More unique shoppers, a soaring BNPL market, and increased travel transactions are among the findings in Checkout.com’s latest analysis.
Middle East – September 12, 2024: Consumers’ preferences for digital payment methods have deepened over the summer period in the UAE and Saudi Arabia, according to new data from global payments solution provider Checkout.com. The company’s latest analysis highlights a rise in unique online shoppers, the growing popularity of Buy Now, Pay Later (BNPL) options, and increased consumer confidence in key industries such as travel.
The MENA region’s overall embrace of digital commerce has been well documented, with earlier Checkout.com data showing a 56% increase in consumers engaging in e-commerce weekly since 2020. Moreover, this summer’s analysis reveals a 26% year-on-year rise in the number of unique cards used for online purchases in the UAE and Saudi Arabia between July and August, suggesting that more people are going online for purchases. This underscores the unmistakable demise of cash as the region’s preferred payment method, with the preference for cash dropping to as low as 10% among the population in the UAE and Saudi Arabia.
Meanwhile, the summer period witnessed a surge in the adoption of Buy Now, Pay Later (BNPL) services among consumers. The use of BNPL payments in the UAE and Saudi Arabia skyrocketed by 200% between July and August compared to the same period in 2023. This growth - evident in transactions processed by Checkout.com for merchants like Tamara and Tabby - underscores consumers’ increasing demand for flexible payment plans, and why merchants can no longer afford to miss offering this rapidly growing finance option to their customers.
While the digital payments landscape is undoubtedly maturing, usage has been especially pronounced in key industries like travel. Competition in the online travel sector has always been tough, with thin margins and merchants challenged to manage transactions across a global ecosystem. Yet online payment transactions in the category grew by a significant 48% across the UAE and Saudi Arabia in July and August compared to the same period in 2023. This growth suggests increased consumer confidence in the security, speed, and convenience of digital payment solutions that merchants offer in the travel space.
Remo Giovanni Abbondandolo, General Manager, MENA at Checkout.com, notes: “As economies in the region continue to diversify and digitize, these insights underscore the immense opportunity now available to merchants to leverage payment innovations to drive better performance and enhance their revenue.”
These findings come as a continuation of Checkout.com's commitment to tracking digital payment trends in the MENA region, building upon insights from its recent report, "The State of Digital Commerce in MENA 2024: A Tale of Rapid, Sustained Growth".
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