Dubai - Mubasher: Visa published a study on Tuesday, analyzing the spending habits and payments preferences of Millennials in the UAE and KSA, the company said in a press release.
Over 1,000 Millennials or youth aged between 18 and 34 years old, and Non-Millennials, or people aged 34 years old or more, across Saudi Arabia and the UAE were interviewed for the study, revealing that this group is the fastest growing segment within the region.
In the UAE and KSA, millennials tend to be higher spenders than their global peers, they are driving the surge in e-commerce spending in the GCC, which increased 25% percent in 2015, according to the Study.
By 2018, credit cards will account for 65% of non-cash retail payment volumes by all UAE residents, while in KSA debit cards will account for more than 70%, Visa predicts.
The decision to choose one payment proposition over another is heavily influenced by the rewards and benefits associated with specific products, with KSA millennials value travel-related benefits, discounts and cashback are motivating factors in the UAE.
“With millennials in the UAE and KSA having spending power two and five times that of their Middle East peers, there is significant potential for banks, issuers and merchants with the right business models,” said Kriti Makker, from Visa Performance Solutions.
“Visa’s research shows millennials in these countries to be highly sophisticated consumers who have embedded technology into their lives, which has important commercial implications for areas like the development of loyalty programs and the targeting of advertisements,” he added.
The study identified a series of specific opportunities for banks, issuers and merchants to capture a greater share of the millennials market in the UAE and KSA, the report indicated.
