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Digital payments in the MENA region have grown rapidly over the years, as digital commerce adoption accelerates in the region and consumer preference for online shopping continues, according to research by fintech company Checkout.com. This is said to be due to the increasing number of people.
Checkout.com's total transaction value has surged a whopping 658% since the start of the pandemic, with a year-over-year (YoY) increase of 78% over the past two years.
The report highlighted that the preference for cash on delivery (COD) in the MENA region has halved from 41 percent to 20 percent in the past 48 months, due to wider acceptance of digital payments, cards and digital wallets.
The shift to digital payments is more pronounced in Saudi Arabia, the United Arab Emirates and Kuwait, where preference for cash has fallen significantly to just 10 percent.
However, the payment processor said that with 33% of MENA consumers falling victim to digital payment fraud, there is an understandable focus on security.
MENA’s booming e-commerce sector
Meanwhile, Checkout.com said the number of MENA consumers participating in e-commerce transactions weekly or more has increased by 56% since 2020.
Saudi Arabia leads the growth in e-commerce with a 180% increase in the number of consumers shopping online at least once a week, followed by the UAE and Kuwait, which recorded a 140% increase in online shopping activity. Masu.
MENA consumers are optimistic about the future of online spending, with half of shoppers surveyed expecting their online shopping budget to increase over the next 12 months, the report said. Online shoppers in Saudi Arabia are showing great enthusiasm, with 53% expecting their spending to increase next year.
The MENA region offers enormous opportunities for global brands looking to expand and develop new businesses in the market, despite the impact of inflationary pressures and technological downturns.
Checkout.com said the projected spending increase highlights the resilience and robustness of the MENA region's digital economy.
