Analysis of Demand and Supply for Mobile Payments in the UAE during COVID-19

Abstract

The COVID-19 pandemic impacted many if not all aspects of our lives, including the way we handle money. This paper takes mobile payments as an example to show how COVID-19 affected the United Arab Emirates. Many researchers rushed into writing their first impressions in response to the pandemic to produce early study results. This paper uses these early electronic articles and blogs as valuable data sources for a first-level analysis. It attempts to assess the impact of COVID-19 on mobile payment services in the post-pandemic world from the demand and supply perspective in the UAE. The previous literature has been reviewed to understand the scope of the services present in the UAE before the onset of the pandemic. Further, an online questionnaire with open- and closed-ended questions was used to gather data from 125 vendors capable of receiving mobile payments. Regression analysis with two time periods has been included to develop a better perception of mobile payment services before and after the spread of the coronavirus. It was found that COVID-19 has created a suitable environment for mobile payments, with significant positive relationship in both periods. The reasons for using mobile payments during the pandemic were to apply social distancing and to avoid physical touch, a requirement in the COVID-19 period, resulting in a move towards creating a positive attitude towards a cashless society.