Checkout.com, a leading global payment solution provider, had released a report indicating major growth in the e-commerce and digital payment industries in the Middle East & North Africa, Pakistan (MENAP) region for the year 2021.

Previously dominated by cash payments, the region now shows opportunities for the digital payments industry as online customers prefer digital payments in comparison to cash on delivery.

The findings were based on insights from over 5,000 consumers from UAE, Saudi Arabia, Egypt, Jordan, Qatar, Kuwait, Bahrain, and Pakistan in September this year.

According to the report, 47 percent of consumers are expecting to shop online more frequently over the coming year. Moreover, only 15 percent expect their online shopping frequency to decline, while the remaining 38 percent expect it to remain about the same as now.

The increase in digital payments is fairly consistent across all the surveyed countries, with 49 percent of GCC consumers stating that they will be shopping online more often.

“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 behavior. Our internal data shows an 86% increase in digital payment transactions on our platform since the start of the pandemic in the region,” said Sebastian Reis, EVP of Global E-commerce at Checkout.com.

“This presents a major opportunity for businesses across the MENAP region. However, to leverage this shift in consumer behavior 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.” 

It has been identified that the COVID-19 pandemic is a driving factor for the rise in online shopping and digital payments in the region, with over 40 percent of consumers stating that they shop and pay online because of it.

Over 45 percent have been purchasing products and services online more frequently during the start of the pandemic. Purchase of prepared meals (41 percent), apparel (37 percent), groceries (33 percent), and electronics (30 percent) have seen significant growth during the pandemic.

The statistics indicate a fair share of online purchases between men and women in prepared meals and groceries. On the other hand, growth in e-commerce is predominantly contributed by men whereas, women account for a stronger increase in online apparel purchases.  

The study showed that the payment process is central to the online shopping experience of customers, with the payment process ranking higher than fast shipping or an easy return policy. 2020 is a significant year for many local and global merchants as a highlight in ‘The Connected Payments in MENAP’ report, requiring many cash-orient countries to switch to digital payment overnight.   

The report provides more useful insights on e-commerce and digital payments in the MENAP region. You can click here for the full report.

---

Make sure to check out our social media to keep track of the latest content.

Instagram - @qatarliving

Twitter - @qatarliving

Facebook - Qatar Living

YouTube - qatarlivingofficial