By Rafiq Vayani
DUBAI: The UAE’s transition towards a cashless economy is supported by strong consumer confidence in digital payments, with younger generations showing a greater tendency to carry little or no physical cash, according to new research commissioned by Revolut, the global financial leader with 80 million customers.
The YouGov study of more than 1,000 UAE residents found that younger consumers are at the forefront of changing payment habits, with the majority of 18–24 year olds typically carrying AED 50 or less, including those who carry no cash at all. Around 73% of the same age group also noted that their cash usage has remained low or decreased during the last 12 months. The findings highlight how younger generations are increasingly comfortable navigating everyday life with minimal physical cash, in line with the UAE’s wider ambitions to build a more digitally connected economy.
Why do they want to carry little cash? The research also highlights some of the everyday inconveniences consumers associate with accessing physical cash. More than a third (35%) identify inconvenient ATM locations as a pain point when withdrawing cash, while 33% cite waiting times or queues.
It comes as the study reveals that 92% of respondents trust digital payments, highlighting a strong foundation for the country’s continued transition towards a more digital payments ecosystem. However, while trust in digital payments exists, the research also highlights opportunities to address gaps in existing payment services.
Around 40% of respondents reported withdrawing cash to send money locally or internationally to avoid higher remittance fees, pointing to continued demand for more accessible, cost-effective digital money transfer solutions. Further reflecting that demand, the study reveals that nearly a third (32%) of respondents who use cash say they continue to do so because merchants or individuals only accept cash payments.
The research also found that 73% of respondents have been unable to complete a purchase at least once because they were not carrying cash, further highlighting the importance of expanding digital payment acceptance across everyday transactions.
Taken together, the findings suggest that the next stage of the UAE’s cashless journey will be shaped by closing the remaining gaps in digital payment availability, enabling consumers to transact digitally across more aspects of everyday life.
Ambareen Musa, CEO of GCC at Revolut, said: “The UAE has established itself as a global leader in digital innovation, and we’re seeing that reflected in how people manage and spend their money. Younger consumers in particular are increasingly comfortable carrying little or no cash, while trust in digital payments is already high.
“As the UAE advances its cashless ambitions, there is a clear opportunity to make digital payments even more seamless across everyday life. At Revolut, we share that ambition to make managing and moving money simpler, faster and more convenient.”
As consumer behaviours continue to evolve, the findings highlight the opportunity for digital financial services to complement the UAE’s ambitions for a modern, connected and increasingly cashless economy.
For Revolut, the shift is closely aligned with its approach to financial services: using technology to remove friction from everyday financial activity and give customers simpler, more intuitive ways to manage, spend and move their money.
rafiq@biztoday.news
