Study: 75% decrease in demand for cash on delivery service during the “pandemic”

40% of consumers in the UAE were exposed to electronic fraud attempts during 2020

A study revealed by Dubai Police, Dubai Economy and Visa International, yesterday, showed that about four out of every 10 consumers (40%) in the UAE were exposed to fraud attempts via the Internet during the past year, but indicated that this did not stand in the way of growth. The increasing confidence in digital payments and their rates of use in traditional and electronic stores, as consumers continue to prefer them over cash payments thanks to technical developments and security standards that give them an increased sense of security when using these methods to pay for their purchases.

cash transactions

The “Stay Safe 2021” study pointed to a continuous decline in the rates of the use of cash transactions in the UAE, explaining that, in conjunction with the increasing demand for shopping on e-commerce platforms and the use of contactless payments since the beginning of the “Corona” pandemic, the rates of demand for the cash on delivery service also decreased. By 75%, the rates of using digital payments (contact cards and digital wallets) for online or cash-on-delivery payments increased by 98%.

Consumer opinions confirm the expectations that this trend will continue in the future, as 40% of the respondents said that they exclude the use of the cash on delivery feature, while 45% of them are likely to use contactless payments in the future.

confidence

According to the study, two-thirds of consumers (63%) showed high levels of confidence towards the use of digital payments (contactless payments and digital wallets) when shopping in stores, which reflects a significant increase since the beginning of the pandemic.

Among the most prominent reasons consumers mentioned for their confidence in the contactless payment system: convenience (60%);

speed (59%);

Avoiding human contact (56%), while 46% prefer it because it allows them to control expenses due to the fact that the card or mobile phone remains in the hands of the consumer during the payment transaction (48%), and as an innovative payment method (48%).

digital wallets

Payment systems that allow verification via biometrics, such as digital wallets, gained great confidence among consumers, with more than two-thirds (67%) saying that they are secure, while (60%) reported that they provide them with complete control over the payment process, because it does not leave their hands. During the transaction, you don't have to remember passwords.

Exploit

The Director of the General Department of Criminal Investigation and Investigation at Dubai Police, Brigadier Jamal Salem Al Jallaf, said, "The Internet has become a favorite destination for fraudsters and pirates aspiring to exploit consumers' fears and lack of experience, especially since many people spend more time on the Internet, including those who use it for the first time."

chances

For his part, Director of the Consumer Protection Department in Dubai Economy, Ahmed Al Zaabi, said that "shopping in Dubai offers many opportunities to show the innovations of retail outlets, as it includes a large variety of demographics and business companies."

He added: "At Dubai Economy, we focus on making shopping in the city an enjoyable experience, and we have taken advantage of every opportunity, including the increase in online shopping in the wake of (Covid-19), to encourage consumers to enjoy the benefits of cashless and safe shopping."

Exploit changes

“The results of the (Stay Safe 2021) study showed consumers fully adopting digital payment systems during the pandemic, but this transformation is not without risks, as fraudsters were quick to seize the transmission of the virus,” said Neil Fernandez, director of risk management at Visa, Middle East and North Africa. Consumers are turning to the online shopping environment to look for opportunities to take advantage of these changes in payment methods for goods and services.”

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