'Bank cards stay at home': Why more young Emiratis prefer digital payments

Physical bank cards are gathering dust in the wallets of UAE students who say they haven't swiped plastic in months, as digital payment methods reshape how young Emiratis handle money in one of the world's most cashless societies.

University students told Khaleej Times that smartphones have replaced cards as their primary payment method, driven by speed, security, and a growing infrastructure that makes contactless payments nearly the first option across the Emirates.

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According to the UAE Central Bank, mobile wallet transactions saw strong double-digit growth last year, with younger demographics leading adoption.

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"Apple Pay. I haven't touched my physical card in months," said Omar Mustafa in response to a question on his preferred payment method. "It's faster, and I don't need to carry a wallet."

For him, the transition began during the pandemic when contactless payments became essential. "Once I realised I could pay with my phone everywhere, the card stayed home."

The shift is supported by nationwide infrastructure. Retailers, cafes, public transport, and service counters now accept tap-to-pay almost by default. Students say they no longer check whether a place accepts digital payments—they assume it does.

"Speed and security," Mustafa explained when asked about the biggest advantage. "I get instant notifications, and I'm not worried about card skimming." Digital wallets encrypt payment data and use tokenisation, meaning card numbers are never transmitted during purchases.

New anxieties

Yet convenience introduces new anxieties. "Battery anxiety," Mustafa admitted. "If my phone dies, I'm stuck." Being financially stranded because a device is uncharged has become the modern equivalent of forgetting a wallet at home.

Falah Faris prefers a hybrid approach. "Mostly Apple Pay, but I keep my card for backup," he told Khaleej Times. "Some places still don't accept digital." For many students, physical cards have become a safety net rather than a primary tool.

His main concern extends beyond logistics. "Every transaction is tracked. There's no anonymity anymore like cash had," Faris said. Digital payments create comprehensive records of consumer behaviour—data that banks and payment processors can access.

Abdulla AlAmeri remains more traditional. "Physical card mostly. I like having the card as backup," he said. "I still prefer swiping—it feels more secure somehow." His hesitation highlights how psychological trust still leans toward the tangible. "What happens during system failures or phone issues?"

These concerns aren't unfounded. UAE payments specialists say risk today is less about stolen cards and more about over-reliance on single devices and networks, advising consumers to maintain backups while enjoying digital convenience.

What about the future?

When asked about the future, predictions varied. "Biometric payments—face or fingerprint," Mustafa said.

"Cards will feel as outdated as cheques do now." Faris expects coexistence: "Digital wallets will grow, but banks will adapt." Abdulla offered a more measured view: "Probably digital, but people my age will still want options."

An additional trend is emerging among students: many now store bank cards digitally inside government super-apps such as Tamm and transit systems, rarely carrying the physical versions at all.

What's clear is that the transition is already underway.

UAE students aren't debating whether digital payments will dominate but are actively and daily navigating how to live in a world ruled by the internet of things.

Ahmed Waqqas Alawlaqi

Staff Writer

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ahmedwaqqas@khaleejtimes.com

Ahmed Waqqas Alawlaqi is the youngest Special Correspondent, reporting from Abu Dhabi on youth, AI and innovation, and human-interest stories. His work brings exclusive perspectives from the Capital, highlighting voices that shape the UAE's future.