More than eight out of ten online shoppers in the UAE still prefer to deal in cash rather than make online payments, a survey has revealed.
Cash on delivery is the preferred payment method of 85 percent of people polled, according to a survey by comparison site compareit4me.com.
Research from 4,000 respondents found that although customers wanted to use websites to compare car insurance prices, they were reluctant to use credit or debit cards to pay for products online.
A recent report released by Payfort, an online payment gateway in the UAE, said 71 percent of residents use e-commerce. Despite this, Payfort reports that 50 percent of online shoppers in the Middle East still choose to pay by cash on delivery.
“E-commerce is the fastest growing sector and by 2020 it will be nipping on the heels of airlines to become the biggest,” said a Payfort spokesperson.
Payfort predicts that by 2020, the Middle East commerce market will be worth $13.4 billion (AED49 billion).
Dubai web design company Go-Gulf conducted a survey that found that 85 percent of online purchasers in the region would rather pay cash on delivery than pay online by card. The Go-Gulf survey also found that 42 percent of people believe that the ability to compare between stores and brands online would improve their shopping experience.
Compareit4me.com responded to demand by becoming the first online insurance portal in the UAE to offer a “cash on delivery” option.
Jonathan Rawling, CFO of compareit4me, said: “We have certainly seen a dramatic increase in the number of people interested in purchasing insurance, loans and other finance solutions online with the number of visitors to our site increasing by 300 percent over the past two years. People evidently enjoy the freedom of being able to compare products and brands from the comfort of their desk, or home. Giving them the option to pay in the way which best suits them will only encourage them further.”For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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