Research by global payment specialist Checkout.com finds a thriving ecommerce environment across the Middle East, North Africa and Pakistan.
Checkout.com’s research on ecommerce and digital payments in the Middle East, North Africa and Pakistan (MENAP) shows strong potential for growth in the region. The region is dynamic and a digital revolution is underway thanks to governmental support for the development of financial infrastructure and changing customer behaviour.
The company’s second annual report on the region surveyed 13,000 consumers and revealed the following key points:
Digital commerce on the rise
Survey respondents are increasingly using digital commerce for a wide range of goods and services, including everyday items such as meals and groceries. The research also shows that 83% of consumers intend to maintain their current levels of ecommerce spending even as physical stores reopen. If this occurs, MENAP will remain the world’s fastest-growing ecommerce market, worth over $49 billion, according to Visa.
Digital wallets and deferred payments increase
Consumers are moving away from cash-based payment methods in favour of digital payments as they shop online. This includes innovative payment methods like buy now, pay later (BNPL). In the past year, 24% of consumers have used BNPL, according to the research.
Digital wallets are also increasingly common. These allow the unbanked and underbanked to spend, widening the market for businesses of all kinds. Digital wallets are expected to continue growing as financial authorities work to increase competition for financial services.
New storefronts
Digital commerce is allowing companies to reinvent how they interact with consumers. Consumers are increasingly using social media and apps as their main shopping channels. As a result, in-channel payment options are critical to business in the region.
Businesses are also reimagining their physical spaces. Click and Collect services are increasingly common and many brands are focusing on omnichannel approaches due to demand for personalisation, convenience and human-centric customer service; as a result, companies are making use of channels such as WhatsApp to communicate with customers.
Trust is vital
Alongside the rise of digital shopping is the rise of fraud. Consumers are aware of the risks and prioritise security, rather than the speed when at the checkout. 81% of consumers regularly check the encryption of sites or apps before purchasing, according to Checkout.com. 81% do every time they shop.
These findings indicate that businesses must find a balance between security and speed at the checkout to earn a competitive advantage and the consumers’ trust.
Digital payments are key to growth in the MENAP region
Digital payments and ecommerce have enabled higher levels of cross-border trade. Consumers are increasingly buying from companies outside of their national market. 33% of consumers indicated that they bought goods unavailable at home from online stores.
Governments are eager to invest in digital payments to further this trend and consumers are positive about how global events, such as the World Expo and World Cup, might open up new markets.
The vast potential of digital payments make it an area of interest for organisations of all kinds and creating reliable, secure platforms will be key to taking advantage of the increasing interest.
