MENA’s Digital Economy Surges: Checkout.com Report

Checkout.com’s 4th annual MENA report uncovers a significant transformation in payment preferences amidst the region’s maturing digital economy. The report, titled “The State of Digital Commerce in MENA 2024: A Tale of Rapid, Sustained Growth,” reveals a remarkable 78% year-on-year surge in digital payment volumes since 2020, indicating robust growth in the region’s digital economy.

Key findings include a staggering 658% increase in Checkout.com’s total processing value since 2020, highlighting the accelerated adoption of digital commerce in MENA. Innovations like Automated Funds Transfer (AFT) have facilitated this trend, with Checkout.com securing its acquiring license in the UAE in 2023 to further expand its services.

Moreover, the report highlights a significant rise in the number of MENA consumers engaging in e-commerce weekly or more, with Saudi Arabia leading the digital shopping trend. The data underscores a deepening trust in online shopping, with half of all shoppers anticipating increased online spending in the next 12 months, particularly in Saudi Arabia.

A notable shift away from cash on delivery towards digital payment methods is observed, with cash preference halving over the past four years. This presents an opportunity for businesses to streamline operations and reduce costs with technologically advanced payment solutions.

Payment security emerges as a key loyalty driver, with consumers increasingly valuing secure payment experiences. However, false declines and payment fraud remain concerns, emphasizing the importance of optimizing e-commerce experiences to retain customers.

Remo Giovanni Abbondandolo, General Manager for MENA at Checkout.com, emphasizes the report’s insights into the evolving digital commerce landscape and the need for fintechs to prioritize payment performance. As Checkout.com continues to lead in digital commerce, the report provides invaluable insights for merchants, policymakers, and stakeholders looking to capitalize on the region’s digital evolution.