The new digital technology is shaping up the economic sector worldwide. Cashless economies are becoming more and more common around the globe with the passage of time. The numbers of users of currency notes and coins are decreasing slowly but continuously. Now heavy purses are replaced with smart devices for transaction of money not only in a specific country but also in countries in various parts of the world.
The same trend is quite evident in UAE also where there is presence of large number of foreigners along with the sophisticated local citizens. But an important factor that is accelerating the speed of this innovation is the importance given to the modern technology by rulers of the rich gulf country. Currently, cash is used for 75% of all the payments in the country and it is expected that this percentage will reduce markedly in the coming years.
Between 2011 and 2015, the country saw the increase of debit and credit card transaction more than 100% and it reached to 750 million at the end of this period. Apart from that, more than 90% homes in UAE are connected to internet while more than 81% residents in the country own smartphone. All these factors are clearly indicating the prospects of dealing the currency electronically. It is estimated that the e-commerce market in UAE will double its size by 2020.
The implementation of VAT (value added tax) is also playing its role as it is changing the payment behavior. Now, both the customers and merchants are required to carry extra cash for additional expenses to pay for VAT. In other case, they have to take risk of rounding off the money. In such circumstances, the ideal situation is to adopt digital wallets as they allow the customers to pay the exact amount of the bill. Therefore, it is expected that more people will start using e-wallet in the coming days as it is the ultimate necessity in order to make their savings.
There are several other reasons also that one may adopt e-commerce in future. It is extremely safe as compared to conventional money that can easily be stolen while one can easily pay through digital wallets anywhere, anytime and to anyone without delay. It is also helpful in tracking one’s spending through e-wallet.
It is evident from the above mentioned facts that UAE is rapidly becoming a cashless society that provides simple and safe solution for customers and traders. This provides immense business opportunities for companies related to e-commerce and e-wallet. We provide trade license for all those who want to start any business related to e-commerce in Dubai and other emirates of UAE.