UAE may lead the way in mobile commerce adoption
When it comes to mobile commerce in the Middle East, the United Arab Emirates is leading the way in terms of adoption. Consumers throughout the country are becoming more aware of mobile payments and how they work, with this awareness being spurred on by retailers and financial organizations involving themselves more in the mobile space. While most of the Middle East region remains cash-based, with approximately 10% of all payments being made electronically, the United Arab Emirates is expected to play a major role in the growth of mobile commerce throughout the region.
MasterCard study shows that UAE is heading toward a cashless society
MasterCard recently released a study that suggests that the United Arab Emirates is moving toward a cashless society faster than any other country in the Middle East. Non-cash transactions in the country currently account for 26% of consumer payments by value. High smartphone penetration is cited for the growth in mobile commerce, but government initiatives are playing a role in promoting growth as well.
Government initiatives help promote mobile spending
The country’s government has taken a keen interest in mobile commerce, believing that the mobile sector can lead to higher degrees of social and economic growth. The United Arab Emirates Ministry of Labor’s Wages Protection System allows workers to receive their salaries through prepaid cards and bank accounts that can be accessed by mobile devices. The UAE Bank Federation has also launched a new initiative called Mobile Wallet, which aims to make finances more mobile-centric than they had been in the past.
Security is becoming a priority for many consumers
Large-scale mobile payment solutions are being prepared for launch in the United Arab Emirates and the rest of the Middle East. As these solutions are introduced to the public, mobile commerce activity is expected to pick up tremendously. If these solutions do not offer adequate security features, however, they may be shunned by many consumers. Many people are becoming more aware of the threats that exist in the mobile space and are demanding that new services ensure the security of their financial information.