Tips, taxi fare: When do UAE residents mostly use cash?
Visa survey results show that while digital payments grow in the UAE cash still constitutes nearly one-fourth of all transactions.
The research showed that UAE residents think using cash remains the simplest and most accepted payment option for specific situations such as tipping or personal money transfers between relatives which require immediate payment.
The research demonstrated that cash remains the primary payment choice for consumers when purchasing taxis, public transport tickets and shopping at markets.
According to Visa's second research edition ‘Where cash hides’, 24 percent of UAE consumers choose cash for daily transactions because of its speed while 23 percent prefer cash because of widespread acceptance; additionally, 23 percent use peer-to-peer cash transactions due to habit and 20 percent for acceptance.
The research showed a 10 percent to 33 percent reduction in P2P transactions and a 2 percent to 25 percent decrease in daily cash spending when comparing last year to 2023.
The rise of card payments led cash tipping to decrease by 4 per cent to 51 percent while cash exchanges between friends and family decreased to 39 per cent in 2024 from 50 per cent in 2023.
The data shows that digital payment methods made advancements with international exchange house transfers decreasing from 40 percent to 27 percent alongside cash rent payments which fell from 25 percent to 16 percent.
Visa's UAE Vice President and Country Manager Salima Gutieva reported that digital payment methods show growth but cash remains necessary for tipping and short-term money exchanges between friends and family as well as purchases at farmers’ markets and taxi fares.
Cash transactions still occur in certain situations but our 2024 data shows people mainly avoid using cash. According to survey results 61 percent of participants reported that only 1-2 out of their 10 most recent transactions were cash-based while just 3 percent of all survey respondents used cash for their entire last 10 transactions.
Cash will not disappear overnight
The Dubai government aims to achieve 90 per cent digital transaction coverage in the public sector by 2026 to support local enterprises in improving payment systems for all users.
According to Gutieva cash will not vanish immediately although several elements are consistently decreasing its use.
The UAE population's digital proficiency complements the government's strong cashless strategy with ongoing financial innovations from banks and fintechs including Visa.
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