UAE residents find cash still has its uses - tipping for one
From tipping to even jewellery purchases, cash still has a role, says Visa study
Dubai: Does anyone in the UAE still use cash? Even as digital ways proliferate, cash is still fit for purpose, according to a new Visa survey.
Need to tip? Take out the cash.
Pay off a taxi ride? Cash is handy.
Even bigger ticket transactions such as jewellery purchases or apparel still has UAE shoppers using cash.
The ‘perception of convenience (64 per cent finding favour) was cited as the top reason’ for using cash, according to Visa, while other reasons include ‘perception of control and safety’ (39 per cent), and being easier when availing cash discounts (32 per cent) and acceptance (29 per cent).
“There remains categories of spend where consumers in the UAE still use cash,” said Salima Gutieva, Visa’s VP and Country Manager for UAE. “This presents an opportunity to extend the many benefits of digital payments to more consumers and businesses for a more inclusive digital economy.”
Cash comes in handy
According to the poll, peer-to-peer transactions (43 per cent) and everyday spending needs (27 per cent) form a large portion of cash usage among UAE consumers.
Within P2P transactions, tips (55 per cent), money exchanges between friends and family (50 per cent), and international money transfers (40 per cent) are the prime areas of cash usage.
Everyday spending like taxi rides (46 per cent), farmer/grocer markets (44 per cent), and grocery stores (25 per cent) are mostly where cash is used. Other cash-heavy areas include events (23 per cent), healthcare and beauty (23 per cent), education (23 per cent) and apparel and jewellery (21 per cent).
According to the Visa survey respondents, around 20 per cent of their transactions are still in cash.