The Rise of Digital-Only Credit Cards: Is the UAE Ready to Go Fully Digital?
In recent years, the UAE has seen a remarkable shift towards digital financial solutions, driven by a young, tech-savvy population and strong government initiatives. Among these innovations is the rise of digital-only credit cards—credit cards that exist entirely in the digital realm without any physical counterpart. As the country continues its journey towards a cashless society, it’s worth exploring whether the UAE is fully prepared to embrace this digital transformation in the credit card market.
In markets like the United States and Europe, these cards are gaining popularity among tech-savvy consumers who value instant access to credit, real-time transaction tracking, and enhanced security features such as virtual card numbers and dynamic CVVs. For instance, Apple’s Apple Card, launched in partnership with Goldman Sachs, has set a new standard for digital credit cards with its integration into the Apple ecosystem, offering features like daily cashback, no fees, and financial management tools within the Wallet app.
In Asia, markets like Singapore and China are also seeing a surge in digital-only credit cards, supported by a strong culture of mobile payments and a push towards cashless economies. Singapore’s DBS Bank, for example, offers the DBS Altitude card, which is fully managed through their mobile app and provides travel rewards with an emphasis on digital usage.
What Are Digital-Only Credit Cards?
Digital-only credit cards are designed to be managed entirely online, often through mobile banking apps, with no physical card issued. These cards provide users with instant access upon approval, secure online transactions, and seamless integration with digital wallets and payment platforms.
Examples of Digital-Only Credit Cards in the UAE
1.Liv. World Credit Card:
Offered by Emirates NBD, the Liv. World Credit Card is fully integrated with the Liv. mobile banking app. It allows users to earn rewards like Skywards Miles and cashback and offers features like real-time spending notifications and virtual card numbers for added security.
2.Mashreq Neo Credit Card:
The Mashreq Neo Credit Card is another example of a digital-only offering in the UAE. Managed entirely through the Mashreq Neo app, it provides users with instant issuance, contactless payments, and rewards tailored to online spending.
3.ADCB Hayyak Credit Card:
ADCB’s Hayyak Credit Card is designed for digital enthusiasts, offering instant issuance through the ADCB app, and integration with Apple Pay and Google Pay for seamless, contactless transactions.
The UAE’s Digital Penetration and Cashless Journey
The UAE is well-positioned to lead the adoption of digital-only credit cards. According to the Telecommunications and Digital Government Regulatory Authority (TDRA), the UAE’s mobile phone penetration rate reached an impressive 99% in 2023, one of the highest in the world. This high level of digital penetration is complemented by the government’s push towards a cashless economy, as seen in initiatives like the UAE Central Bank’s “National Payment Systems Strategy.”
Moreover, a 2021 survey by Mastercard revealed that 70% of UAE consumers were planning to use less cash in the future, with many opting for digital payment methods instead. The COVID-19 pandemic accelerated this trend, with contactless payments surging by 200% during 2020.
Is the UAE Ready to Go Fully Digital?
Given these trends, the UAE is certainly on the right path to embracing digital-only credit cards. The country’s strong digital infrastructure, coupled with a population that is increasingly comfortable with digital payments, creates a fertile environment for these innovations. However, the transition to fully digital credit cards will require ongoing education, enhanced security measures, and continuous improvements in user experience to ensure widespread adoption.
While there is still a segment of the population that relies on physical cards, the overall trajectory suggests that digital-only credit cards will play a significant role in the UAE’s future financial landscape. With options like the Liv. World, Mashreq Neo, and ADCB Hayyak credit cards are already available, the shift towards a fully digital experience is not just a possibility—it’s a likely future reality.
