Governmental initiatives across the Middle East and North Africa (MENA) are successfully encouraging consumers to adopt digital payments, while the region is also quickly aligning with global standards, payment solutions provider Checkout.com has revealed.
In its fourth annual report on digital commerce, ‘The State of Digital Commerce in MENA 2024: Perspectives from the Leading Edge‘, Checkout.com features thought leadership and insights from key players at the forefront of MENA’s digital economy who reflect on the dynamics that have shaped e-commerce, fintech, and payments over the past 48 months, and the impact they have had on the e-commerce landscape throughout the region.
The robust growth of digital commerce in MENA in recent years saw digital payment volumes grow by 658 per cent since 2020, according to Checkout.com processing data. In its ‘The State of Digital Commerce in MENA 2024‘ report, it also highlights the impressive 80 per cent growth since 2020 in the number of MENA consumers who report shopping online at least once a day.
“Our consumer and transaction data underscores how MENA’s traditionally cash-centric society has now become a leading digital-first market in just a few years,” said Remo Giovanni Abbondandolo, general manager for MENA at Checkout.com. “Consumers are increasingly seeking choice and control in their shopping, payment, and money transfer experiences, which merchants and fintechs are beginning to recognise as a competitive advantage.
“As governments in the region implement forward-thinking policies, the interplay between regulation and businesses becomes increasingly vital. The insights shared by our contributors highlight that a cohesive approach involving all stakeholders – governments, businesses, and consumers – is essential to harness the full potential of MENA’s digital economy.”
Positive signs for e-commerce
When it comes to e-commerce, consumers in MENA show an optimistic outlook on their future online spending. Checkout.com data suggests that half of all shoppers in MENA anticipate increasing their online spending this year. The increased preference for digital payment methods reflects a profound shift towards convenience and efficiency in everyday transactions.
“The widespread adoption of digital solutions is not merely a trend; it has become a defining characteristic of the region. The clear efficiencies and conveniences offered by digital solutions are driving this transition,” says Imad Gharazeddine, CEO at Mamo, a Dubai-based payment platform.
The region’s large expatriate population is also influencing the development of digital payments. According to Checkout.com data, total payment volumes for remittances and money transfers in MENA grew six-fold between January and December 2023, and the introduction of Account Fund Transfers (AFT) has fundamentally changed how remittances are processed.
Going all-in on digital payments
The region has achieved 91 per cent digital payment adoption, highlighting the success of the regional government’s efforts to encourage consumers toward a more digital approach.
Gül Kılıç, head of payments, EMEA at Trendyol Group, notes that governments’ significant investments in payment systems not only reflect a commitment to modernisation but signal an alignment with global standards, creating “a fertile environment for digital businesses”.
However, some of the report’s contributors believe that collaboration among countries in the region holds great promise for creating a more integrated financial landscape. Establishing a unified system akin to other regions could streamline processes, enhance cross-border transactions, and promote greater financial inclusion.
“A more unified regulatory framework across MENA would facilitate smoother e-commerce operations and foster a more attractive investment climate,” explains Amnah Ajmal, EVP of market development, EEMEA, Mastercard.
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