Online and digital payments space booms in MENAP region
The e-commerce and digital payment industries in the Middle East & North Africa, Pakistan (MENAP) region are set for major growth in 2021, according to research by Checkout.com.
The company polled more than 5,000 consumers in September 2020 in the UAE, Saudi Arabia, Egypt, Jordan, Qatar, Kuwait, Bahrain, and Pakistan.
The region has historically been dominated by cash payments. However, across the aforementioned eight countries, 47% of people expect to shop online more frequently over the next year. Only 15% expect their online shopping frequency to decline, while the remaining 38% say it will remain about the same as now.
The coronavirus pandemic is accelerating growth particularly in the online purchases of prepared meals, clothing, groceries and electronics. 53% of the region’s consumers most often pay for said purchases using digital payments rather than cash on delivery (36%) or bank transfers (10%).
“While there has been a sudden surge in e-commerce and digital payments this year due to the impact of Covid-19, our report suggests what we are seeing today is more than a temporary change in consumer behaviour,” says Sebastian Reis, EVP of Global E-commerce at Checkout.com.
“Our internal data shows an 86% increase in digital payment transactions on our platform since the start of the pandemic in the region. This presents a major opportunity for businesses across the MENAP region.”
He concludes: “However, to leverage this shift in consumer behaviour and to succeed in what’s already a highly competitive space, businesses will need to offer not only the products and services consumers look for, but also the best online shopping experience, including payment processes that are safe, secure, and convenient for consumers.”
