The Covid-19 crisis may have kicked off a surge in online shopping in the Middle East and North Africa, but e-commerce and digital payments are here to stay an in for a massive boost in 2021, according to new research.
Checkout.com, the payment company that picked up $150m in a Series B funding round as well as a $5.5bn valuation in June, conducted the research.
Having polled more than 5,000 consumers in the UAE, Saudi Arabia, Egypt, Jordan, Qatar, Kuwait, Bahrain, and Pakistan, Checkout.com saw that 47% said they expect to shop online more frequently over the next year.
A mere 15% expect their online shopping frequency to decline, while the remaining 38% expect it to remain about the same as now.
The research also highlighted that rich people, those already shopping online and men over the age of 35 would be the key drivers behind the growth of digital payments and e-commerce in the region.
“While there has been a sudden surge in e-commerce and digital payments this year due to the impact of Covid-19, our report suggests what we are seeing today is more than a temporary change in consumer behaviour,” said Sebastian Reis, EVP of global e-commerce at Checkout.com.
“Our internal data shows an 86% increase in digital payment transactions on our platform since the start of the pandemic in the region. This presents a major opportunity for businesses across the MENAP region.
“However, to leverage this shift in consumer behavior and to succeed in what’s already a highly competitive space, businesses will need to offer not only the products and services consumers look for, but also the best online shopping experience, including payment processes that are safe, secure, and convenient for consumers.”
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