The most significant finding unveiled by the results of the second wave of the MasterIndex of Consumer Confidence was the significant improvement of the Saudi consumer sentiments. The Saudi consumers scored the highest results on all five MasterIndex factors, becoming the most optimistic consumers in the SAMEA Region.

With regards to credit cards usage, the consumer lifestyle survey revealed rather cross-market idiosyncrasies. For instance, in Saudi Arabia, cardholders spend more on small and medium size transactions and use their credit cards less than five times a month unlike cardholders in the UAE and Kuwait who use their credit cards more frequently during a month. In India, 72% of Indians use their credit cards 1-2 times (or less) during a month. 23% of Indians use their cards between 3-5 times and the remaining 5% use credit cards 6-10 times in a month.

I think convenience, security and wide acceptance are the key factors that are driving the trend of using plastic instead of cash or cheques.

Yes it does. For instance, the UAE market has proved to be more mature, and this is due to the state-of-the-art technological infrastructure, solid acceptance as well as advanced consumer awareness. On the other hand, in Egypt, a nascent market, there is still much to be developed in terms of acceptance and customer education. To this end, MasterCard is exerting strenuous efforts to help such countries develop, and our efforts have already started to bear fruit.

Debits card issuance and usage globally are growing very rapidly. MasterCard promotes debit cards in all markets but the sheer size and potential of the Indian market, in which debit cards are growing exponentially, means that a significant investment is needed to develop awareness and consumer education. Having said this, at MasterCard we promote both debit and credit cards to varying degrees depending on market needs, and this is reflected in our marketing campaigns.

According to the consumer lifestyle survey, only 14% Indians own a credit card. This is in sharp contrast to countries like UAE and Kuwait where 63% and 50% of respondents respectively own a credit card.

In terms of the average monthly spending on credit cards, 73% of Indians spend less than US$35, while 25% spend between US$35 – 300. Only 2% of Indians spend over US$300 on their credit cards every month. On the other hand, only 6% cardholders in UAE have an average monthly spending on credit cards below US$35. 58% of cardholders in UAE have an average monthly spending on cards of over US$300.

I think it’s a joint effort between banks and card brands. At MasterCard, we help member financial institutions to develop and implement integrated payment solutions that leverage MasterCard’s comprehensive product set and technology innovations. An example of this is the money share program. Building on MasterCard’s pre-paid platform, MasterCard has rolled out the program in conjunction with leading financial institutions in the region such as National bank of Egypt, Banque Du Caire and Kuwait Finance House.

There is a huge potential for the growth of the payments industry in this region, and it stands to reason that players compete to increase their market share. At MasterCard, we view cash and checks as the main competitor, and we exert every effort to turn markets in this region into predominantly cashless societies through integrated marketing campaigns, consumer awareness programs and constant product innovations.

Banks develop different credit card products for different segments and purposes. Therefore, consumers opt for the credit cards that cater the most to their specific needs. It might be that each card meets a specific need, and thus the consumer turns up having more than one credit card. Ultimately, the customer will decide, based on the value proposition of each product, which cards remain in the wallet.

As a UAE initiative, primarily focused on the government payments category, e-Dirham resonates, well with MasterCard’s strategy of helping these markets shift into predominantly cashless societies. MasterCard however is a global payments company with one of the most recognized and respected brands in the world. MasterCard manages a full range of payment programs and services, including MasterCard® credit and debit cards, Maestro® online debit cards, Cirrus® ATM cash access, and related programs. Our customers therefore get great utility from using their MasterCard.

Most banks provide more than one billing cycle option during a month, and the consumer can contact their bank to select a billing option most suited to their cash flow situation.