One of the leading financial institutions in the United Arab Emirates, Mashreq, announced on Wednesday that it will be launching a new credit card known as the Mashreq Cashback Credit Card.
The Mashreq Cashback Credit Card is being launched via the Visa Platinum Platform, and it will be the only such card to reward cardholders with unlimited 5% cashback on dining, 1% on domestic purchases, and 2% on international purchases.
There will also be no annual fee associated with the new credit card.
The card is genuinely unique because of its absolute simplicity, with no restrictions, conditions or caps, making it clear and transparent and easily understandable by all customers.
Mashreq’s newest cashback offering follows an extensive bout of customer research and has been launched to keep in mind changing customer habits.
A large portion of the millennial generation is spending more and more money online, according to a ‘Youth in the UAE’ survey published by Visa.
The survey data found that millennials and those in Generation Z (people between the ages of 18 and 35) make up nearly two-thirds of the current population of the UAE, and often conduct their shopping via the internet.
The survey also revealed that one in five dollars that is spent in the country goes towards the consumption of food.
The amount of money spent on food in the UAE also increased by as much as 8% last year in comparison to 2018.
There has also been a move toward the fast-service restaurant sector, which includes food delivery services, with the industry experiencing growth as high as 40%.
Mashreq’s retail banking group head Subroto Som says that the bank strongly emphasises understanding what is really wanted by customers and delivering the best customer experience possible.
The UAE is likely to become a cashless society sooner rather than later, Som believes, with estimates by the industry suggesting that there will be a drop of 26% in everyday cash transactions by as early as next year.
Mashreq believes that its latest proposition is aligned with this trend and the bank’s overall strategy for digitisation, and that its complete transparency will make the card very valuable to customers.
The cashback solution will see customers reaping unmatched benefits on lifestyle spending all across the board with no conditions or caps, especially when dining or travelling, Som says.
Mashreq’s head of payments Kartik Taneja says that the bank wants to make the pleasant experience of dining out with friends and family extra rewarding with the 5% cashback offer.
Taneja notes that there are 2.5 million millennials in the UAE, and 98% of them use the internet every single day of their lives.
Spending on dining by members of that generation is 47% higher than was the case with previous generations, mainly because 50% of that money is used for the purposes of online delivery.
The new cashback credit card will be able to meet the expectations of such customers both with the cashback offers and the completely paperless digital experience, Taneja claims.