the country and found that over 70% of those accepting digital payments reported an increase in both revenue and customer traffic.
The findings highlight the growing preference for cashless transactions among UAE consumers and the potential benefits for businesses that embrace this trend. According to the study, 68% of surveyed merchants accepting digital payments viewed it as an essential investment contributing to their business growth. Additionally, 67% reported that a majority of their customers prefer to pay using cards or mobile wallets.
This shift towards digital payments aligns with the UAE's vision of becoming a cashless society. The government has actively promoted initiatives to encourage the use of digital financial services, recognizing the potential for economic growth and financial inclusion.
The Visa study delves deeper into the specific advantages experienced by merchants who accept digital payments. One key benefit is the increase in customer footfall. The study revealed that 63% of surveyed merchants witnessed a rise in customer traffic after adopting digital payments. This can be attributed to the convenience and ease associated with cashless transactions, potentially attracting new customers who prefer not to carry cash.
Furthermore, the study found that 68% of merchants accepting digital payments reported an increase in revenue. This growth can be attributed to several factors, including the elimination of the risk of counterfeit cash and the potential for attracting customers who might have otherwise been limited by the amount of cash they carry. Additionally, digital payments offer valuable data insights into customer behavior, allowing merchants to personalize marketing strategies and improve overall customer experience.
The study also highlights the positive outlook of merchants towards digital payment solutions. Among those surveyed, 77% of merchants currently accepting digital payments expressed their intention to invest in new payment technologies in the near future. This indicates a growing confidence in the benefits of digital payments and a willingness to embrace further innovation in the financial landscape.
The findings of the Visa study offer valuable insights into the growing importance of digital payments in the UAE. By embracing this trend, businesses can not only cater to the evolving preferences of their customers but also unlock new opportunities for growth and contribute to the nation's vision of a cashless society.