Factors That Enable Cashless Payment Adoption Among the Blue-Collar Workers in Dubai

As part of the Smart Dubai 2021 Strategy, Dubai is leveraging a wide range of technologies to enhance the lives of its residents and drive economic development. A key component of this strategy is the shift toward digital payments and a cashless economy (UAE Government Portal, 2021). In 2020, the Dubai Government established the Cashless Dubai Working Group to create an action plan aimed at transforming all payment transactions in the city to cashless platforms. The UAE, including Dubai, has the essential prerequisites for a cashless economy, such as advanced digital infrastructure and government regulations that protect consumer security and privacy. However, the adoption of cashless payments in the UAE remains relatively low compared to other advanced countries like Sweden and South Korea. One significant factor contributing to this lag is the high number of unbanked residents in the UAE, particularly low-income expatriate workers, many of whom are employed in blue-collar jobs in construction and manufacturing. Addressing financial inclusion and promoting cashless payment adoption among this demographic is crucial for Dubai’s progress toward a cashless economy. This study aimed to assess the readiness of blue-collar workers to embrace cashless payments and identify key factors that would encourage their full participation. The research was conducted in the Sonapur, Al Quoz, and Jebel Ali areas of Dubai, where many labor camps are located. Data was collected from 35 blue-collar workers using a semi-structured questionnaire. The findings revealed that most blue-collar workers are unbanked and primarily use cash for transactions. However, they expressed willingness to adopt digital payments if provided with instruments accepted by merchants for their daily transactions. Loyalty programs and discounts were identified as major motivating factors for transitioning from cash to cashless payment methods.