While almost four in 10 UAE consumers have experienced online fraud attempts in the past year, trust and usage of digital payments both in-store and online see no signs of ceasing as consumers still prefer them over cash, citing improved technology, and security measures as reasons why they still feel more secure with these methods of payment. These findings were revealed in the 2021 Stay Secure survey launched today by Visa, Dubai Police, and Dubai Economy (DED).

Cash is unlikely to return to its previous high level of use

According to the study, the use of cash in the UAE continues to decline. While eCommerce and contactless payments have increased in popularity and use since the start of the pandemic, paying by Cash on Delivery (COD) has declined significantly (75%), while the use of digital payments (contactless cards + mobile wallets) for payment online or on delivery has almost doubled (by an average of 98%). Consumer feedback reinforces the belief that there is no reversal of this trend, with 40% of consumers saying they are less likely to use COD and 45% are more likely to use contactless payment methods in the future.

Trust driving consumer preference in contactless and digital payments, but some concerns remain  

Nearly two-thirds of consumers (63%) have high level of confidence in digital payments (contactless cards and mobile wallets) for shopping in-store and payment on delivery, an increase since the start of the pandemic. Top reasons consumers gave for their trust in contactless include convenience (60%), speed (59%), control (the card or mobile never leaves consumer’s hand during transaction) (46%), avoiding human touch (56%) and innovative way to pay (48%).

Biometrically-verified payments – such as mobile wallets – also scored high with consumers with more than a third (67%) saying it is secure, and 60% saying it gives them complete control as it never leaves their hand in a transaction and eliminates the hassle of having to remember passwords.

Knowledge of the technology that protects digital payments is a driver of consumer trust. Among consumers who trust digital payments, a majority (52%) said having knowledge of underlying security technologies that protect digital payments, such as tokenization, helps build their confidence in cashless options. Those who do not have adequate levels of knowledge of the technology, still have lagging doubts about the safety of digital payments. For example, 47% fear misuse of lost or stolen contactless cards mostly due to a lack of understanding of how the technology work (27%). These findings reinforce the importance of continual education on safe digital payment practices among consumers to maintain their trust.

Consumers’ experience with fraud

The survey also sheds light on consumers’ experiences with fraud, with 39% of UAE consumers surveyed admitting they have experienced an online fraud attempt. Around a quarter of consumers (27%) have experienced phishing, while just under a fifth have experienced credit card fraud (19%) and receiving counterfeit goods (17%). In the event of fraud, informing the bank (67%) or customer service (58%) and changing their password/PIN (72%) are the most important actions consumers are likely to take. As a testament to the trust consumers have in local law enforcement, half of UAE consumers said they would contact the authorities in the event of fraud.

Brigadier Jamal Salem Al Jalaf, Director of Criminal Investigation Department in Dubai Police, said, “As people spend more and more time online – including many for the first time, fraudsters are using this as an opportunity to exploit consumers’ fears and lack of knowledge. We strongly believe that government authorities, the private sector and local communities all have an important role to play in raising awareness among UAE residents. Dubai Police is delighted to once again partner with Visa and Dubai Economy on the Stay Secure initiative, which will help strengthen our efforts to reduce online fraud and cybercrime in the UAE and ensure a safe and secure digital economy for everyone.”

Ahmad Al Zaabi, Director of Consumer Protection in Dubai Economy, said: “Shopping in Dubai presents a remarkable opportunity for retail innovations as it involves a vast and varied customer demographics and businesses. At Dubai Economy we focus on making shopping in the city a pleasant experience and we have leveraged every opportunity, including the increase in online shopping in the aftermath of COVID-19, to encourage consumers to enjoy the benefits of cashless and contactless shopping. The partnership with Visa enables us to track consumer behaviour and we are delighted to see confidence in digital payments rising steadily, which in turn will accelerate the ongoing digital transformation in Dubai.”

Neil Fernandes, Visa’s Head of Risk for Middle East and North Africa, commented, “As our survey results indicate, consumers have fully embraced digital payments in the COVID-19 era but that does not come without risks. As consumers shift online, fraudsters have sought opportunities to exploit these changes in how people pay for goods and services. This is why constant consumer education is so much more important than ever before. The fact that 1 in 2 consumers surveyed would contact law enforcement in the event of fraud is a credit to the diligent efforts of our partners Dubai Police and Dubai Economy, who are committed to keeping consumers safe and empowering them to use digital payments and online channels with confidence. However, as an industry we cannot afford to let our guard down. Our ongoing Stay Secure campaign is our effort in bringing together all participants in the payments ecosystem to work together to advance efforts to educate consumers on how to stay vigilant, identify potential fraud, and what actions they should take if they are affected.”

The survey corresponds with the launch of Visa’s sixth annual “Stay Secure” social media campaign on Facebook and Instagram (@VisaMiddleEast, @DubaiPolice @DubaiDED) in partnership with Dubai Police and DED. The campaign reinforces safe digital payment practices and reminds consumers on how they can protect personal data even as they enjoy the benefits and convenience of eCommerce and contactless payments.  The UAE Stay Secure webpage also includes fraud prevention tips for consumers and information on security features of digital payments.