UAE Merchants see greater use of electronic payments during DSF 2004

During the recent month long peak shopping period - Dubai Shopping Festival 2004 - the retail marketplace saw an escalation in the use of credit and debit cards by both local and international cardholders for a wide variety of purchases.

The world's leading payment system, Visa International said that during this DSF, UAE retailers saw a 27 per cent jump from 2003 in usage of Visa branded cards by local and international cardholders. A record 2.5 million transactions were made in just one month from 15 January to 15 February 2004. This equates to nearly 3,500 transactions per hour.

'Accepting Visa increases merchant revenues and profits primarily because cardholders make larger purchases than cash customers and merchants also save time and costs involved in cumbersome cash-handling process. Furthermore, cardholder loyalty schemes and promotional offers help retailers achieve greater customer satisfaction,' said Kamran Siddiqi, General Manager Middle East, Visa International.

'The role that payment cards play in the success of any retail operation cannot be underestimated,' said Ishwar Chugani, Executive Director for Giordano Middle East. 'On average, 20 percent of all purchases made at Giordano are with non-cash payments and during DSF 2004 card payments grew by 35 percent as compared to last year.'

Chugani added that consumers are becoming increasingly convenience conscious not just about where they shop, but also about how easily they can shop. 'Payment cards offer greater purchasing power and freedom than cash payments. I have no doubt that the growth in electronic payments has made a significant contribution to the commercial success of our growing retail operation.'

The diversity of the merchants that now accept cards is a clear indication of the strong growth in their popularity for both high and low value purchases. The Gold and Jewellery Group Dubai, a group that represents almost 500 of Dubai's jewellery traders, also agrees.

Tawhid Abdullah, Chairman of the group said, 'Many of our retailers report that their customers greatly value the added benefits and security that card purchases bring them, especially the insurance of purchases for theft or loss - a must for high value purchases when travelling abroad.

'Following the recent sales surge of 24 per cent witnessed during DSF 2004 to reach total AED400 million, 10 per cent was generated through payment cards.' Abdullah noted that jewellery represented an increasingly important retail sector within the UAE, 'especially during peak tourism times such as Dubai Shopping Festival, payment cards are a very secure and convenient payment solution.'

During DSF 2004, clothing stores witnessed the highest growth in Visa card expenditure with an increase of 69 per cent over DSF 2003, while jewellery stores, groceries, furniture and telecommunication services saw sales increase of 41 per cent, 40 per cent, 39 per cent and 20 per cent respectively through Visa cards as compared to DSF 2003. This year, highest sales on Visa cards were generated on 29 January, prior to Eid Al Adha break and further again on 14 February.