Gurugram, India, September 12, 2022 (GLOBE NEWSWIRE) —
- BNPL may pose a threat to the credit card industry in the future. Given the low adoption of credit cards in the UAE and FinTech players entering this space, there is a long way to go for credit cards as well.
- In the future, we will see an increase in transaction values for both UPI and credit cards as people turn away from cash.
- FinTech has opened up new avenues for the lending industry to tap into the large customer base with no credit history. FinTech has created logical and innovative changes that can support the growth of the lending industry.
Acceptance of cashless society: The coronavirus pandemic has led to an increase in cashless transactions, encouraging the use of cards (both credit and debit cards). Demand for credit cards increased due to lower monthly incomes for a large segment of the population in the early days of the pandemic. The demand for online payments is constantly growing and service providers are constantly innovating themselves to offer their users worthwhile services. Consumers rely heavily on cards to make payments for their day-to-day needs because of the speed and convenience.
Rapid urbanization: People’s higher incomes and rising living standards in urban areas are driving the use of new consumer goods and services, leading to increased demand for modern products, especially from the country’s youth. This demand has resulted in increased average spend per card and number of transactions.
Excursion to the BNPL space: Traditional banks already offer BNPL services. Given the growth of BNPL in the UAE, particularly among the millennial population, it is predicted that other banks will also venture into this space. Many banks are already working in this space and can partner with FinTechs to leverage their experience and brand equity along with FinTechs’ technology, product offerings and merchant reach.
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