Visa International, the world’s leading payment organisation, recently announced that Jordan had witnessed a 46% increase in the total value of consumer expenditures made during this year’s Eid Al-Adha holiday. The growth rate may be a direct result of the notable rise in domestic spending seen in Jordan, as buyers around the Kingdom turn to their Visa cards as a more convenient alternative to cash and cheques.
During the Eid Al Adha holiday that took place in January 9-14 of 2006, consumer spending rose to US$ 5.1 million compared to last year’s US$ 3.5 million. On another level the statistics also indicated a 34% increase in the total volume of transactions made during the holy season, which exceeded 32,000.
The first day of the holiday witnessed the highest usage seen this year yet with a recorded total amount of US$ 1.2 million made in expenditure volume both at retail stores and ATMs as Jordanians enjoyed the Eid festivities through shopping, dining, and traveling.
The highest rate of expenditure during the 6-day holiday season was made at ATMs with withdrawals of over US$ 1 million, an increase of 27% since last year’s Eid Al Adha, most likely due to the closure of local banks during the holiday season. The second highest category where Visa cardholders were active was on accommodations, with a 52% increase in used as Jordanians took advantage of Visa’s wide acceptance and utilized over US$ 800,000 dollars. Clothes, shoes and jewelry were also among the top purchasing categories this year throughout the six-day holiday.
Mr. Said Shuqom, Visa International General Manager for the Levant, said, "Results continue to prove that Jordanians make the best of their holidays by using their Visa cards to carry out their daily purchases and to bond more with their families. That is why electronic payment has become a part of the holiday in Jordan where consumers have realized Visa is the best way to pay. I would note, however, that although I am pleased to see that Jordanians use their Visa cards as a way to conveniently access their funds when banks and financial institutions are closed, I think that our spending habits can be improved. Many of us still feel that we need to make extra errands to get cash - why? Your Visa card saves you from this hassle, enabling you to use your card quickly and safely as an alternative to cash at shops and other retail outlets. When you are in a hurry to spend precious time with your family, it really makes a difference."
With over 14,000 merchants around the Kingdom, consumer transactions varied from one location to another, with the largest number of retail transactions carried out at department stores, supermarkets, family stores, and restaurants which is only normal at a time of year like this where consumers thrive on buying gifts and dining out with family and friends.
Mr. Said Shuqom added, "We would like to thank our member banks and retail merchants for their efficiency and support to provide the general consumer Visa’s world leading expertise to secure their daily transactions. Eid Al Adha is an active season for all, and our member banks take this opportunity to maintain their premium services that encourage customers to utilize their cards for their everyday and holiday purchasing."
On a global level, the Christmas holiday spending processed by Visa—during the company’s standardized 45-day peak processing period of 17 November to 31 December—increased 13 percent to US$291 billion, compared to US$257 billion over the same period in 2004. In all, Visa settled a total of 4.4 billion transactions during the holiday season, up 16 percent from the 3.8 billion transactions settled in 2004.
Regionally, the largest growth was seen in the Visa Latin America and Caribbean (LAC) region and in the Visa Central and Eastern Europe, Middle East and Africa (CEMEA) region. In Visa CEMEA, the number of Visa transactions increased by 55 percent to 32 million, while spending on Visa cards grew by nearly 45 percent to US$3.1 billion.
