Online retail fuels MENA digital payments, Checkout.com says

Digital payments in the MENA region have grown exponentially over the years, according to a study by fintech firm Checkout.com, driven by the region’s accelerated adoption of digital commerce, which continues to see a deepening consumer preference for online shopping.

Checkout.com’s total processing value has witnessed a robust 658 per cent surge since the onset of the pandemic or 78 per cent year-on-year (YoY) growth over the past two years.

The report highlighted that the preference for cash on delivery (COD) in the MENA region has halved from 41 per cent to 20 per cent over the past 48 months, driven by a broader acceptance of digital payments, cards and digital wallets.

The shift to digital payments is more pronounced in Saudi Arabia, the UAE and Kuwait – where the preference for cash has dropped significantly to as low as 10 per cent.

However, the payments processing firm said 33 per cent of MENA consumers have been victims of digital payments fraud and understandably, security is valued.

MENA’s buoying e-commerce sector

Meanwhile, Checkout.com said the number of MENA consumers engaging in e-commerce weekly or more has increased by 56 per cent since 2020.

Saudi Arabia leads the growth in e-commerce with a 180 per cent growth in consumers shopping online at least once a week, followed by the UAE and Kuwait, each registering a 140 per cent increase in online shopping activity.

The report said MENA consumers are optimistic about future online spending, with half of the surveyed shoppers anticipating an increase in their online shopping budget over the next 12 months. Online shoppers in Saudi Arabia express significant enthusiasm, with 53 per cent projecting an increase in their spending next year.

The MENA region offers vast opportunities for global brands seeking to expand and develop new operations in the market, despite the impact of inflationary pressures and technical recessions.

Checkout.com said the increase in predictive spending underscores the resiliency and robustness of the digital economy in the MENA region.

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