Mastercard has joined forces with the GCC fintech platform Tamara to launch a virtual card in the UAE, aiming to enhance the split payment landscape. This collaboration enables Mastercard to solidify its presence in the flexible payment and lending arenas, offering cardholders the option to divide payments at checkout. According to a report by Ken Research, the transaction value of flexible payment services in the UAE is projected to reach USD 14.7 billion by 2027, fueled by the booming e-commerce sector and digital payment solutions. This potential growth marks a significant shift in the financial landscape, driven by customer preference for more adaptable payment choices.
The virtual card lets users divide purchases into four equal payments or pay in full through mobile wallets for both online and in-store purchases, adhering to Sharia compliance. Users get instant access to a Tamara and Mastercard prepaid card, which can be linked to mobile wallets for convenient tap-to-pay transactions at retail outlets. This initiative aims to offer more payment options globally and within the UAE, utilizing Mastercard’s wide network to ensure simple and secure payment experiences for merchants and lenders alike. With growing consumer awareness in the GCC about split payment solutions, Mastercard and Tamara are dedicated to making shopping more flexible. They plan to introduce more innovative products and solutions as their partnership grows.
The collaboration between Mastercard and Tamara highlights a trend towards the acceptance and integration of flexible payment options. The rise in e-commerce and digital payments underscores the need for adaptable financial solutions due to cultural compliance and financial inclusivity. As the UAE’s market for flexible payments continues to grow, the Mastercard and Tamara virtual card stands out as a crucial tool for both consumers and businesses.