Visa cards break through million mark in the UAE

Cash is no longer king, with spending reaching almost $5 billion-a-year.

Results for the year to the end of September 2001 confirm a radical change in people's behaviour, with a strong move away from old-fashioned cash and towards the convenience and flexibility of payment cards. There is now a widespread network of shops and other outlets that accept Visa cards and the trend for using plastic for every kind of spending - increasingly on everyday items such as food, clothes and petrol - is set to accelerate.

Since Visa's Middle East office opened early in 1996, Visa card numbers have increased fivefold and sales volumes have risen eightfold. Transactions are up from 1.8 million to more than 23.6 million and Visa's annual retail sales volume has soared from just under $136 million to more than $1.2 billion in the year ending September 2001.

Peter Scriven, general manager of Visa in the Middle East, says, "These figures reveal the changing patterns of payment in a rapidly-developing market. In early 1996, most people relied on cash and Visa cards were largely used by affluent international travellers.

"Since then, the banks' determination to extend the benefits of modern payments has resulted in extraordinary growth and achievement, culminating in passing the magic million card milestone.

"Only a few years ago, card use was low and largely confined to international travel expenditure and cash withdrawals. Over time, people have grown to rely on their Visa cards for every kind of spending - increasingly for everyday buys such as supermarket shopping and petrol. These figures show that cash is no longer king and Visa cards are not just for big spenders and special occasions. Increasingly, they are for everybody, every day."

Banks in the UAE are determined to stay ahead of the competition. "They are global leaders in terms of innovation and sophistication," Mr Scriven adds. "They have been among the first in the world to introduce smart payment cards, bringing new flexibility, security and choice to local people. They have also demonstrated that Visa cards can be used in the virtual world of e-commerce as well as the physical world of the local mall, bringing everything the world has to offer into their customer's homes and lives."

Smart cards were introduced to the UAE in September 2000 by ABN Amro in its first credit card programme. Key achievements in 2001 include Emirates Bank Group's launch of the Middle East's first multi-application smart card, offering credit payments and a loyalty points scheme on a single card.

The move away from cash and towards payment cards is also evident across the Middle East as a whole. Figures for the end of September show a 31 per cent annual increase in the number of Visa cards to a total of more than 5.7 million and a 23 per cent increase in spending. Over a five-year period, the number of Visa cards has nearly tripled and sales have risen from $8.5 billion in 1997 to almost $30 billion in 2001.

Again, transactions in shops and other outlets have risen dramatically and there has been a 132 per cent rise in retail sales, which stood at $3.93 billion in the year ending September 2001.

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