UAE Network International sees growth easing

Economic weakness hitting tourism and spending dragged down card transaction expansion rates in the Middle East and North Africa in 2015, according to the largest payments processor in the Middle East and Africa.

Bhairav Trivedi, CEO of Network International, said growth in transactions would likely finish the year 10 to 12 percent higher from last year, lower than the levels reached in recent years of up to close to 30 percent.

This growth would likely rise to around the mid-teens next year, he said in an interview.

Still, the business is supported by a shift in the UAE, its largest market, and across the Middle East and Africa from using cash for payment to using cards.

“This year is tracking a little worse in terms of throughput,” said Trivedi. “But this region is relatively insulated because 62 percent of transactions within the UAE are in cash. If you compare the US or Europe they’re running at roughly 35 percent of transactions in cash.” (RTRS)