Same Like many Businesses in UAE probably you rely in cash payments. But you may have heard the whispers, World is changing , Business is Changing, Time is Changing Obviously Payment Modes too.
When Business world is changing you should adapt and customize your business accordingly. If you are not accepting Cashless payments You are closing door of your business to a Changing world.
Why Cashless Payments is matters for your business , How Worth it is?
- Increase millennial market share
- Exploit a major opportunity gap
- Boost customer loyalty and value
- Streamline accounting
Grow sales amongst the UAE’s power demographic
Millennials make up the majority of the Middle East’s consumer base, and most of them are becoming company decision makers and owners. The Middle East has the highest proportion of millennial entrepreneurs in the world.
These people are high spenders than global peers. Especially in high value Industry like Travel, Tourism, Automobile Etc.
Which means businesses in the UAE cannot afford to ignore millennials and their spending power.
This is a highly tech-savvy generation who have little patience with slow, frustrating and outdated practices.
- Almost 100% of millennials across MENA use mobile
- 43% of Saudi Arabian millennials will leave a site if it’s not mobile-optimised
Cash payments fall into that category.
- In 2017, UAE consumers spent USD59bn using credit, debit or prepaid cards
- That’s 45% of all UAE retail sales
- Consumer card payments grew by 7% during 2017
- In 2017, UAE consumers spent USD40bn using cash
- That’s only a third of all UAE retail sales
- Consumer cash payments declined by 3%
- By 2020, paper money will represent only 28% of UAE retail sales.
Cashless Payments Like Card payment, Apple Pay, Samsung Pay, Ali Pay, Google Pay are must-do to stay competitive, especially amongst the millennial consumer base.
But don’t think going cashless needn’t be a huge change, even if your predominant payment method is cash-on-delivery. You could keep the same business model but bring a credit card machine when you deliver. By doing this you are providing an additional value for customers. This will encourage them to prefer your company over your competitors.
Going Cashless is Process Don’t think it’s an Overnight transformation.
Take advantage of the e-commerce opportunity gap
Although going cashless doesn’t have to be a huge change, there’s considerable competitive advantage if you embrace cashless fully. We’re talking about e-commerce.
- The GCC e-commerce market is expected to reach US20bn by 2020
- That’s a 277% increase since 2015
Especially amongst the millennial demographic, e-commerce is HUGE.
- 76% of millennials across the Middle East shop online
- 55% of millennials across the Middle East pay bills online
And as yet, businesses in the UAE haven’t caught up. Like, a major online fashion retailer admitted:
- In the US and Europe, 15% of their payments are e-commerce
- In the UAE, 70% of their payments are cash-on-delivery – only 1% are e-commerce
These all metrics are the strong indications of Cash only businesses eventually left behind the market.
Millennial customers in the GCC are massive spenders and also incredibly loyal. Most loyal customers in the world see the figures down-
- 43% of UAE millennials and 33% of Saudi Arabian millennials only consider one brand when buying flights.
That’s compared to:
- 28% of US millennials
- 21% of Japanese millennials
- 18% of UK millennials
- 9% of Australian millennials
So when you earn this millennial customer base you can keep this segment for future business. So you have to provide them higher values.
The millennial customers are moving fast with technology and changes. So if you want to keep them for a long time you have to offer them modern payment modes like Credit card Payments, Contactless Payments, Apple Pay, Samsung Pay, AliPay Etc.