Dubai Police, Dubai Economy (DED) Visa released findings of a survey on the impact of COVID-19 pandemic on payment behavior of consumers in the UAE. The survey looks at consumers’ general views, preferences and concerns related to digital payments and offers key insights for merchants. The survey release corresponds with the launch of Visa’s fifth annual ‘Stay Secure’, to promote safe digital payment practices. The Stay Secure webpage has tips and educational videos and information on security features of digital payments.
COVID-19: Impact on Consumer Shopping and Payment Behavior: 68% of respondents surveyed in the UAE reduced shopping in-store since the outbreak of the pandemic & 49% are shopping online more. When shopping at stores, 71% are using digital payments over cash with the majority using contactless cards (54%) and mobile wallets (46%) more. For respondents shopping more online, the majority (61%) use cards or digital wallets more to pay online over COD. Increased trust in the security of the payment technology, speed, convenience and limited human contact, were the top reasons cited for their increased preference for digital payments.
“Fraudsters are seeking to take advantage of people spending more time online, preying on their fears and anxieties and exploiting new systems of remote working. Government authorities, private sector and the local community all have an important part to play to ensure we are all protected. Dubai Police is very pleased to partner with Visa and Dubai Economy on this Stay Secure initiative, which not only helps amplify our efforts towards reducing fraud and cybercrime in the UAE but also echoes our recent National Fraud Awareness campaign to address this threat,” noted Jamal Salem Al Jalaf, Director of Criminal Investigation Department in Dubai Police.
These shifts in consumer behavior are expected to be the ‘New Normal’ as more consumers gain confidence in digital payments. 43% of consumers surveyed believe they will continue to use contactless payments more in-store post the pandemic and 48% said they will continue to opt more for paying online with card or digital wallet over COD.
Ahmad Al Zaabi, Director of Consumer Protection in the Commercial Compliance & Consumer Protection (CCCP) sector, Dubai Economy said, “The study shows that consumer behavior changes due to the pandemic such as shifting online and increasing use of digital payments, are likely to continue even after the pandemic, an important take away for businesses developing strategies for the post COVID-19 consumer and market overall. Dubai Economy has been promoting online shopping and contactless payments not only to ensure safe shopping during the COVID-19 crisis but also as part of our larger goal of accelerating the digital transformation of economic activity, particularly retailing, in Dubai. With malls and commercial outlets already reopened in Dubai contactless payment promises to add to the safety, convenience and overall consumer experience of shopping in the city.”
Data Privacy, Biometrics and Mobile Wallets: Up to 53% of respondents were comfortable sharing personal data with banks, telecom operators and government owned entities. 63% find biometrics secure and for 55% biometrics is convenient to use. 60% trust paying with mobile wallets.
Neil Fernandes, Visa’s Head of Risk for Middle East and North Africa commented, “The pandemic has changed how consumers shop and pay with increased reliance on and preference for digital commerce. With increased usage both among experienced and first time users, cybercriminals too are keen to capitalize on the increased activity and vulnerability, especially of first time online shoppers. That is why educating consumers about safe payment behavior is critical not only for the moment but as we move forward and adapt to the new normal.”
Interestingly, the findings also revealed significant differences in the behaviors of Gen Z (18-22 years) compared to the general population. For example, less than half (49%) of Gen Z respondents find biometrics secure compared to 70% of the rest. With regards to tokenization technology, less than half of Gen Z consumers (48%) believe it improves mobile wallet security compared to 61% of non-Gen Z consumers. With Gen Z entering the job market and their purchasing power expected to increase in the future, insights into their views and behavior are useful for businesses looking to cultivate long term relationships with them.
Enhancing Online UX and Reducing Cart Abandonment: More than half (58%) of UAE consumers surveyed have abandoned their online shopping cart because of authentication delays or failure. Of those who abandoned their carts, 62% try again, 35% purchased from other sites, 34% purchased from a nearby store and 32% dropped the idea of purchasing the product altogether.
Merchants seeking to deliver an enhanced online experience for customers can now adopt Visa Secure (previously known as Verified by Visa. It uses the latest EMV 3-D Secure (3DS)(3DS) specification, which leverages fraud detection intelligence to verify cardholder identity and block unauthorized transactions.
