A growing number of UAE consumers are turning to digital platforms for their everyday purchases, with 62% planning to increase their online shopping over the next year, according to Checkout.com’s latest annual report.
The findings, published in The State of Digital Commerce in MENA 2025, highlight a rapid shift in consumer behavior and payment trends in the UAE, driven by technology adoption, digital convenience, and changing lifestyle patterns.
Online spending soars in UAE
Daily online transactions in the UAE have surged by 320% since 2020, with Checkout.com reporting a 1333% increase in its local processing volumes over the past five years. Year-on-year growth from 2023 to 2024 reached 177%.
Food delivery leads online spending, accounting for 57% of purchases, followed by clothing and fashion at 48%, and travel at 38%. The data shows consumers are becoming more confident in using digital platforms for a wide range of goods and services.
Digital payments on the rise
Use of Account Funding Transactions (AFTs)—which support real-time digital payouts—has grown by 388% year-on-year in the UAE. This reflects the shift toward faster, more secure financial transactions across salaries, gig economy payments, and peer-to-peer transfers.
Meanwhile, cash-on-delivery is in decline. Since 2020, its use has dropped by 53%, signaling greater trust in digital payments.
Fintech adoption and AI tools
The UAE continues to lead the region in fintech usage. About 42% of consumers now use digital wallets or payment apps weekly, while 35% engage with fintech platforms for investment and wealth management.
Artificial intelligence is also reshaping online shopping habits. According to the report, 46% of UAE shoppers have used Generative Chat tools during online purchases, and 37% have tried Visual Search AI. Features like virtual try-ons and AI-driven chatbots are becoming increasingly popular.
Consumer behavior and security
In-store habits are evolving alongside digital trends. Nearly half of UAE shoppers (44%) now compare prices or browse online while inside physical stores. Trust in brands is also increasingly influenced by peer reviews and social proof rather than traditional marketing.
However, concerns about online fraud are growing. Reported cases among UAE consumers have jumped from 35% in 2023 to 57% in 2025. About 23% of consumers say they have abandoned purchases over security concerns.
“In this increasingly competitive landscape, payment performance has become a critical differentiator,” said Remo Giovanni Abbondandolo, General Manager, MENA at Checkout.com. “Fast, secure, and intelligent payments are foundational to commercial success – not just at the point of transaction, but across the entire customer experience.”
Abbondandolo added: “The data from this year’s report clearly highlights the UAE residents’ growing appetite for solutions that not only simplify their daily interactions but also meet the increasing need for convenience, security, and innovation in their shopping and payment behaviors.”
tanvir@dubainewsweek.com
