Mobile applications now account for 25% of small financial transfers in the UAE, a significant increase from 16% in 2023, according to Mohammed Al Ansari, Chairman of the Emirates Exchange and Remittance Group. Speaking to Emarat Al Youm, Al Ansari highlighted the growing popularity of app-based transfers, particularly for amounts of 1,000 dirhams or less, as exchange companies push promotional campaigns to attract users.

He explained that customers often prefer lower fees for smaller amounts, making mobile apps an appealing option. App-based transfer fees are around 50% cheaper than branch services, costing between 10 and 15 dirhams compared to the 30-dirham average for in-branch transfers. Exchange companies have further incentivized app usage by offering discounts of up to 30% on transfer fees since December.

However, Al Ansari noted that many customers still trust branches for larger transfers due to the availability of face-to-face service and direct communication with customer support. He added that exchange companies have invested heavily in upgrading their technical infrastructure, aiming to reduce reliance on physical branches while maintaining Central Bank regulations and ensuring customer trust.

With rising operating costs, exchange companies increased fees for in-branch transfers last year but kept app fees unchanged, making digital transfers a more economical option for users. The move also helps them compete with fintech firms offering free transfer services to build their customer base.