SHOP SMART, PAY SMART
Increasing e-commerce spend and a push by governments to encourage cashless transactions are easing more and more consumers into smart payments.
FOR MANY YEARS, UAE consumers seldom used cards over cash. But higher internet penetration rates and the proliferation of mobile devices have encouraged a move into electronic payments. Payments solutions company MasterCard saw a growth of 20.7 per cent in purchase transactions in the Asia-Pacific, the Middle East and Africa, recording around 9,932 million transactions in 2014. “Among consumers, the benefits of electronic payments are becoming more widely recognised. The increasing cost of cash, which some studies estimate to be up to 1.5 per cent of GDP, has encouraged governments across the Middle East to modernise their payment landscapes and move towards a world beyond cash,” Eyad Al Kourdi, country manager, UAE, MasterCard told Gulf Business.
“Governments have also recognised that the benefits of electronic payments far outweigh those of cash in terms of speed, convenience, security and transparency. In addition to this, it has become clear that cash is inefficient and is tied to corruption, illegal activity and potential waste.”
As a starting point, the government is looking to encourage smart payments mainly through retail spending. At the Cards and Payments Middle East 2015 event, Dubai’s Department of Economic Development launched the Dubai Plus card, a multi service privilege card programme for government and semi-government employees. The card will allow users to make purchases and ensure they are eligible for loyalty points on services and purchases.
In addition, electronic payments have also found favour in the UAE through the rapidly growing e-commerce industry, according to industry experts. The UAE’s e-commerce market was valued at $2.3bn in 2014, found a recent report by Payfort. By 2020, the company