28 October 2024, Mon |
3:30 AM
Checkout.com has unveiled phase two of its fourth annual report on digital commerce in the MENA region, titled “The State of Digital Commerce in MENA 2024: Perspectives from the Leading Edge”. The report provides insights from industry leaders who reflect on the key trends shaping e-commerce, fintech, and payments over the last 48 months, highlighting their impact on the region’s digital landscape.
As consumer demand for digital commerce surged, innovation in payments and fintech, regulatory advancements, and money movement solutions accelerated, enabling businesses to embrace faster and more secure digital payments. Key contributors in the report emphasize strategies that helped companies navigate this transition, such as leveraging innovative platforms to expand their reach. The role of governments in supporting digital transformation and fostering regional interconnectivity is also highlighted, alongside recommendations for enhancing fraud detection and refining financial regulations.
According to Checkout.com’s processing data, digital payment volumes have soared by 658% since 2020. The report also reveals that the number of MENA consumers shopping online daily has increased by 80% since 2020, signaling a shift from the region’s traditionally cash-based society to a digital-first market.
Remo Giovanni Abbondandolo, General Manager for MENA at Checkout.com, notes, “MENA’s rapid digital transformation underscores the importance of adaptability, resilience, and collaboration among stakeholders—businesses, governments, and consumers—to fully harness the potential of the digital economy.”
The report highlights that half of MENA consumers plan to increase their online spending this year, driven by the convenience and efficiency of digital payments. Imad Gharazeddine, CEO of Mamo, and Islam Abdul Karim, General Manager of Yango GCC, echo the significance of seamless user experiences and streamlined payment processes in fostering growth.
Additionally, the region’s large expatriate population has fueled the growth of digital payments for remittances, with volumes growing six-fold between January and December 2023. The introduction of Account Fund Transfers (AFT) has revolutionized the remittance landscape, with Amine Sabri, Group CFO at Astra Tech, anticipating further growth due to technological advancements.
Efforts to promote financial inclusion are also driving the rise of contactless and mobile payment methods, with Checkout.com data showing significant growth in Apple Pay and Google Pay processing volumes. However, the report points to the need for standardized regulations across the region to boost financial inclusion and enhance digital education for SMEs.
With 91% of digital payment adoption in MENA, governments are making strides in modernizing payment systems and aligning with global standards. Gül Kılıç, Head of Payments – EMEA at Trendyol Group, highlights the potential for regional collaboration to create a more unified financial landscape, streamline cross-border transactions, and improve the investment climate.
Checkout.com’s full report, featuring insights from key industry figures, is available for download, offering a comprehensive look at the digital commerce revolution in the MENA region.
