Visa announced that it embraces the UAE Central Bank’s move to increase the Card Verification Method (CVM) limit for contactless transactions in UAE to AED 500 (from AED 300).
Contactless technology presents the fastest, most convenient, and highly confident way to pay for both users and merchants, enabling simple ‘tap’ payments. The 67% increase in the PIN-free transaction limit will allow users to simply tap-to-pay utilizing their card, mobile phone, or a wearable device for larger purchases. Visa is operating closely with local bank partners and merchants to perform the new limit on Visa contactless cards in the UAE.
This move is in order with similar changes in the Middle East and North Africa region, where Visa has been working with local governments to raise the limits to support the growing appetite for contactless payments.
According to a 2019 Visa-DED Stay Secure analysis, about 80% of people in the UAE who already use contactless payment technology support this payment method. With more than 50% of card transactions in the UAE already contactless, the accession in PIN-free transaction limits will proceed to enhance the users’ shopping experience and strengthen their trust in the technology.
Shahebaz Khan, Visa’s General Manager for the UAE, stated: “The UAE Central Bank’s determination to increase PIN-free limits for contactless transactions in the country will allow larger everyday purchases to be made using this fast, easy and secure way to pay. It will even further assist merchants and front line personnel working through these challenging times.”
Visa has been actively operating with governments across MENA in facilitating the growth in contactless usage. Central banks in Saudi Arabia, Kuwait, Bahrain, and Egypt have raised the limits on contactless transactions before a PIN is required, effectively increasing the speed and convenience of contactless to larger purchases.