Credit card potential high in cash-based GCC region

Abu Dhabi: Cash remains king among retail consumers in the Gulf, offering a high growth potential for the payment card industry, according to an official of a leading payments company.

"Personal consumer expenditure (PCE) in the GCC is estimated at 95 per cent cash which means most consumers use cash for payments and not cards," said Clare Woodcraft, head of Public Affairs for Visa International in Central and Eastern Europe, Middle East and Africa.

"So there is high growth potential in the GCC for the payment cards industry," Woodcraft said yesterday at the launch of the First Gulf Bank's (FGB) "ladies only" credit card.

Although the Gulf countries are predominantly cash-based societies, the credit card business is growing as banks lure customers with a host of benefits, she added.

"We are seeing a healthy growth of the electronic payments card business in the region. The UAE, particularly is more mature than other GCC markets in terms of card penetration, acceptance and infrastructure," said Woodcraft.

"Volumes are increasing but average spend per card (or transaction value) is decreasing in the UAE and the GCC and this is a sign of a mature market."

However, she provided no figures. The new ladies only credit card is the latest innovative offering of FGB, said Sanjay Chaturvedi, head of the bank's credit cards division.

"It underlines FGB's growing recognition and awareness of the increasing spending power in ladies' handbags," he said.

The key factors differentiating the FGB women's card from similar products is that it carries a broader range of benefits tailored specifically to female customers, he said.

Among the benefits offered to holders of the new card are increased spending limits over other cards and a range of value-added benefits, discounts and offers at top shops.