With an emphasis on making UAE cashless economy under the Vision 2021 plan, the UAE government has created a conducive environment for digital transformation of UAE. The government’s commitment in this direction is evident from the fact that over 4.7 million migrant workers out of the total 8 million migrant population are being monthly paid through e-payment method. Most of these workers are involved in blue collar jobs.
Mastercard and the UAE exchange have collaborated to digitalize the payment system through products such as Smart Pay Payroll Card and Go-Cash multi-currency prepaid cards. Creating a digital gateway for employers for making payment to the unbanked employees, Smart Pay Payroll cards are a convenient alternative for bank accounts. Gocash, on the other hand, offers convenience to the travelers of a nation that is a hub for migrants. With travelers looking for more convenient travel requirement options, Gocash provides the ease of just carry a prepaid card for all their travel and online spending. The Gocash prepaid card can be loaded with six different currencies of the travelers’ choice from more than 20 currencies available in the currency bouquet.
The conducive environment in demographic features and government initiatives in UAE is expected to propel rapid growth in the digital payments industry. The driving factors for growth are the young and tech-savvy population, the government’s vision of a digitally transformed UAE and the high penetration rates in internet and mobile. The private sector has also been influenced and encouraged through the government’s commitment in this direction through Dubai Blockchain and Smart Dubai initiatives. The reach of mobile devices especially low end smartphones have strengthened the access to the digital payments methods among larger population.
Businesses to expand their reach are prioritizing the use of mobile for connecting with other businesses as well as consumers. Moreover, with advanced technologies like blockchain, artificial intelligence and big data, and regulatory and compliance rules related to KYC and money laundering will ensure the improvement and security in the mobile payment services. With the ever increasing consumer demand for convenience through improved services, innovation will be a significant factor ascertaining the pace of growth in the digital payments industry and expectations from major players to bring in innovative technologies will be high. Recognizing the importance of constant advancement, UAE exchange is developing multiple products to ensure easy access to payments for the low-income and unbanked population. Mastercard is propelling more private-public partnerships for developing a cashless economy in line with economic vision of the government.
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