Technology

Dubai Police, Dubai Economy (DED), and the world's leader in digital payments, Visa (NYSE: V), today launched findings of a study on the impact of COVID-19 pandemic on payment behavior of customers in the UAE. The study additionally looks at consumers' basic views, choices as well as worries connected to digital payments and uses essential insights for merchants.

The study launch refers the launch of Visa's fifth annual "Stay Secure"-- this year in partnership with both Dubai Police as well as DED - social media sites campaign on Facebook (@VisaMiddleEast @DubaiPolice) and also Instagram (@VisaMiddleEast, @DubaiPolice @DubaiDED) to promote safe digital payment practices. This year's project comes at a time when more consumers in the UAE have actually increased their use digital payments, as well as several choosing to shop online for the first time to obtain what they require throughout this health crisis. The Stay Secure webpage has tips and educational videos, and also information on security features of digital payments.

COVID-19: Effect On Consumer Shopping as well as Payment Behavior

Sixty-eight percent of respondents evaluated in the UAE have reduced shopping in-store since the outbreak of the pandemic as well as 49% are shopping online a lot more. When they do shop at stores, 71% are utilizing digital payments over cash with the majority making use of contactless cards (54%) and also mobile wallets (46%) a lot more. For respondents shopping more online, the bulk (61%) use cards or digital wallets a lot more to pay online over COD. Raised count on the safety of the payment technology, rate, convenience as well as limited human contact, were the leading reasons cited for their increased choice for digital payments.

The New Normal?

These shifts in customer behavior triggered by the pandemic are anticipated to be the "new typical" as even more customers gain confidence in digital payments. Forty-three percent of consumers surveyed believe they will certainly continue to make use of contactless payments extra in-store post the pandemic and also 48% stated they will certainly continue to decide even more for paying online with card or digital wallet over COD.

Brigadier Jamal Salem Al Jalaf, Director of Criminal Investigation Department in Dubai Police, said: "Combatting cybercrime by increasing awareness as well as vigilance among UAE residents is a unified objective across all our government entities. Fraudsters are looking for to make the most of individuals investing more time online, victimizing their fears as well as anxieties, and making use of new systems of remote working. Government authorities, economic sector, and the neighborhood community all have a fundamental part to play to guarantee we are all protected. Dubai Police is extremely delighted to partner with Visa and also Dubai Economy on this Remain Secure initiative, which not only assists magnify our initiatives in the direction of reducing fraud and also cybercrime in the UAE but also echoes our recent National Fraud Awareness campaign to address this threat."

Ahmad Al Zaabi, Director of Consumer Protection in the Commercial Compliance & Consumer Protection (CCCP) sector, Dubai Economy, stated: "The study shows that customer behavior modifications as a result of the pandemic-- such as shifting online and raising use digital payments, are most likely to continue also after the pandemic-- a vital take-away for businesses creating strategies for the post-COVID-19 consumer and market overall. Dubai Economy has been promoting online shopping and contactless payments not only to ensure safe shopping during the COVID-19 crisis however also as part of our larger goal of accelerating the digital transformation of economic task, specifically retailing, in Dubai. With shopping malls and also commercial electrical outlets already reopened in Dubai contactless payment guarantees to add to the safety, convenience as well as total customer experience of purchasing in the city. We are pleased to partner with Visa and Dubai Police on the 'Stay Secure' project - a much required and timely initiative - to aid consumers protect themselves and also deal merchants vital insights for navigating the brand-new regular of cashless commerce, which is a significant step forward in speeding up the training course of UAE's digital future."

Data Privacy, Biometrics and also Mobile Wallets:

General Attitudes and also ConcernsAs much as 53% of respondents fit sharing personal data with financial institutions, telecommunications operators, and also government owned entities. Name, demographic data as well as contact details were pointed out as information that requires to be protected one of the most. Sixty-three percent discover biometrics secure and also for 55% biometrics is convenient to make use of. Sixty percent depend on paying with mobile purses such as Apple Pay and Samsung Pay. These wallets use Visa's tokenization modern technology, which replaces sensitive card data, including the 16-digit card number, with a random number, also known as a "token", to protect cardholders' account details when paying in store or online.

Neil Fernandes, Visa's Head of Risk for Middle East as well as North Africa, commented: "The pandemic has changed how consumers store as well as pay with boosted dependence on and preference for digital commerce. With increased use both amongst experienced and also first-time users, cybercriminals also are eager to capitalize on the increased activity and also vulnerability, especially of first-time online shoppers. That is why educating consumers concerning safe payment behavior is important not just for the moment however as we progress as well as adapt to the brand-new typical. We are delighted to partner with Dubai Authorities and Dubai Economy to proceed our mission of empowering consumers to continue using electronic payments and also online channels with full confidence."

Gen Z vs The Rest

Interestingly, the findings likewise exposed significant differences in the behaviors of Gen Z (18-22 years) contrasted to the general population. As an example, less than half (49%) of Gen Z respondents locate biometrics secure contrasted to 70% of the rest. With regards to tokenization technology, less than half of Gen Z consumers (48%) think it enhances mobile wallet security compared to 61% of non-Gen Z customers. With Gen Z going into the job market and their purchasing power expected to increase in the future, insights right into their sights and also behavior work for businesses seeking to cultivate long-term relationships with them.

Enhancing Online UX and also Reducing Cart Abandonment: Key Insights for Merchants

Majority (58%) of UAE consumers surveyed have actually deserted their online shopping cart as a result of authentication delays or failure. Of those that deserted their carts, 62% try again after a long time, 35% bought from other sites, 34% bought from a neighboring shop, and also 32% dropped the idea of purchasing the product entirely. For 66% of respondents, an authentication process that does not need them to go into one-time-passcode (OTP) for standard and also recurrent transactions would be easier; 65% would certainly rely on a much more seamless process.

Merchants seeking to supply an improved online experience for customers can now adopt Visa Secure (formerly called Verified by Visa), an updated program to help make online payments much more secure and seamless. It uses the most recent EMV 3-D Secure (3DS) specification, which leverages fraud-detection intelligence working behind the scenes to validate cardholder identity as well as block unauthorized transactions.

The survey provides further insights on just how merchants can build trust in eCommerce sites. The complying with became the leading "confidence builders" by consumers checked: offering a variety of payment alternatives (51%); presenting validated customer reviews (50%); supplying payment choices in local currency (45%); trust badges/security symbols (42%); convenience of refunds (42%); and also SSL certificate (40%).

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