A new Visa research report has revealed that UAE remitters are primarily motivated by the need to provide regular support to their families back home, and address unexpected emergencies, besides the desire to help those caught in a global crisis.

Visa’s ‘The Money Travels: 2024 Digital Remittances Adoption’ study examines how consumers send money home, diving into the rates, methods, and reasons for sending and receiving payments.

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 over two-thirds of remittance users in various markets.

While global remittances declined year-over-year due to various economic challenges, survey results in the UAE – identified as one of the countries with a higher percentage of remittance senders compared to receivers – have also shown a positive outlook on future remittances, with 73% of respondents in the country planning to send the same or more money abroad.

“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,” said Visa’s Salima Gutieva, VP and Country Manager for UAE.

“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

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% of senders did not use cash/check/money order. 

Physical payments equate to hidden fees. 50% 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% of remittance senders and 33% of recipients.

Additionally, 20% of senders and 23% of recipients struggled with calculating exchange rates.

Motivation for sending remittances in the UAE. Education costs and supporting people in crisis are among the top cited reasons why UAE remittance users send or plan to send money to help improve prospects. – TradeArabia News Service