Tag: uae

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.

du plans to have consumers pay for their Metro tickets using NFC technology

Commuters in Dubai will soon be using their smart phones to purchase Metro tickers thanks to United Arab Emirates telecommunications giant du. du has seen a great need for more efficiency in Dubai’s public transportation system. As such, the company has announced its partnership with the UAE’s Roads and Transport Authority. Through this partnership, du will work to incorporate NFC technology into the country’s public transportation system, with the foundation of this endeavor being laid in Dubai.

NFC technology could open the way for mobile commerce in Dubai

NFC technology allows for the wireless transmission of data from a mobile device to a stationary system. This technology is most often used in mobile commerce, where it can transform smart phones into mobile payment platforms. This is one of the purposes the technology will serve in du’s initiative. The company plans to work NFC technology into the public Metro system, allowing those with smart phones to purchase tickets.

Lack of NFC-enabled devices could slow progress

The most significant challenge that du will face with its use of NFC technology in Dubai’s public transportation system is the low availability of NFC-enabled devices. Only mobile devices equipped with an NFC chip of some kind can interact with NFC services. Thus, a typical smart phone, such as the iPhone 5, that does not have an NFC chip cannot facilitate mobile transactions. du, as well as other companies in the telecommunications business, is working to solve this problem by introducing new NFC-enabled smart phones to the market. Whether consumers are willing to pay a slightly higher price for these phones just because they have an NFC chip has yet to be seen.

The UAE may be a cashless society in the future

If du’s endeavor with Dubai’s Metro is successful, NFC services are likely to expand throughout the United Arab Emirates. There is talk regarding the country eventually becoming a cashless society, with commerce relying heavily on mobile technology and NFC. In order for this to happen, the UAE must first overcome the significant problems that exist in mobile commerce and NFC technology, such as security, efficiency, and an appropriate infrastructure.