A surge in UAE credit card use, but what’s being bought?
Network International (NI), a leading payment solutions provider, launched the Network Index of Consumer Spend (NICS), the first-of-its-kind cards spending index that tracks changes in consumer card spending in the UAE on a quarterly basis.
The UAE uses credit cards a lot
In a press conference, (NI) revealed that the first showed an increase of 8.33% in credit card spending in the UAE.
The Index was at 142.47 in Q1 2018 as compared to 131.51 in Q1 2017.
However, (NI) refused to disclose the value of money spent by UAE residents, reported PressReader, an online press release platform.
Samer Soliman, managing director, Middle East at Network International, said: “The NICS is the first time that relevant and credible spending data from millions of transactions across multiple channels has been used to present an objective view of how much residents and tourists in the UAE are spending and what they are spending on.”
The numbers acquired are divided into the following sectors: travel & hospitality; health care; consumer goods; and food & entertainment.
Where are credit cards mostly used?
During the press conference, it was revealed that during the first quarter of 2018 credit cards were mostly used in the sectors of food & entertainment, and travel & hospitality.
The NICS was launched with a special report on card spends for the full year of 2017.
PressReader reported that spending in the UAE increased with the index rising more than 17 points over the previous year to 134.92.
This was driven mainly by higher spending in the food & entertainment category, with an index value of 158.32. Healthcare was close behind at 142.98, followed by consumer goods which registered at 133.11.
A continuous increase in cashless transfers
The whole world is witnessing an increase in credit card purchases, according to a research conducted by Forex Bonuses, financials and experts in global trading, people have been using credit cards and mobile payments more and more over the past 5 years.
The research added that the top 3 users of cashless exchanges are Canada, Sweden, and the United Kingdom.
“In 2026 global brand credit, debit, and prepaid cards are projected to reach 767 billion purchase transactions for goods and services worldwide. Global brand cards are Visa, Mastercard, UnionPay, American Express, Discover/Diners Club, and JCB,” according to the Nilson Report, an agency of news and analysis of the global card and mobile payment industry.