Saudi Arabia leads region in online
transactions, with 27% year-on-year growth
Dubai, UAE – 15 October 2017 – PAYFORT, an Amazon company, has announced its fourth “State of Payments in the Arab World” report
in a new interactive format, offering up-to-date data and analysis on the region’s
payment trends and consumer buying habits. Based on the study of seven key
countries for the regional payment industry, the region saw an overall 22
percent increase in online transactions during 2016, led by strong growth in
Saudi Arabia, Egypt and the United Arab Emirates,
showing 27 percent, 22 percent and 21 percent year-on-year growth
respectively. Meanwhile, the report identifies ‘Events and Entertainment’ as
the fastest growing payments sector showing annual 33 percent growth from 2015
to 2016.
The new edition of PAYFORT’s State of
Payments in the Arab World has been completely redeveloped to deliver a
fully-customisable, interactive report. The new interactive report allows
readers to create their own customised report to show different data and
insights on seven key countries (Egypt, Jordan, Kuwait, Lebanon, Qatar, Saudi
Arabia and the UAE) and four key online payment segments: airline, travel,
ecommerce (online shopping) and entertainment sectors.
“Our 2017 edition of the State of
Payments report marks the most dramatic change to the report since we launched
the project in 2014,” said Omar Soudodi, Managing Director of PAYFORT.
“Each year we’ve worked hard to ensure that the report delivers more value than
the last, shedding light on real issues for the region’s online business
merchants. However, this year we put the control in the hands of our readers, providing
them with interactive tools that allow them to easily adapt the data sets for
their own needs and business decision making.”
One of PAYFORT's new study objectives
for this year's report was to measure consumer appetite and attitudes towards
new Fintech applications and services. Research revealed that there is still
plenty of room for growth in several Fintech market segments. For example, 17
percent of those surveyed in the UAE are looking for new and better
alternatives to send international money transfers. There is also a sizeable
opportunity for online wallet solutions, with around 47 percent of consumers
across the region yet to adopt the technology.
A total of $30.4 billion of
goods and services were purchased online in the seven countries during 2016,
increasing 22 percent on the $24.9 billion of payments during 2015. The top countries
in terms of dollar value and growth in value were the UAE with $12.4 billion of
transactions and 21 percent annual growth in total amount paid online; Saudi
Arabia with $8.3 billion of transactions and 27 percent growth; and Egypt with
$6.2 billion of transactions and 22 percent growth.
Saudi Arabia was the fastest growing country
in the airlines and travel sectors, showing 21 percent year-on-year growth in
airline payment volume and 36 percent growth in travel and tourism. Egypt led
the region in the growth of online shopping with a 32 percent increase in volume
of payments. Meanwhile, the UAE was the fastest growing country in the
entertainment and events sector, showing 36 percent growth.
Security remains the top concern among those that
choose not to pay for goods and services online, with more than 50 percent of
cash-on-delivery customers surveyed in all countries stating that they would
only switch to online payments if they were convinced that the payment method
was secure. Cash-on-delivery was most popular as a payment option in Egypt (70%
usage) and Lebanon (60% usage).
“Despite the enormous growth in the
region’s online payments and usage of ecommerce, security fears remain
prevalent among consumers,” said Nardeen
Abdalla, Marketing Director of Payfort. “Although we now see a greater willingness
to make online transactions, consumers are increasingly aware of the risks of
fraud and other cybercrimes. They are also increasingly demanding, seeking faster
and easier checkouts. PayFort is helping businesses in the region take their
online sales and payment options to the next level, by simplifying the checkout
process for businesses, allowing them to offer their customers a choice of secure
online payment options.”
The new report also highlighted the
growing interest in mobile payments, with 50 percent of respondents in six out
of seven countries showing an interest in mobile payment apps. The report also
showed that consumer usage of mobile wallets is widespread, with 33 percent of
respondents in Saudi Arabia already using mobile wallets, compared to 27
percent in Egypt and Lebanon, 25 percent in Jordan, 23 percent in the UAE and
17 percent in Qatar.
In addition to an extensive section on consumer
buying habits and consumer preferences in the region, the State of Payments
2017 also includes a new Shopping Cart Guide and a guide to Checkout Page Best
Practices.
“As ordering and paying online becomes an
integral part of everyday life, the region’s merchants will find that the
performance of their shopping cart systems and check-out pages will depend more
and more on best practices to create the optimum customer experience,” said Soudodi. “This year’s State of
Payments report provides a wealth of information on both consumer behavior
online and practical advice for merchants who want to improve performance and
meet their customers’ rising expectations.”
The report’s analysis is derived from data
collected in the countries in which PAYFORT operates (Egypt, Jordan, Lebanon,
Qatar, Saudi Arabia and the UAE) and is available at no cost for those who
register at www.stateofpayments.com.
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