According to the press release, The Connected Payments in MENAP report also reveals that the region, which has historically been dominated by cash payments, presents a significant growth opportunity for the digital payments industry as the region’s online shoppers now prefer using digital payments rather than paying by cash on delivery. The report draws insights from a regional survey, which polled more than 5,000 consumers in September 2020 in the UAE, Saudi Arabia, Egypt, Jordan, Qatar, Kuwait, Bahrain, and Pakistan.
Across the eight countries, 47% of consumers say they expect to shop online more frequently over the next year. Only 15% expect their online shopping frequency to decline, while the remaining 38% expect it to remain about the same as now. The likely surge in ecommerce and digital payments in 2021 is consistent across the countries surveyed, from 49% of the GCC consumers saying they will shop online more frequently, to 48% in Jordan, 47% in Egypt, and 39% in Pakistan.
Online merchants can expect certain demographic groups to drive growth more than others, particularly the most affluent consumers (56%), those already shopping online at least on a monthly basis (55%), men ages 35 and older (55%), and those using digital payments rather than cash or bank transfers to pay for their online purchases (54%).
The report further reveals that 53% of the region’s consumers most often pay for their online purchases using digital payments rather than cash on delivery (36%) or bank transfers (10%). Digital payments are by far the most preferred payment method with online shoppers in the GCC, including Bahrain (74%), Qatar (66%), the UAE (64%), Kuwait (59%), and Saudi Arabia (54%). Meanwhile, cash on delivery is the preferred payment method in Pakistan (66%), Egypt (54%), and Jordan (51%).
Furthermore, preference for digital payments over cash on delivery or bank transfers rises significantly as consumers shop online more frequently. Among those who shop online at least once a month, 62% usually pay by card or digital wallet, versus 44% among the less frequent online shoppers.
Overall, regardless of how one pays for their online purchase, the report makes it clear that the payment process is central to the online shopping experience in the region. Nearly 48% of online shoppers across the region say that a safe, secure, and convenient payment process is the most important factor for their online experience aside from price. Payment process ranks higher than fast delivery/shipping (32%) or an easy return process (15%).
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