Dubai: Majid Al Futtaim Finance is looking to “more than double” its prepaid card transactions in the UAE, as consumers are increasingly looking for ways to make cashless payments.
The company, which provides credit and prepaid card products to consumers in the country, achieved a 40 per cent growth in its prepaid segment from 2012 to 2013. The growth covers payment solutions including Just for You gift cards, reloadable LoadnShop prepaid card and MyNetCard.
“We expect prepaid card usage to continue this positive trend, and for 2014, we are looking to more than double our prepaid card transactions,” Rasool Hujair, CEO of Majid Al Futtaim Finance, told Gulf News.
The growth can be attributed to the rising popularity of cashless transactions and the flexibility and convenience that prepaid cards represent. “Convenience, flexibility, ease of use and consumer empowerment are driving the growth of prepaid cards in the region,” Hujair added.
Prepaid cards are gaining wider acceptance because they allow consumers to make purchases online and in store without the need of carrying cash, having a bank account or a credit card. They can be purchased over the counter and used anywhere in the world.
The payment option is most popular among the local community, with 50 per cent of Majid Al Futtaim’s prepaid card customers being UAE nationals, followed by Arab expatriates (25 per cent). Less than 2 in 10 (15 per cent) of the customers are Asians and 10 per cent are Europeans.
“[The company] was the first to introduce the concept of retailing for prepaid cards and make them available in the region and since then our portfolio of products has expanded to meet the increasing demands and lifestyle needs of the consumer,” said Hujair.