Visa Inc. recently commissioned a consumer survey that finds the overall usage and acceptance of payment cards in Egypt is growing but there is still a need for more cooperation to increase point-of-sale (POS) options. The recently released statistics are a sign that Egyptians are increasingly embracing the shift to a cashless society. Egyptian consumers are using their debit, credit and prepaid cards to make both small, everyday purchases on consumer goods and at restaurants as well as larger, less frequent purchases such as air travel, accommodation, and international transactions. The survey found that; 73% of cardholders use their payment cards at least once every two weeks and 65% of all payment card purchases are for dining and entertainment followed by 41% for consumer goods and 41% for fashion and accessories.
Visa undertook the survey in order to identify payment card habits in Egypt, examine common perceptions and misperceptions about payment card usage, and determine the best ways to communicate new products and campaigns to customers. A total of 766 Egyptians from the ages of 25 to 45 were interviewed with an equal amount of men and women surveyed.
"Based on the survey results, we can see more and more Egyptians using their payment cards for direct payment rather than just withdrawing cash from an ATM," said Tarek Elhousseiny, Visa's General Manager for North and West Africa. "Visa member banks have put significant resources and investments into infrastructure in order to make electronic payments a convenient payment tool for consumers. With this survey, it is clear that with further cooperation from all parties, including banks and retailers, we can make payment cards the way of the future in Egypt."
According to the survey, the leading areas of payment card spending in Egypt, in descending order are on; dining and entertainment (65%), fashion and accessories (including cosmetics and skincare products) (41%), consumer electronics (41%), travel expenses (30%), recurrent services (phone and internet bills) (30%), and household appliances (23%).
The overall perception and knowledge of payment card usage is communicated through the frequency of use (73% use their cards at least once every two weeks), the large percentage of respondents using their cards for both direct purchases and cash withdrawals (82%) and an awareness of the option to do both with their electronic payment cards (98%).
It was found that 80% of those surveyed thought of Visa first when asked about electronic payment cards, even if they had never used a Visa card before. Consumers would like to use their cards more often but cite inadequate and unreliable infrastructure as the greatest obstacles to greater payment card usage, with 69% of respondents highlighting lack of point-of-sale (POS) machines as the main issue. The basic idea of what the Visa brand is and what a payment card is used for is widespread but further education and information about the different methods and uses of payment cards is necessary to increase usage and acceptance in Egypt.
Visa's objectives for increasing acceptance include focusing on both card acceptance infrastructure and further development of points-of-sale (POS). There are three areas Visa has been targeting in these efforts; working with businesses to increase the number of POS's in Egypt, the infrastructure and availability of POS, making sure they are working properly, and building strategic partnerships with card issuers and merchants for the overall benefit of all stakeholders. These strategic partnerships are encouraged by several Visa initiatives such as, competitive pricing, exclusive partnerships with more and more banks, and merchant incentives so that all parties benefit, while facilitating card usage for consumers. Visa has been and will continue to work closely with banks, merchants, the government, consumers and the media in order to highlight the benefits of electronic payments for all stakeholders.
