The Arab world hails ecommerce market development - report

Thursday 12 June 2014 00:44 CET | News

The Arabian countries witness a skyrocketing ascension of the ecommerce sector, according to the Arab World Online Payment Report 2014 released by the online payment gateway and payment solution provider PayFort, reports.

The report in question analyses four Arab markets: UAE, Saudi Arabia, Egypt and Kuwait.

In the UAE, the report notes, 60% of the 3.65 million ecommerce customers are located in Dubai, while another 27% are in Sharjah and Abu Dhabi collectively. In Egypt, 27% of ecommerce purchases are paid for with a credit card, while cash-on-delivery comes next.

Average cash-on-delivery (COD) orders decreased from USD 114 in 2013 to USD 113 in 2014, meaning a 0.8% fall. However, credit card orders increased from USD 155 in 2013 to USD 168 in 2014, meaning a 49% rise. Overall, there was an increase in ecommerce basket size in the UAE.

Saudi Arabia witnessed an increase of 8% for cash-on-delivery orders from USD 143 in 2013 to USD 154 in 2014. Meanwhile, credit card orders increased by 32%, from USD 96 in 2013 to USD 127 in 2014.

In Egypt, an increase of 16% in cash-on-delivery orders was recorded, from USD 83 in 2013 to USD 96 in 2014. Credit card orders went up by 36%, from USD 71 in 2013 to USD 96 in 2014.

36% of consumers appealed to m-commerce websites to save items in their shopping cart for use later at a brick-and-mortar store. Customers in the four countries transact via mobile more than the global average, with 41% as compared to 21.3% global average.

Customers aged between 18 and 26 make up the largest demographic group of mobile payment users with 39% of the market. This category is expected to reach USD 2.45 trillion in transactions worldwide by 2015.

Customers aged between 27 and 39 come next, with 31% of the market, followed by customers aged between 40 and 61 with 26%, and 62 and older with 3% of the market.

Check out our Cross-border Ecommerce Research section here for more info on country-specific ecommerce facts & figures, preferred payment methods, risk and fraud, as well as ecommerce legislation & regulation for mature and emerging markets.

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Keywords: Arab World, Egypt, UAE, Kuwait, ecommerce, online payments, credit card, online sales, online parchases
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce

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