JEDDAH: Prepaid is the fastest growing payment mechanism worldwide, with the UAE alone expected to exceed $18 billion from prepaid cards over the next five years, and similar growth rate forecast for Saudi Arabia, said James Ratcliff, editor of Cards International and spokesperson for Prepaid Summit: Middle East 2011, organized by VRL Financial News in Dubai. "The region's prepaid opportunities will be fueled by various factors including the high standard of living, the skilled expatriate population and the vast number of unbanked migrant workers," he said. The latest figures place the UAE's per capita income at $43,000 per person (2008), with the expatriates making up 85 percent of the skilled workforce in the Emirates and 40 percent in Saudi Arabia. Migrant workers comprise 39 percent of the UAE's labor force, and 29 percent in Saudi Arabia. Ratcliff said that these factors are behind the region's prepaid spending growth. Visa said in a report recently that growth in prepaid and debit transactions continues accounting for more than half of Visa's business. "Over the next five years, transactions by prepaid mechanisms will account for almost 60 percent of purchases globally," said Ratcliff. "With credit card expenditure down between seven and 10 percent this year banks need to look for new products for existing customers, as well as for new customers." "Prepaid can deliver both. It can allow a range of applications both for businesses and consumers - either as part of a broad card strategy, or as a stand-alone product. Either way prepaid cards provide banks with the unparalleled opportunity to create new revenue and profit streams." The 2011 summit, set for March 22-23, will focus on emerging opportunities in region such as prepaid cards by Shariah and the perspective of the broader Asia Pacific.
