UAE Retailers to Offer New Payment Options: Visa and NEOPAY
Dr Saeeda Jaffar, Senior Vice President and Group Country Manager for GCC at Visa, alongside Fernando Morillo, Group Head of Retail Banking at Mashreq. Image credit: Visa.
In a strategic collaboration poised to reshape the retail landscape of the United Arab Emirates (UAE), Visa and NEOPAY, the payment subsidiary of Mashreq, are teaming up to introduce an innovative instalment payment solution. With a growing demand for flexible payment options in the region, this partnership aims to empower consumers, provide financial convenience, and drive digital transformation.
The new instalment payment solution is set to launch soon, offering UAE consumers greater flexibility and convenience when making purchases. This payment innovation is expected to revolutionise how consumers manage their budgets and access affordable options for larger purchases.
Meeting the Evolving Consumer Needs
According to a recent survey conducted by Euromonitor, UAE consumers are increasingly seeking “Buy Now, Pay Later” payment choices that align with their financial preferences. The survey revealed that 48% of consumers find instalment payment options make high prices more manageable, while 37% believe they assist in handling unexpected expenses. Furthermore, 44% of customers view instalments as more flexible than other payment methods, and an equal percentage admit to spending more than planned when opting for instalment purchases.
Dr Saeeda Jaffar, Visa’s Senior Vice President and Group Country Manager for GCC, acknowledged the UAE’s surging demand for instalment payment solutions. She cited Euromonitor’s research, which indicates that 20% of consumer credit card purchase volume is now converted to instalments. This partnership, she believes, will address the evolving needs of consumers while propelling digital transformation within the UAE market.
Fernando Morillo, Group Head of Retail Banking at Mashreq, added that this collaboration combines their expertise in financial solutions with Visa’s global network and technology capabilities. Together, they aim to provide an exceptional instalment payment experience that empowers consumers to make purchases confidently and conveniently.
Visa’s Instalment Solution (VIS)
Visa’s Instalment Solution, or VIS, is designed to cater to the surging demand for flexible payments. It offers a seamless and efficient tool for in-store and online shopping using Visa cards. Shoppers can make purchases across various point-of-sale terminals and eCommerce channels while having the flexibility to select their payment terms. No additional credit assessment is required, and consumers can use their existing bank credit cards to apply for instalment offers.
This payment solution also accelerates growth for merchants by allowing them to attract customers with flexible payment options. It supports greater flexibility and control over financial planning for customers, making it easier to distribute the cost of the goods they need. Furthermore, it offers a real-time instalment solution for consumers, promoting a smooth and hassle-free payment experience while enhancing operational efficiency for banks.
Global Expansion Plans
Visa’s Instalment Solution benefits consumers and opens cross-border transaction opportunities with selected corridors. Plans include expanding into key markets such as Saudi Arabia and Qatar. By actively implementing its network-based instalment solution across regions like North America, Asia Pacific, the Middle East, and Europe, Visa aims to empower consumers with flexible payment options and increase merchant conversion rates.
The Future of Payments in the UAE
As the new instalment payment solution is poised to launch in the UAE soon, consumers can anticipate enjoying this convenient and flexible payment option at participating retailers across various industries. The collaboration between Visa and NEOPAY promises to usher in a new era of financial convenience and digital transformation in the UAE.
In conclusion, this partnership signifies a pivotal moment in the evolution of payment methods in the UAE. Visa and NEOPAY’s commitment to addressing consumer needs and enhancing flexibility in payments are set to reshape the retail landscape and drive the adoption of digital payment solutions in the region. As the demand for flexible payments continues to grow, this collaboration promises to meet the evolving needs of consumers while fostering digital innovation in the UAE market.
