The most popular online payment method in the United Arab Emirates (UAE) in 2023 was by card at approximately 48 percent. It was followed by Wallets at 23 percent in that year. The most common card scheme for that year was Visa.
UAE e-commerce
The e-commerce industry in the UAE has been booming over the years. The country was one of the fastest-growing e-commerce countries due to its readiness factors. The UAE has been working on improving its internet penetration and adoption, e-payment platforms, and growth of the logistic infrastructure which have contributed to the increased public trust in e-commerce platforms. Also, the industry is diverse as it incorporates government services and education payments in additional to the traditional shopping. The leading e-commerce segment in UAE in 2023 was toys, hobby and DIY. The government is continuously encouraging the electronic economy to solidify the country as a regional core for the growth of online businesses. An example is by providing support for entrepreneurial initiatives such as the Dubai Future Foundation.
COVID-19 impact on UAE digital market
Prior to the COVID-19 pandemic, the value of e-commerce sales in the UAE was forecasted to reach 27 billion U.S. dollars by 2022. However, new COVID-19 regulations have accelerated the growth of the industry, with online sales being the alternative to traditional shopping. Around one-third of respondents in a survey on the impact of COVID-19 on online shopping in the UAE in 2020 stated that they increased their online shopping frequency after the pandemic. The digital readiness of the country ensured a swift response to the pandemic. The Telecommunications Regulatory Authority (TRA) also eased e-commerce licenses in the early COVID-19 period.
