Visa Report: UAE's 'Couch Economy' Drives Digital Payment Surge
New data from Visa reveals that online and in-app payments now constitute 55% of domestic payment volume in the UAE, up significantly from 35% in 2019.
Visa's latest report, "The Great Indoors: How the 'Couch' Is Redefining Consumer Spending Habits," highlights a substantial shift towards digital payments in the UAE, indicating a flourishing "Couch Economy". This trend sees everyday purchases, entertainment, and services increasingly moving to online and in-app platforms.
Key Findings
The report, based on anonymized VisaNet transaction data, shows that online and in-app payments now make up 55% of the UAE's domestic payment volume, a considerable increase from 35% in 2019.
This digital adoption is also reflected in payment frequency:
- In 2026, 25.7% of active UAE cards made 10 or more online or in-app payments per month, up from 4.5% in 2018.
- This figure is comparable to the US (25.4%) and the UK (27.8%), demonstrating the UAE's strong digital adoption.
Shift in Spending Habits
Food delivery services exemplify this transition. The share of UAE cards active on food delivery apps surged from approximately 2% in 2018 to nearly 30% in 2026. This growth is primarily driven by everyday users, not just high-spending cardholders.
Similarly, entertainment consumption has shifted towards home-based digital options. The report indicates that the share of UAE cards holding streaming and pay-TV subscriptions remains higher than those used for cinema and concert spending, suggesting a growing preference for at-home digital entertainment.
Mohamed Bardastani, Visa’s Principal Economist for Central and Eastern Europe, Middle East and Africa, commented that the rise of the couch economy underscores the UAE’s digital advancement and consumers’ growing demand for convenience and smooth digital experiences.
Questions, answered
- What is the 'Couch Economy' as described by Visa?
- The 'Couch Economy' refers to the significant increase in consumer spending on routine purchases, entertainment, and services through online and in-app channels, primarily from the comfort of one's home. It highlights a preference for digital convenience over physical outings.
- How much has online and in-app payment volume grown in the UAE?
- Online and in-app payments now account for 55% of the total domestic payment volume in the UAE. This marks a substantial increase from just 35% in 2019, reflecting a rapid shift towards digital transactions.
- What is the trend for active card usage on food delivery apps in the UAE?
- The share of active UAE cards used on food delivery apps has grown dramatically, from approximately 2% in 2018 to nearly 30% in 2026. This growth indicates that food delivery has become an everyday habit for many consumers.
- How does the UAE's digital payment frequency compare internationally?
- In 2026, 25.7% of active UAE cards made 10 or more online or in-app payments per month. This figure is comparable to the US (25.4%) and the UK (27.8%), placing the UAE among leading nations in frequent digital payment usage.
- What does this data suggest about entertainment spending in the UAE?
- The report indicates a preference for home-based entertainment, with the share of UAE cards used for streaming and pay-TV subscriptions remaining higher than those used for cinema and concert spending.
This brief was summarised and rewritten by Gaia Living from public reporting. Figures and details reflect the original sources.
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