Digitally-enabled and financially inclusive economies are more resilient

Dubai - On September 1 this year, Visa unveiled the initial phase of its brand evolution, spotlighting the diverse capabilities of its network and commitment to enabling global economic inclusion

While payments, citizen services, and cashless economies have always been important, today more than ever, they are at the top of the government agenda, said Andrew Torre, regional president for the Central and Eastern Europe, Middle East and Africa (CEMEA) region at Visa.

Speaking at a virtual media briefing, he noted that governments have increasingly relied on, and have helped, facilitate electronic payments during the course of the Covid-19 pandemic. “They have realised that economies that have more consumers and more merchants that are digitally-enabled and able to participate in digital commerce result in more resilient economies.”

Torre also shared several changes that are happening across the payments landscape and how the Visa brand is transforming in line with its business strategy.

“The future of money is no doubt digital,” he said. “We are seeing some key trends that are shaping the future of payments and commerce. One of the first things that we have seen, that has really picked up over the past 18 months, is a rapid move to online commerce. We are home to one of the fastest growing e-commerce markets in the world and the Middle East and Africa region in particular is the second fastest growing market of all in terms of e-commerce. In 2019, it was valued at around $16 billion and we expect it to triple in the next two years.”

Another trend that he highlighted was the rapid rise to contactless payments. Visa in the CEMEA region is the fastest and most contactless adapted region, and now nine out of 10 transactions are contactless, he revealed. “This is partially because both consumers and merchants love it. During the course of the pandemic, 68 per cent of the consumers said that they are going to change the way that they pay and they feel more comfortable and secure with contactless payments. In the UAE, 75 per cent of consumers said that they felt that it was absolutely vital for them to shop at a place where they offer contactless payments.”

“We see not only payments, but the movement of money as core to our strategy going forward,” he added. “While previously we had been challenged in the physical distribution of plastic to consumers, the ability to push virtual cards in mobile phones and other devices has been a real game-changer for us and we have seen these virtual cards really growing in popularity.”

Torre also spoke about the opportunities for Visa to grow further in the market. “If you look at the numbers, you have over 680 million unbanked consumers and waves of those who are under underserved and new to banking each year. We also have over 60 million untapped merchants that are living in a world that is all cash, and we think that they are being excluded from a service that is life-changing, especially over the last 18 months.”

On September 1 this year, Visa unveiled the initial phase of its brand evolution, spotlighting the diverse capabilities of its network and commitment to enabling global economic inclusion. Aligned closely with the company’s business strategy, this phase includes the debut of a dynamic global marketing campaign and a preview of a modernised look for Visa’s iconic brand. The UAE is one of the first of Visa’s more than 200 markets globally to roll out the brand evolution, reflecting Visa’s commitment to the growth of digital commerce in the emirates.

rohma@khaleejtimes.com