According to the report “Cashless Cities: Realizing the Benefits of Digital Payments,” cashless payments could boost Dubai’s employment by 1.1 percent and produce over US$27 billion in new economic activity by 2032.
METHODOLOGY: A major economics and evidence-based research firm polled 3,000 consumers and 900 businesses in six locations (Tokyo, Chicago, Stockholm, Sao Paolo, Bangkok, and Lagos) in 2016. The use, acceptance, and cost-benefit impact of physical and digital money were investigated in these surveys. Researchers then extended these poll results to another 94 cities throughout the world based on demographic and economic data to calculate the net impact of switching to a cashless economy on consumers and companies in each area.
The analysis was also able to uncover expected government impacts through other sources. To supplement the survey results and develop the overall findings, researchers used secondary data from the World Bank, the Organization for Economic Cooperation and Development, and other well-respected sources. The National Institute Global Econometric Model (NiGEM), an econometric model used by various central banks and other institutions, was used to estimate the “catalytic” impacts (economic growth, productivity, employment, and wages) that a shift to digital payments would have on each of the 100 cities studied.
Dubai, United Arab Emirates; February 7th, 2018: Visa (NYSE:V), the global leader in digital payments, has released the findings of an independent study commissioned by Visa and performed by Roubini Thought Lab, which looked at the economic impact of rising digital payment adoption in major cities around the world.
According to the report, increased use of digital payments such as cards and mobile payments could bring consumers, businesses, and the government in Dubai a net benefit of up to US$2.2 billion (AED 8.08 billion) every year.
The UAE Innovation Month was launched by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to promote innovation through a series of initiatives by government and private sector organizations showcasing the most important innovative developments that contribute to the promotion of welfare among all members of society.
The study looks at the economic impact of digital payments in a number of places around the world, including Dubai. The study estimates the immediate and long-term benefits for three primary groups in Dubai by lowering dependency on cash:
Consumers, who could save nearly US$200 million from time savings in banking, retail, and transit transactions, as well as a reduction in cash-related fraud; businesses, who could save up to US$1.5 billion from time savings in processing incoming and outgoing payments, as well as increased sales revenues from expanded online and in-store customer bases; and governments, who could save nearly US$500 million from factors such as increased e-government adoption.
The findings are part of a global Visa report titled “Cashless Cities: Realizing the Benefits of Digital Payments,” which is a one-of-a-kind study that quantifies the potential net benefits experienced by 100 cities around the world as they strive to significantly increase the use of digital payments over physical money.