Visa has officially launched its new offering, Visa Private, aimed at affluent cardholders in the United Arab Emirates (UAE). Announced on September 15, 2023, this initiative is part of a strategy to provide enhanced services and benefits that cater specifically to high-net-worth individuals. Following its introduction in the UAE, Visa plans to expand the offering throughout the broader Gulf region.
The UAE is projected to attract an estimated 9,800 millionaires by 2025, the highest figure globally. Visa Private is designed to assist issuing banks in addressing the sophisticated needs of wealthier users, which extend beyond standard payment functionalities. “By giving high-net-worth individuals a seamless way to pay and a richer set of experiences when they do, we are helping our partners deepen customer relationships and supporting the UAE government’s wider digital commerce agenda,” explained Yuri Topunov, Visa’s Vice President and Head of Products and Solutions for the Middle East and North Africa.
Exclusive Benefits for High-Net-Worth Individuals
Visa Private offers an array of exclusive benefits tailored for affluent cardholders. These include complimentary access to lounges for cardholders and two guests, year-round discounts at select fine-dining venues and beach clubs across the Gulf Cooperation Council (GCC) countries, and a complimentary hotel night stay at over 20 premium hotels.
This launch comes as credit card companies increasingly focus on catering to ultra-wealthy clients. A recent report by the New York Times highlights a trend in which travel cards are now associated with higher annual fees. The report indicates that the benefits of these cards can make it challenging for consumers to access premium services, such as business class seats. “We are at some kind of inflection point,” stated Clint Henderson, Managing Editor at The Points Guy. “It’s getting harder and harder for consumers to win. That’s true of the credit cards, that’s true of elite status, that’s true of loyalty.”
Changing Preferences Among Cardholders
Research conducted by PYMNTS Intelligence reveals that 48% of credit cardholders prioritize rewards or discounts when selecting their primary card. This trend is particularly pronounced among younger generations; members of Generation Z utilize, on average, 30% of their available credit on their main credit card, while millennials use around 27%. In contrast, older generations tend to distribute their spending across multiple cards or rely more on debit and checking accounts.
The findings suggest a significant opportunity for financial institutions and FinTech companies to deliver smarter, targeted rewards. This approach could not only attract new customers but also foster long-term loyalty among cardholders who are increasingly selective about their financial products.
As Visa Private begins its rollout in the UAE, it reflects a broader industry trend towards personalized banking experiences designed to meet the evolving demands of wealthier clients.
