Small businesses across the UAE are increasingly adopting digital payment apps to cater to customers who don’t carry cash, moving away from traditional cash transactions. These apps have emerged as a practical alternative to costly point-of-sale (POS) machines, which require significant investment, recurring fees, and business qualifications that many small vendors cannot meet.

Entrepreneurs like 20-year-old university student Shawki Zaitoun, who runs a student-led perfume brand called Wardlak, have found digital payment apps to be a game-changer. Speaking to Khaleej Times, Zaitoun shared that he struggled with cash-only transactions during his early ventures. Many customers, especially students, didn’t carry cash, which made breaking even a challenge during events. His adoption of a payment app made transactions smoother and more convenient for his customers.

Zaitoun also noted the risks associated with physical card readers, recounting an incident where damage to his venue could have cost him expensive equipment. “I’m glad I didn’t have a card machine there,” he said.

Digital payment apps are simple to use. Business owners can download the app, set up accounts, and generate payment links or QR codes for customers, who can then use their bank details or smartphone wallets to complete transactions. The money is deposited directly into the vendor’s account.

Another entrepreneur, Myrna Fandy, founder of hijab brand Wove, had a similar experience. Fandy explained that without a card reader, she had initially struggled with cash-only payments, losing potential customers. After trying various apps, she found one that worked for her, despite some customers being hesitant at first due to unfamiliarity with the technology.

“Buying a card machine was such a hassle,” Fandy said, adding that maintaining the machine and dealing with banks was too complicated. She believes the UAE is moving toward a cashless future, a sentiment echoed by her own habits and those of her family and friends, who rarely use cash anymore.

For small businesses, these digital platforms offer an affordable, efficient way to keep up with the growing demand for cashless payment options, reflecting the UAE’s broader shift toward a digital economy.