Technology

Consumers in the UAE are embracing invisible payments, digital wallets, and AI-driven shopping experiences at a rapid pace, but trust and security remain the defining factors shaping the future of digital commerce, according to a new report by Checkout.com.

The company’s latest study, MENA Digital Commerce 2026: The New Era of AI in Payments, revealed that while the UAE is increasingly prepared for agentic commerce and AI-assisted shopping, payment security continues to be the foundation of consumer confidence.

According to the report, 52 per cent of UAE consumers shop online at least once a week, while 67 per cent expect to increase their online shopping activity over the next year. At the same time, 96 per cent of respondents said they value “invisible” payments that allow transactions to occur seamlessly without manual entry of credentials or page redirects.

However, the research found that convenience alone is not enough to win consumer loyalty. Around 63 per cent of UAE shoppers identified safe and secure payment experiences as the most important factor when shopping online.

Remo Giovanni Abbondandolo, General Manager for MENA at Checkout.com, said consumer expectations in the UAE are evolving alongside the country’s rapidly advancing digital economy.

“Today’s shoppers expect payments to be fast, intuitive, and invisible, but they are equally clear that trust and security cannot be compromised,” he said.

The report showed that digital wallets are becoming central to financial activity in the UAE, with 67 per cent of consumers using them monthly for purchases, budgeting, and financial management, while 71 per cent use them for money transfers.

This growing adoption is also reflected in Checkout.com’s regional growth, with the company reporting a 62 per cent year-on-year increase in total payment processing volume across the MENA region.

Despite strong demand for frictionless payments, consumers remain highly sensitive to security concerns. The study found that 39 per cent of UAE shoppers would immediately switch to a competitor after experiencing a falsely declined payment.

In addition, 32 per cent said they abandon purchases due to payment security concerns, while 38 per cent stated they would avoid shopping on websites where payment safety appears uncertain.

The report also highlighted increasing openness towards AI-powered commerce in the UAE. More than half of respondents, 54 per cent, said they are comfortable allowing AI assistants or agents to shop on their behalf. However, an equal percentage cited privacy concerns as the main barrier to adopting AI-driven shopping tools.

Consumers showed the highest willingness to let AI tools compare prices, analyse reviews, and recommend products in real time. Around 47 per cent said they would allow AI to find the best prices for products, while 41 per cent were comfortable with AI comparing product reviews and options.

The report noted that AI adoption is currently strongest among men and higher-income earners, suggesting that agentic commerce may initially be led by digitally confident consumer segments before expanding more broadly across the market.

Social commerce is also continuing to grow in the UAE, with 27 per cent of consumers now shopping directly through social media platforms.

Among online spending categories, food delivery emerged as the most common digital purchase category at 64 per cent, followed by fashion at 54 per cent, travel at 51 per cent, and beauty and electronics at 37 per cent each.

According to Checkout.com, the findings underline that trust has evolved from a competitive advantage into a core requirement for digital commerce success.

Abbondandolo said businesses that successfully combine innovation, security, and frictionless experiences will be best positioned to lead the next phase of digital commerce growth in the UAE.

“As AI, digital wallets, and embedded payments become more integrated into everyday life, consumers want technology that simplifies commerce without sacrificing transparency or security,” he said.

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