UAE Records Over 25% Increase In International Card Spending In 2023

Total spending using international cards in the UAE has seen a significant increase of over 25% during 2023, according to J.K. Khalil, General Manager, MENA East, Mastercard. This growth is part of a broader trend towards digital payments in the UAE, driven by their convenience and security over traditional cash transactions. The adoption of digital payment methods is not just transforming the consumer landscape but also playing a crucial role in the recovery of the travel sector within the UAE and GCC countries.

Digital transactions in the Middle East and North Africa have experienced a surge, with a 20% increase in value and more than 50% in volume. This shift indicates a growing preference for digital payments for daily expenses, attributed to the desire for speed, convenience, and security. Mastercard's commitment to enhancing payment efficiency in the region is evident through its efforts to streamline transactions and offer comprehensive digital payment solutions through strategic partnerships.

Insights from Mastercard's payment index reveal an 85 percent regional adoption rate of new payment methods, with the UAE leading at 88%. Among these, mobile contactless payments (39%), "buy now, pay later" services (29%), cryptocurrencies (20%), and wearable technology (18%) are gaining popularity. The growth of cross-border payments is particularly notable among expatriates in the Gulf Cooperation Council countries, facilitating connections with their home countries.

According to Mastercard's cross-border payments report for 2023, 48% of UAE residents expect an increase in cross-border transactions over the next 12 months, while 36% anticipate receiving more cross-border payments. Mastercard's international money transfer services cover over 180 countries, reaching over 90 percent of banked populations worldwide, highlighting its commitment to providing safe and convenient options for global transactions.

Financial inclusion remains a key focus for Mastercard, aiming to integrate one billion individuals and 50 million micro, small, and medium-sized enterprises into the digital economy by 2025. The company offers tailored payment solutions for startups and SMEs to support their growth in the digital marketplace.

At COP28 in the UAE, Mastercard introduced the "Sustainable Cards Pledge," encouraging banks to switch to sustainable card materials by 2025. This initiative has already seen significant uptake, with over ten financial institutions joining, positioning the UAE as a leader in sustainability efforts within the financial sector. A recent study by Mastercard highlights that sustainability is a growing concern among Middle Eastern consumers, with a majority willing to take action and support environmentally responsible companies.

The shift towards digital payments in the UAE reflects broader trends in consumer behavior and technological adoption. With significant growth in both domestic and cross-border digital transactions, along with a strong emphasis on sustainability and financial inclusion, Mastercard's initiatives are shaping the future of payments in the region.

With inputs from WAM