Visa - changing the way the Middle East pays

In the year to the end of September, Visa card numbers rose 31 per cent to more than 5.7 million and spending went up 23 per cent to almost $29.3 billion. The number of transactions grew 25 per cent to more than 118 million.

Most significantly, there was a 30 per cent increase in the number of sales in shops and other outlets, underlining a major change in people's behaviour and a growing recognition of the convenience, security and flexibility of modern payments. Over the last five years, retail sales volume in the region has risen by 132 per cent.

Peter Scriven, general manager of Visa in the Middle East, says, "These figures reveal the changing patterns of payment in a rapidly-developing region - and a real change in people's lifestyles.

"When Visa's Middle East office opened in early 1996, most people relied on cash and Visa cards were largely reserved for affluent international travellers. Since then, the banks' determination to extend the benefits of modern payments has resulted in extraordinary growth and achievement.

"Only a few years ago, card use was low and largely confined to cash withdrawals. Over time, people have grown to rely on their Visa cards for every kind of spending, from the supermarket, petrol station and bookstore to restaurants and clothes.

"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 across the region 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."

Individual countries have also recorded major achievements in the year ending September 2001. Notably, the number of Visa cards in both Kuwait and the UAE passed the million mark and the Saudi Arabian market celebrated reaching two million Visa cards.

The average amount spent in shops and other outlets in Bahrain continues to be well ahead of other Middle East markets, while spending by foreign cardholders in the country's merchants rose by 32 per cent - the steepest increase in the region.

Visa card numbers in Jordan more than doubled from 235,201 to 591,293. Sales volumes were up 18 per cent from $592,118,000 to $701,387,000.

There are now more than 1,076,000 Visa cards in Kuwait, an increase of more than 18 per cent on last year. Spending is up more than 11 per cent to almost $6.9 billion.

In Lebanon, cardholder spending outpaced the 28 per cent rise in card numbers, with sales up an astonishing 52 per cent. Foreign cardholders clearly appreciated the country's Visa acceptance network - spending went up 80 per cent, from almost $16.9 million to almost $30.5 million, in 31 per cent more transactions.

Oman remains one of the fastest-growing Visa markets in the world. Card numbers were up 61 per cent to almost 421,000 and spending rose more than 91 per cent to $1.14 billion. Over the last five years, card numbers have risen from 12,500 and expenditure from $28.9 million. In the last year, transaction numbers have almost doubled, from 3.7 million to more than 6.9 million, with transactions at point-of-sale rising 50 per cent and retail sales volume growing almost 28 per cent.

Qatar has seen cardholder expenditure rise 30 per cent to $758 million - largely in transactions made in shops and other outlets - which rose 34 per cent - rather than cash withdrawals. As the market develops, credit cards are also becoming increasingly popular.

In Saudi Arabia, where Visa member banks passed the million card barrier only two years ago, they reached the two million milestone in June. By the end of September, there were more than 2,130,000 Visa cards in the Kingdom - an increase of 28 per cent on the September 2000 figure. Spending rose by 26 per cent to almost $14 billion over the 12 months.

At the end of September, there were almost 1,006,000 Visa cards in the UAE - 14 per cent, more than a year previously. Sales volume over the last 12 months rose 19 per cent, from almost $3.94 billion to almost $4.7 billion.

ends