Virtual credit cards are becoming an emerging trend in the Middle East and North Africa region with growing consumer demand for more secure payment options, reported Tribal.
Virtual cards, like physical cards, include the user’s name, number, expiration date and security code and have become a resource that allows users and companies to manage and monitor payments.
The single-use virtual card was designed so that companies can use it to pay for an individual expense – for example, the purchase of a collaborator’s flight – after which it can be closed reinforcing security and control. There is the periodic use card which can be used to assign personalised funds each month for a company’s recurring expenses.
“Startups can have problems acquiring credit cards through traditional banks; they may not meet requirements, or the approval process may take a long time,” said Amira Fadel, Tribal’s general manager for MENA.
“These businesses require customised financial products, that we provide through our virtual card, which has evolved into an effective and efficient spending control tool due to the unlimited number of cards that can be produced, whether for one-time or recurring expenses,” she continued.
The integrated financial solutions provider for startups across the Middle East said its MENA customers use an average of 25.4 virtual cards and indicated there were instances where businesses have used more than 400 virtual cards.
MENA companies therefore lead Tribal’s global customer base in the use of virtual cards compared to the global average of 12.5 virtual cards and an average of 9.4 virtual cards in the LATAM region.
This is because of the strong penetration of fintech and digital payments technologies in the region.
New fintech products such as virtual credit cards are in full swing in the Middle East due to the growth of digital payments in the region, which, according to the Middle East Institute, is experiencing 30 percent annual growth.
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