UAE remittance senders are primarily motivated by the need to provide regular support to their families abroad and address unexpected emergencies, according to Visa’s annual “Money Travels: 2024 Digital Remittances Adoption” research report.
The report also revealed that beyond supporting their families, senders prioritise aiding those in need in response to global events.
The study examined how consumers send money abroad, diving into the rates, methods, and reasons for sending and receiving payments.
UAE remittance trends
According to the global survey of nearly 45,000 respondents, the need for fast, easy and secure payments has never been more important to families, communities and economies in the UAE and worldwide.
The report also found that digital applications are the preferred method for moving money globally for more than two-thirds of remittance users in various markets.
While global remittances declined year-on-year due to various economic challenges, survey results in the UAE have shown a positive outlook on future remittances, with 73 per cent of respondents in the country planning to send the same or more money abroad.
Visa’s Salima Gutieva, VP and Country Manager for UAE, said: “Security, ease and speed are the top priorities for expatriates in the UAE when sending money abroad to support families back home or aid people in crisis.
“This research shows that digital payments are becoming a key tool for providing instant support, whether for unexpected medical bills, education, or food.
“There is more work to be done within the industry, however, to make cross border money movement more streamlined to create new opportunities for financial inclusion and wealth building in communities globally that rely on these lifeline payments.”
Highlights of the study include:
- Digital payments are the quickest payment method used among senders and receivers. Ease of use, privacy, security, and making life easier for friends and family are highlighted as the top benefits of sending or receiving international payments digitally
- Digital apps remain the top method for both sending and receiving remittances in the UAE, followed by digital remittances at a physical location. Usage of physical remittances declines among senders in UAE. In December 2022, 9-15 per cent of senders did not use cash/check/money order
- Physical payments equate to hidden fees. Fifty percent (50 per cent) of UAE respondents have been offered a free transfer when sending cash, checks, or money orders, only to find out there were hidden fees
- High fees, including how exchange rates are calculated, are a top issue for digital transfers. Fees were a key issue for 38 per cent of remittance senders and 33 per cent of recipients. Additionally, 20 per cent of senders and 23 per cent of recipients struggled with calculating exchange rates
- Motivation for sending remittances in the UAE. Education costs and supporting the lives of people in crisis are among the top cited reasons why UAE remittance users send or plan to send money to help improve prospects
Visa works in collaboration with global remitters and enablement partners such as Brightwell, Thunes, Remitly, Western Union and Asia United Bank (AUB) to help enable efficient money movement through digitised remittances.
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