WHY UAE EXPATS ARE TURNING TO DIGITAL REMITTANCES

Lower fees, fair exchange rates, speed and transparency among key drivers

- BY JUSTIN VARGHESE

Every month, thousands of expatriates living in the UAE send money home: to support ageing parents, pay for a sibling’s education, or cover medical bills back in their home countries. For many, these transfers aren’t just financial — they’re lifelines.

Yet for years, that lifeline came with invisible friction: long queues at exchange houses, opaque fees, and exchange rates that favoured the remittance provider more than the sender or receiver.

Now, thanks to a wave of digital upgrades, that reality is changing — fast.

Recent surveys and reports show that expats in the UAE are increasingly ditching physical branches and cash-based services in favour of app-based remittance options. Nearly two in three residents are now opting for mobile and digital platforms for cross-border transfers.

In a similar vein, 57 per cent of UAE residents — according to a Visa-commissioned survey — now favour digital apps for sending money abroad. The top drivers: ease, speed, safety, and transparency.

In a landscape where outward personal remittances reached Dh183 billion in 2024, the stakes are huge. Digital services are no longer niche — they are shaping the future of how money moves across borders.

Let’s emphasise: In most cases, digital remittance services provide significantly better value than traditional banks or physical operators. The savings come from two core areas:

Lean operations: Digital fintechs don’t run large branch networks or armoured cash logistics; their costs are lower, and those savings can be passed on to users.

Fewer intermediaries: Traditional SWIFT or correspondent bank transfers often route through multiple middlemen, each charging a cut. Digital networks are more direct, cutting down on hidden “middleman fees.”