Between Q2 and Q3 2022, the use of virtual corporate credit cards climbed by 91% in Egypt, 117.5% in Saudi Arabia, and 42.9% in the UAE, according to Tribal, a 360° financial digital solution for businesses at various stages of growth.
Dubai: As businesses adjust to the burgeoning digital economy, the use of virtual Visa corporate credit cards has been expanding rapidly throughout the MENA region. According to Tribal Credit's recently published data, the number of new virtual cards climbed by 126% between Q3 2021 and Q3 2022. Tribal Credit is a company that offers complete digital financial solutions for businesses at all phases of development.
Tribal, a 360° financial digital solution for businesses at various phases of growth, reports that between Q2 and Q3 2022, the use of virtual corporate credit cards climbed by 91% in Egypt, 117.5% in Saudi Arabia, and 42.9% in the UAE.
Digital payments are becoming an increasingly important part of business operations in the Middle East. The use of digital payments has been growing rapidly in MENA since 2014, and the pandemic reportedly exacerbated this trend. A poll suggests that since 2020, the cumulative growth in digital transactions has exceeded 50%.
For instance, McKinsey reports that between February 2019 and 2020, card payments increased by 70% in Saudi Arabia, while between 2014 and 2019, consumer digital payments increased by more than 9% yearly in the United Arab Emirates.
Traditional banks have been slow to implement digital payments despite their fast use in recent years. However, payment fintech companies like Tribal have developed to offer services that are tailored for the commercial context of today.
As businesses transition to a digital economy, there are now significantly more digital payment options available. The growth was seen in the 157.4% increase in new virtual cards issued by Tribal in Saudi Arabia from Q3 2021 to Q3 2022. Additionally, it increased by 263% in Egypt and 64.6% in the UAE.
The Visa Virtual Corporate Card from Tribal is one of the most recent products in the field of electronic payments. The popularity of the product is primarily driven by its security, centralization of costs, control over payment rights and users, and simplicity of use.
Virtual cards do not need real cards, but they contain the same information as physical cards, such as the user's name, number, expiration date, and security code. Users who have a virtual wallet can make online or offline purchases using their smartphone or digital watch. Companies can now manage and monitor payments more efficiently thanks to this digital product.
Users benefit from increased freedom thanks to virtual cards in the world of online payments. The single-use virtual card was created so that businesses may pay for expenses that don't occur frequently, like buying an airline ticket, and that can be erased after usage. You can transfer money each month to cover regular bills with the recurring usage card.
"Because virtual cards enable data encryption and are digital, there is no chance of loss. As a result, it is more difficult for businesses to become victims of identity theft and cloning. Virtual cards can be used for one-time or recurring purchases. Additionally, they enable businesses to decentralize purchasing operations, improving the effectiveness of payment procedures and boosting organizational competence. Finally, they can be instantly deactivated and then reactivated if necessary in the event of cloning or improper use "Amira Fadel, Tribal's regional manager for the MENA, noted.
The three areas where Tribal customers spent the most money online were online advertising, freight and logistics, and technology and computer infrastructure, underscoring the importance of Virtual Cards as a growth tool for businesses at various stages of development.
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