Visa and Neopay, a subsidiary of Mashreq specializing in the provision of payment financial services, announced the beginning of cooperation with the aim of introducing an installment payment system in the United Arab Emirates.
Last week, these firms published a joint press release in which they stated that their partnership is aimed at providing consumers living in the mentioned country with an offer to pay in installments. The companies also said that their offer will be launched in the near future, but did not specify the exact timing of the appearance of this financial product on the UAE market.
The partners reported that a rapid increase in consumer demand for payment in installments is being recorded in the specified Persian Gulf country. According to the companies, the belief has been formed and strengthened in the mass consciousness, according to which the installment offer mitigates the impact of high prices on the personal budget and to some extent reduces the financial burden. Also, this type of payment helps consumers cope with sudden expenses and is a more flexible option compared to other solutions.
Visa’s installment payment solution, known as VIS, was originally developed in order to meet the need for flexible payment offers, which was clearly visible on the market. This is mentioned separately in the joint press release of the partners. Consumers can use the solution of one of the giants of the payment industry in stores and when shopping on virtual platforms using a Visa card.
The companies’ press release indicates that as part of their solution, buyers will be able to make purchases through various trading terminals and e-commerce channels. Also, in this case, it is possible to choose payment terms. Separately, the press release notes that there is no need for an additional assessment of creditworthiness. Consumers can use an existing bank credit card to go through the application procedure for installments.
Also, the solution formed as part of the implementation of partnership relations between the two companies will become a kind of platform for the growth of sellers’ business and will help them gain customers with flexible payment offers.
The press release separately notes that Visa’s installment solution provides opportunities for cross-border transactions in selected corridors. Also, the participants of the partnership consider this proposal as a weighty reason to make plans for a successful future in the markets of countries such as Qatar and Saudi Arabia.
Saeeda Jaffar, Senior Vice President and Manager of the Visa Group for the Gulf states says that the new innovative solution will meet the needs of consumers who are steadily growing and will be a step towards digital transformation in the UAE.
Fernando Morillo, head of Mashreq retail banking group, said that the partnership allows the company to combine its experience in the area of financial offers with technological capabilities and Visa’s global network.
Currently, there is an interest from consumers around the world in using digital functions to improve the shopping process, but not all markets have accepted the transition to advanced technologies as quickly as the UAE. The results of industry research indicate that in this Persian Gulf country, 94% of 3.1 million adult buyers used at least one digital function as part of their consumer experience.
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