A “Black Swan“ Moment for Digital Payments in the Middle East?

A “Black Swan“ Moment for Digital Payments in the Middle East?

Vivek Agrawal,

Global Head of Enterprise Business,

Comviva Technologies



Has the 2019 novel coronavirus (2019-nCoV) staged a "black swan“ moment (however unintentionally) for digital payments in the Middle East?

Industry experts certainly seem to think so. A study conducted by Mastercard in April, for example, unearthed that a hefty 82 per cent of customers in the United Arab Emirates (UAE) preferred to pay in a contactless manner. This was due to safety and hygiene concerns amid the coronavirus pandemic, of course. No small numbers, these, whichever way one chooses to look!

"Digital“ We Stand

A study conducted by Mastercard has indicated that contactless payments rose 100 per cent in March 2020.

Industry studies have highlighted that contactless payments such as mobile wallet transactions have risen in hypermarkets across the region by 78 per cent in Q1 2020 when compared with the same period a year ago.

A 2019 Visa-DED Stay Secure study stated that about 80 per cent of people in the UAE who already use contactless payment technology trust this payment method.

As per Mastercard estimates, one in every four transactions is digital. Six in 10 (61 per cent) respondents in the region have swapped out their top-of-wallet card for one that offers contactless.

According to a