Visa has published its annual ‘Money Travel: 2024 Digital Remittances Adoption’ report, which revealed that sending money to relatives and family abroad is the primary reason remittances are sent in the UAE.
The Visa Money Travels: 2024 Digital Remittances Adoption study examines how consumers send money abroad. It dives 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 have also shown a positive outlook on future remittances. Furthermore, the UAE has been identified as one of the countries with a higher percentage of remittance senders compared to receivers. In fact, 73 per cent of respondents in the country plan to send the same or more money abroad.
Highlights
The study found that 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 also highlighted as the top benefits of sending or receiving international payments digitally.
When looking at different methods of sending and receiving remittances in the UAE, the study found that digital apps were the primary method followed by digital remittances at a physical location. Usage of physical remittances declines among senders in UAE. In December 2022, nine to 15 per cent of senders did not use cash/check/money order.
Interestingly, 50 per cent of UAE respondents have been offered a free transfer when sending cash, checks, or money orders. However, they have gone on to find out there were hidden fees when making physical payments. Furthermore, 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.
Lastly, the report revealed what the strongest motivators were for people to send remittances in the UAE. Education costs and supporting the lives of people in crisis were cited among the top reasons.
Supporting remittances
Visa works in collaboration with global remitters and enablement partners to help enable efficient money movement through digitised remittances. Some of its partners include:
- Brightwell
- Thunes
- Remitly
- Western Union
- Asia United Bank (AUB)
In the UAE, Visa is working with its financial institution partners to enable Visa Alias Directory to meet the growing demand among local consumers for easier, cost-effective and more secure ways to move money internationally. Instead of dealing with long, complex account details, Visa Direct Alias allows consumers to send and receive money internationally using their phone numbers.
“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 its 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.”