Local banks and telecommunications companies are forging ahead with digital wallets even as, according to the UAE Central Bank, the country remains a 75 per cent cash-based economy. But will they be able to replace the nation’s love for cold, hard cash?
Cashless payments have been identified as a top government priority in the UAE’s Vision 2021 and, last year, 38.6 million cashless transaction were made by e-dirham, the UAE Ministry of Finance says.
But how does this relate to our everyday spending: whether we withdraw another hard-to-break Dh500 note from the ATM or, instead, swipe our phone to pay for that meal out?
Despite the focus on cash, the UAE’s young and “digital-minded” population, deep smartphone penetration and government smart economy drive make it a “perfect storm” for increased mobile wallet adoption, says Paul Clarke, head of product and innovation at regional payment solutions provider Network International.
So how do digital wallets work? Read our guide to find out.
What is a digital wallet?
Also known as an electronic, mobile or e-wallet, this is simply an electronic device that allows an individual to make electronic transactions - usually using a smartphone and normally linking either a bank account or credit card to the wallet.
How does it work?
First, the technology: digital wallets generally use ‘near-field communications’ (NFC), a method of wireless data transfer, to allow contactless payments from phones in extremely close proximity - usually a few centimetres. Samsung also uses a patented Magnetic Secure Transmission (MST) to replicate a card swipe by wirelessly transmitted magnetic waves from a Samsung device to a card reader.
To install and use a digital wallet, you will need to download your app of choice from the iTunes or Google Play stores and link it to your credit or debit card - then it is as simple as unlocking the phone and waving it near a merchant’s terminal to make a purchase. Payments below Dh100 do not require a PIN, says Suvo Sarkar, Emirates NBD’s senior executive vice president and group head for retail banking and wealth management - just unlock of phone using a passcode or biometrics such as your fingerprint or iris scan.
What digital wallets can I use in the UAE?
You can use the Emirates NBD Pay or MashreqPay wallets from the local banks, as well as the Etisalat Wallet and the Beam wallet, used by 350,000 people and offering dirham rewards for making mobile payments. The biggest arrival to date is Samsung Pay, which was rolled out in the UAE earlier this year.
Are any other digital wallets on the way?
Apple Pay is due to enter the market by the end of the year, according to Apple’s third-quarter earnings call - the first country in the region. The imminent game-changer is expected to be the Emirates Digital Wallet, a project led by the UAE Banks Federation and with 16 banks involved. The UBF says it will create “a society-wide cash transformation to digital” as part of the country’s digital economy initiative.
Where can I use digital wallets to pay?
You can pay via phone in-store at over half of the country’s 100,000 terminals, says Mr Sarkar of Emirates NBD. Gaurang Shah, Mastercard’s regional digital payments lead, says most grocery stores, coffee shops and fast food restaurants in the UAE accept mobile payments - as well as anywhere in the world supporting NFC. You can even buy phone airtime, pay school fees or buy a ticket to go to the top of the Burj Khalifa using a digital wallet, he says.
Why should I choose a digital wallet over cash?
Cash payments can take “whole minutes” to complete in-store, says Sirish Kumar, chief executive and co-founder of e-payment solution Telr.com, whereas mobile wallet payments are “tap and go”. So your e-wallet could really reduce queuing time; a report by UK supermarket app Ubamarket found that three-quarters of shoppers abandoned their shopping and left a store rather than wait to check out. It also makes for a “seamless experience” across loyalty cards, vouchers and delivery from online purchases, he says.
What’s in it for merchants?
There is a reduced cost of handling cash, says Mr Kumar, and improved customer experience and dwell time at check-out - plus it is easier to track the customer experience across all channels. For governments, too, there are tangible benefits: improved financial accessibility and fiscal oversight of the economy.
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Read more:
Mobile wallets are a great business opportunity for GCC banks
Trial run in UAE for Samsun Pay mobile payments
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How do I choose a digital wallet?
Not all wallets are “created equal”, says Hadi Raad, Visa’s head of digital solutions for central and eastern Europe, Middle East and Africa. “A lot of them are ‘closed loop’, which means they do not interact with other payment systems and thus limit the functionality of the wallet,” he says.
Phone wallets have a “head start”, says Mr Kumar of Telr.com, as they are directly integrated with the phone’s features such as biometric authentication. But they are not available to customers of all local banks nor accepted universally by retailers, he warns. This means the onus is on the customer to find a wallet that supports their bank account.
What else can a digital wallet do?
Rakbank has just enabled card-less ATM cash withdrawals via Samsung Pay. Mobile wallets like the Apple Wallet app can also hold electronic event tickets, flight boarding passes, electronic gift cards and loyalty cards.
How do I know a digital wallet payment is secure?
Payments ‘tokenise’ transactions in any wallet, meaning the transaction is given a unique digital identifier instead of the card number being passed on, ensuring personal details are never shared and preventing cards from being skimmed. A stolen token cannot be used from another device or in any way except that supported by the digital wallet, says Mr Shah of Mastercard. Only the payment network and your bank will have information about the transaction, adds Mohammad Gharaibeh, head of IT and mobiles (B2B) division at Samsung Gulf Electronics. As well as tokenisation, he says Samsung constantly monitors suspicious activity within the device to prevent malicious attacks.
But is using my phone really safer than cash?
Mr Kumar of Telr.com says safety and security are “never guaranteed” - but if your wallet is stolen, it’s gone. Mobile wallets offer “considerably more protection” than cash, he says, as your phone can be remotely locked or wiped and linked cards blocked.
Where are the most cashless countries?
The UAE (along with India, Saudi Arabia, Egypt, Kenya and Nigeria) is one of the most cash-based societies in the world, according to 2013 Mastercard research; the most cashless countries were Belgium, France, Canada, the UK and Sweden, making 89 to 93 per cent of their transactions cashless. But Mr Kumar of Telr.com says that by “not rushing headlong” into mobile wallets, the UAE has learned from the experiences of countries like India, where the initial “rapid explosion” resulted in a “fragmented landscape” and is now going through a consolidation period.
What other digital wallets are available overseas?
Google Wallet is available in the US and UK, while the PayPal app can be used as a mobile wallet in-store by showing a QR code to the merchant, also partnering with Visa, Mastercard, Apple Pay, Samsung Pay and Google’s Android Pay. Android Pay itself is available in select countries, including the US, Canada and UK. Skrill, Square Cash and Venmo are other digital wallets gaining traction, particularly for international money transfers. In-app payments can even be made via Facebook Messenger and China’s WeChat.
Will e-money ever replace cash?
UK supermarket the Co-operative predicts that 65 per cent of all transactions will be made by mobile phone by 2025, making bank cards and cash as obsolete as cheque books. “It’s only a matter of time before customers and retailers recognise the value and convenience of switching to digital payments,” says Mr Clarke of Network International.
Mastercard views “cash displacement” as a mission, says Mr Shah of Mastercard, which has seen a 300 per cent increase in contactless usage in the UAE this year. Mr Kumar of Telr.com says people are still “wedded” to cash; while it will stay with us in the short term, there is now choice for the consumer, rather than an obligation to use cash, he says. “The next step is to make cashless transactions not just an option, but a preference.”
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
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The specs
Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now
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Five famous companies founded by teens
There are numerous success stories of teen businesses that were created in college dorm rooms and other modest circumstances. Below are some of the most recognisable names in the industry:
- Facebook: Mark Zuckerberg and his friends started Facebook when he was a 19-year-old Harvard undergraduate.
- Dell: When Michael Dell was an undergraduate student at Texas University in 1984, he started upgrading computers for profit. He starting working full-time on his business when he was 19. Eventually, his company became the Dell Computer Corporation and then Dell Inc.
- Subway: Fred DeLuca opened the first Subway restaurant when he was 17. In 1965, Mr DeLuca needed extra money for college, so he decided to open his own business. Peter Buck, a family friend, lent him $1,000 and together, they opened Pete’s Super Submarines. A few years later, the company was rebranded and called Subway.
- Mashable: In 2005, Pete Cashmore created Mashable in Scotland when he was a teenager. The site was then a technology blog. Over the next few decades, Mr Cashmore has turned Mashable into a global media company.
- Oculus VR: Palmer Luckey founded Oculus VR in June 2012, when he was 19. In August that year, Oculus launched its Kickstarter campaign and raised more than $1 million in three days. Facebook bought Oculus for $2 billion two years later.
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
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The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Company%20profile
%3Cp%3ECompany%20name%3A%20Shipsy%3Cbr%3EYear%20of%20inception%3A%202015%3Cbr%3EFounders%3A%20Soham%20Chokshi%2C%20Dhruv%20Agrawal%2C%20Harsh%20Kumar%20and%20Himanshu%20Gupta%3Cbr%3EBased%3A%20India%2C%20UAE%20and%20Indonesia%3Cbr%3ESector%3A%20logistics%3Cbr%3ESize%3A%20more%20than%20350%20employees%3Cbr%3EFunding%20received%20so%20far%3A%20%2431%20million%20in%20series%20A%20and%20B%20rounds%3Cbr%3EInvestors%3A%20Info%20Edge%2C%20Sequoia%20Capital%E2%80%99s%20Surge%2C%20A91%20Partners%20and%20Z3%20Partners%3C%2Fp%3E%0A
hall of shame
SUNDERLAND 2002-03
No one has ended a Premier League season quite like Sunderland. They lost each of their final 15 games, taking no points after January. They ended up with 19 in total, sacking managers Peter Reid and Howard Wilkinson and losing 3-1 to Charlton when they scored three own goals in eight minutes.
SUNDERLAND 2005-06
Until Derby came along, Sunderland’s total of 15 points was the Premier League’s record low. They made it until May and their final home game before winning at the Stadium of Light while they lost a joint record 29 of their 38 league games.
HUDDERSFIELD 2018-19
Joined Derby as the only team to be relegated in March. No striker scored until January, while only two players got more assists than goalkeeper Jonas Lossl. The mid-season appointment Jan Siewert was to end his time as Huddersfield manager with a 5.3 per cent win rate.
ASTON VILLA 2015-16
Perhaps the most inexplicably bad season, considering they signed Idrissa Gueye and Adama Traore and still only got 17 points. Villa won their first league game, but none of the next 19. They ended an abominable campaign by taking one point from the last 39 available.
FULHAM 2018-19
Terrible in different ways. Fulham’s total of 26 points is not among the lowest ever but they contrived to get relegated after spending over £100 million (Dh457m) in the transfer market. Much of it went on defenders but they only kept two clean sheets in their first 33 games.
LA LIGA: Sporting Gijon, 13 points in 1997-98.
BUNDESLIGA: Tasmania Berlin, 10 points in 1965-66
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
APPLE IPAD MINI (A17 PRO)
Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits
Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine
Storage: 128/256/512GB
Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4
Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps
Biometrics: Touch ID, Face ID
Colours: Blue, purple, space grey, starlight
In the box: iPad mini, USB-C cable, 20W USB-C power adapter
Price: From Dh2,099
Quick%20facts
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BEETLEJUICE BEETLEJUICE
Starring: Winona Ryder, Michael Keaton, Jenny Ortega
Director: Tim Burton
Rating: 3/5
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
WITHIN%20SAND
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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
Iftar programme at the Sheikh Mohammed Centre for Cultural Understanding
Established in 1998, the Sheikh Mohammed Centre for Cultural Understanding was created with a vision to teach residents about the traditions and customs of the UAE. Its motto is ‘open doors, open minds’. All year-round, visitors can sign up for a traditional Emirati breakfast, lunch or dinner meal, as well as a range of walking tours, including ones to sites such as the Jumeirah Mosque or Al Fahidi Historical Neighbourhood.
Every year during Ramadan, an iftar programme is rolled out. This allows guests to break their fast with the centre’s presenters, visit a nearby mosque and observe their guides while they pray. These events last for about two hours and are open to the public, or can be booked for a private event.
Until the end of Ramadan, the iftar events take place from 7pm until 9pm, from Saturday to Thursday. Advanced booking is required.
For more details, email openminds@cultures.ae or visit www.cultures.ae
UAE currency: the story behind the money in your pockets
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
WE%20NO%20LONGER%20PREFER%20MOUNTAINS
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Inas%20Halabi%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3ENijmeh%20Hamdan%2C%20Kamal%20Kayouf%2C%20Sheikh%20Najib%20Alou%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
Without Remorse
Directed by: Stefano Sollima
Starring: Michael B Jordan
4/5
The Rub of Time: Bellow, Nabokov, Hitchens, Travolta, Trump and Other Pieces 1986-2016
Martin Amis,
Jonathan Cape
The Specs:
The Specs:
Engine: 2.9-litre, V6 twin-turbo
Transmission: 8-speed automatic
Power: 444bhp
Torque: 600Nm
Price: AED 356,580 incl VAT
On sale: now.
Duterte Harry: Fire and Fury in the Philippines
Jonathan Miller, Scribe Publications
Joy%20Ride%20
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Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
The specs: 2018 Range Rover Velar R-Dynamic HSE
Price, base / as tested: Dh263,235 / Dh420,000
Engine: 3.0-litre supercharged V6
Power 375hp @ 6,500rpm
Torque: 450Nm @ 3,500rpm
Transmission: Eight-speed automatic
Fuel consumption, combined: 9.4L / 100kms
Star%20Wars%3A%20Ahsoka%20
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Various%20%3Cbr%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Rosario%20Dawson%2C%20Natasha%20Liu%20Bordizzo%2C%20Lars%20Mikkelsen%20%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%0D%3Cbr%3E%3C%2Fp%3E%0A
The%20Continental%3A%20From%20the%20World%20of%20John%20Wick%20
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UAE currency: the story behind the money in your pockets
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
