The future of money is rapidly evolving with emerging trends, technological innovations and the changing consumer behaviours shaping the financial industry.
The latest episode of AB Majlis in conversation with Dr. Saeeda Jaffar, Senior Vice President and Group Country Manager for the GCC at Visa explores the evolving landscape of digital payments.
The rise of digital and contactless payments
One of the most striking revelations from the conversation was the shift towards digital payments in the Gulf region over the past few years. Dr. Jaffar noted, “If I look at pre-COVID numbers, or pre-COVID levels, less than 40 percent of the transactions were digital. Today, that number is close to 70 percent.”
This trend is particularly pronounced in face-to-face transactions, with Dr. Jaffar stating, “In the GCC, mostly in the GCC, that most of the face to face transactions, depending on the countries but between the UAE Saudi close to 85-90 percent, even higher of the face to face transactions tend to be contactless.”
The rapid adoption of contactless payments, often via smartphones, has transformed the way people interact with money in their daily lives.
Technological innovations in payment security
With the rise of digital payments comes an increased focus on security. Dr. Jaffar highlighted Visa’s longstanding use of artificial intelligence in fraud detection: “We have been using AI for the last 30 years, we celebrated our 30th Birthday of AI last year.” This technology analyses numerous parameters from each transaction to determine the likelihood of it being legitimate.
Another key innovation discussed was tokenisation, which she described as “A safer, more secure digital form of a card.” She revealed that there are currently close to eight billion tokenised credentials worldwide.
The growth of Buy Now, Pay Later (BNPL) and installment plans
The conversation also touched on the increasing popularity of BNPL and instalment payment options. Dr. Jaffar explained that these options appeal to consumers due to their “clarity, predictability, and simplicity,” allowing people to better budget and manage their finances.
However, she also addressed concerns about potential indebtedness, especially among younger consumers. “Anytime we do take any type of credit, we have to be responsible,” Dr. Jaffar emphasised, highlighting the importance of financial literacy and responsible borrowing.
When asked about the future of money, Dr. Jaffar said, “The future of money is digital.” She predicted that consumers will have a multitude of payment options at their disposal, stating, “It will be digital, and it will be the customer’s choice.”
The availability of options means that merchants and retailers will need to adapt to meet consumer preferences. As she pointed out, “If they don’t support my payment method, as a consumer may choose to not shop there.”
Crypto and blockchain: The next frontier?
On the topic of cryptocurrency, Dr. Jaffar acknowledged the potential of the underlying technology, she noted that “we’re still at very early days and very early stages of crypto.”
She further emphasised Visa’s commitment to distributed ledger technology and partnerships with crypto players but cautioned that the specifics of how and where crypto will scale remain to be seen.
Looking ahead, she highlighted Visa’s position as a technology company at the forefront of payment innovation. With investments of over $10 billion in recent years focused on security and innovation, Visa is positioning itself to play a central role in shaping the future of money and payments.
As consumers and businesses navigate this rapidly changing landscape – the way people pay and get paid is undergoing a profound transformation. From contactless payments and AI-powered security to the potential of blockchain and cryptocurrency, the future of money is being written now – and it’s digital.
Tune into AB Majlis every Monday
To listen to the full episode and gain a comprehensive understanding of doing business in the Gulf region, visit our RSS feed or check out AB Majlis on Spotify, Apple Podcasts, and other platforms.
Episodes are also available on:
Tune in every Monday for weekly episodes that will help you stay ahead of the curve and enrich your understanding of the Gulf region.
Subscribe to Arabian Business for more exclusive content.
Follow us on
