- 658% growth in regional payment volumes
since 2020, with a 78% YOY increase
- 180% growth in consumers shopping online at
least once a week in Saudi Arabia
and 140% in UAE and Kuwait
- Preference for cash on delivery in the region halves from
41% in 2020 to 20% in
2023
- 33% of MENA consumers report
they've been a victim of payment fraud
- Third of all MENA shoppers would shift to a
competitor website following a single failed payment
DUBAI, UAE, May 14, 2024
/PRNewswire/ -- Amidst an era marked by swift digital
transformation, the digital economy in the MENA region demonstrates
robust growth, soaring by an impressive 78% year-on-year in
digital payment volumes since 2020. These revelations and more are
unveiled in Checkout.com's 4th annual MENA e-commerce report,
titled: "The state of digital commerce in MENA 2024, A tale of
rapid, sustained growth," launched this morning.
48 months of exponential growth
The report highlights
unprecedented growth in the MENA region's digital payment volumes,
as Checkout.com's total processing value witnessed a staggering
658% surge since the onset of 2020. Notably, a remarkable
78% year-on-year growth between 2022 and 2023. This surge is
a testament to the region's accelerated adoption of digital
commerce, which continues to see a deepening consumer preference
for online shopping.
Innovations such as AFT (Automated Funds Transfer) have played a
pivotal role in facilitating this trend. Furthermore, the growth
momentum of Checkout.com processing volumes is underscored by it
securing its acquiring license in the UAE in 2023. As Checkout.com
continues to expand, its trajectory mirrors the overall upward
trajectory of digital commerce in the region
The findings also shed light on a robust increase of 56%
in the number of MENA consumers engaging in e-commerce weekly or
more since 2020. Furthermore, the growth rate for daily digital
shoppers in MENA surged by 80% with Saudi Arabia leading the digital shopping
spree with an astounding 180% growth in consumers shopping
online at least once a week, followed closely by the UAE and
Kuwait, each experiencing a
140% growth. This data underscores the deep and consistent
change in online shopping habits among consumers in the region,
which in turn demonstrates an increased trust in the system; a
barrier to adoption noted in the 2020 report.
Additionally, the report highlights MENA consumers' optimistic
outlook on their future online spend, revealing that half of all
shoppers anticipate an increase in their online spending over the
next 12 months. Particularly, online shoppers in Saudi Arabia express significant enthusiasm,
with 53% anticipating an increase in their spending in the
coming year.
The increase in predictive spending demonstrates that there is
resiliency and robustness to the digital economy in the MENA
region. Despite increasing inflationary pressures and technical
recessions breaking out across other developed economies, MENA
presents an oasis of opportunity for global brands to expand and
develop new operations in the market.
The unmistakable demise of cash
Discussing the
payments landscape, the report marks a significant shift away from
cash on delivery towards digital payment methods. Over the
past 48 months, the preference for cash on delivery in the region
has halved from 41% to 20%, reflecting broader
acceptance and trust in digital payments, cards, and digital
wallets. This shift is notably pronounced in countries like
Saudi Arabia, UAE, and
Kuwait, where the preference for
cash has dropped to as low as 10% among the population.
This presents a unique chance for businesses to keep their costs
down. With new technologically advanced payment solutions that
present a more scalable and consumer-friendly experience. The
previously increasing complexity and cost of operations, such as
cash management and shipping logistics, for businesses in the
region will continue to decline.
Payment security is the key loyalty driver
The report
reveals that the number of respondents ranking payment security as
the most important feature offered by an e-commerce business is
growing exponentially. Furthermore, the silent revenue killer,
namely false declines, continues to grow in the region with
23% reporting experiencing a falsely declined payment in the
last three months. Moreover, 33% of MENA consumers report
being victims of payment fraud, and understandably, security is
valued. Alarmingly, a third of all shoppers surveyed indicated they
would switch to a competitor's website following a single failed
payment.
Remo Giovanni Abbondandolo,
General Manager, MENA, at Checkout.com, reflects on these
findings: "The sustained growth and rapid evolution of digital
commerce in MENA are reshaping how consumers shop and pay. Our
report not only highlights the remarkable strides in digital
payment adoption but also signals a growing confidence among
consumers in the digital economy.
"This report makes a case for the continued need for fintechs to
analyze and optimize every aspect of their e-commerce experience as
consumers become more deeply connected to digital shopping and
payments. As our report identifies, a third of all shoppers
surveyed would switch to a competitor if they experienced a single
failed payment. So the cost of getting your payment performance
wrong has never been higher. That's why as a payment solution
provider to businesses across the region and globally, Checkout.com
drives performance in this dynamic landscape," he added.
As Checkout.com continues to chart the course of digital
commerce in MENA, the "The state of digital commerce in MENA
2024, A tale of rapid, sustained growth" report offers
invaluable insights for merchants, policymakers, and stakeholders
aiming to capitalize on the opportunities presented by this digital
evolution.
Checkout.com, a leading global payment solutions provider, has
diligently tracked the booming e-commerce landscape in the region
for the past four years. The latest report delves into a
retrospective analysis of 48-month trends, calculating growth rates
to grasp the magnitude of change in digital commerce within
MENA.
About Checkout.com
Checkout.com processes
payments for thousands of companies that shape the digital economy.
Our global digital payments network supports over 145 currencies
and delivers high-performance payment solutions across the world,
processing billions of transactions annually.
With flexible and scalable technology, we help enterprise
merchants boost acceptance rates, reduce processing costs,
combat fraud, and turn payments into a major revenue
driver. Headquartered in London and with 16 offices worldwide,
Checkout.com is trusted by leading brands such as Alshaya
Group, Botim, Dyson, Hunger Station, Instashop, Qlub, Majid Al Futtaim, Netflix, SHEIN, Sony and
Tamara.
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