State of Payments 2016
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Transcript of State of Payments 2016
stateofpayments.com
ABOUT THE REPORT
Welcome to the State of Payments 2016 by PAYFORT. For the third year in a row we’re releasing our annual report that details the world of payments, ecommerce and innovation
across the Arab World.
We’ve collected data from both consumers and merchants to provide you with actionable insight you can use to create a more successful, profitable and consumer focused business.
Two years ago we released our first State of Payments report, something that evolved out of a desire to increase our own understanding of consumers in the region and share that
information with the growing business community throughout the Arab World.
In last year’s report, we strived to create something that not only contained the same consumer-centric data but also presented that data in a meaningful way. We wanted to create a fuller picture that incorporated the opinions of hundreds of merchants who
interact with consumers on a day-to-day basis.
In this year’s report we’ve once again reimagined how best to share the massive amount of data that is available within the Middle East’s ecommerce sectors. To do this we have refocused the report to not only explore current trends, but also address the real issues that
impact merchants on a day to day basis and share meaningful solutions for the future.
Over the past three years State of Payments has become our favourite content piece and we’d love to hear your thoughts on the report. Be sure to reach out via social media using the hashtag #StateofPayments or contact us via email [email protected] to share your thoughts. We have also provided a feedback section within the report where you can share
your thoughts.
TABLE OF CONTENT
TrendsMarketsize
Marketsize Forecast
Acceptance Ratio
Refunds
Seasonality
DemographicsPopulation
Internet User
Online Buyers
Social Network
Buyers by Genders
Age Group
Income Level
SurveyOnline Shopping in the Arab World
What type of Products are Arab shoppers buying
How Shoppers are Influenced
Payment, Security & Privacy
ChallengesFailure from 3D Secure
Credit Card Penetration
Fraud and Risk Tolerance
Mobile Payment
Trust
E-commerce Utopia
About the ReportWhy State of Payments?
Methodology
02
14
26
39
52
63
64
65
66
73
74
81
107
109
89
90
91
92
94
96
98
100
102
105
Changes that are shaping Middle East E-commerce
10b
9b
8b
7b
6b
5b
4b
3b
2b
1b
0
20152014
UAE KSA EGYPT KUWAIT LEBANON JORDAN QATAR
8.24b
10.25b
4.63b
6.48b
4.18b
1.09b1.26b
0.73b0.78b0.55b 0.65b
0.38b0.42b
MARKETSIZE OVERVIEW
Across the region we saw very strong growth, with market size increasing by an impressive 23.3%. The largest growth occurred in Saudi Arabia, with the UAE and Egypt also performing exceedingly well. The smallest growth occurred in Lebanon and Qatar, however it is important to note that the market size of all countries studied is increasing.
Saudi Arabia’s growth was fuelled by a growing ecommerce market and an increase in online travel bookings, with these sectors representing the largest growth in the region. Egypt and the UAE in contrast saw larger growth in their events and entertainment sectors. The slowest growth occurred in Lebanon’s Airlines sector and a similar trend was observed in Kuwait and Qatar.
2 #stateofpayments
5.06b
6b
5b
4b
3b
2b
1b
0
20152014
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
4.70b
5.62b
1.14b
1.65b
2.30b
2.84b
0.09b 0.13b
MARKETSIZEUNITED ARAB EMIRATES
Across the region we saw very strong growth, with market size increasing by an impressive 23.3%. The largest growth occurred in Saudi Arabia, with the UAE and Egypt also performing exceedingly well. The smallest growth occurred in Lebanon and Qatar, however it is important to note that the market size of all countries studied is increasing.
Saudi Arabia’s growth was fuelled by a growing ecommerce market and an increase in online travel bookings, with these sectors representing the largest growth in the region. Egypt and the UAE in contrast saw larger growth in their events and entertainment sectors. The slowest growth occurred in Lebanon’s Airlines sector and a similar trend was observed in Kuwait and Qatar.
3#stateofpayments
5b
4b
3b
2b
1b
0
20152014
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
2.20b
2.67b
0.92b
1.55b 1.50b
2.25b
MARKETSIZEKINGDOM OF SAUDI ARABIA
Across the region we saw very strong growth, with market size increasing by an impressive 23.3%. The largest growth occurred in Saudi Arabia, with the UAE and Egypt also performing exceedingly well. The smallest growth occurred in Lebanon and Qatar, however it is important to note that the market size of all countries studied is increasing.
Saudi Arabia’s growth was fuelled by a growing ecommerce market and an increase in online travel bookings, with these sectors representing the largest growth in the region. Egypt and the UAE in contrast saw larger growth in their events and entertainment sectors. The slowest growth occurred in Lebanon’s Airlines sector and a similar trend was observed in Kuwait and Qatar.
.001b .012b
4 #stateofpayments
5b
4b
3b
2b
1b
0
20152014
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
1.90b
2.18b
0.87b1.03b
1.40b
1.84b
.006b .009b
MARKETSIZEEGYPT
Across the region we saw very strong growth, with market size increasing by an impressive 23.3%. The largest growth occurred in Saudi Arabia, with the UAE and Egypt also performing exceedingly well. The smallest growth occurred in Lebanon and Qatar, however it is important to note that the market size of all countries studied is increasing.
Saudi Arabia’s growth was fuelled by a growing ecommerce market and an increase in online travel bookings, with these sectors representing the largest growth in the region. Egypt and the UAE in contrast saw larger growth in their events and entertainment sectors. The slowest growth occurred in Lebanon’s Airlines sector and a similar trend was observed in Kuwait and Qatar.
5#stateofpayments
1000m
900m
800m
700m
600m
500m
400m
300m
200m
100m
0
20152014
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
560m
2.5m 2.7m
MARKETSIZEKUWAIT
Across the region we saw very strong growth, with market size increasing by an impressive 23.3%. The largest growth occurred in Saudi Arabia, with the UAE and Egypt also performing exceedingly well. The smallest growth occurred in Lebanon and Qatar, however it is important to note that the market size of all countries studied is increasing.
Saudi Arabia’s growth was fuelled by a growing ecommerce market and an increase in online travel bookings, with these sectors representing the largest growth in the region. Egypt and the UAE in contrast saw larger growth in their events and entertainment sectors. The slowest growth occurred in Lebanon’s Airlines sector and a similar trend was observed in Kuwait and Qatar.
400m
130m
430m
150m
680m
6 #stateofpayments
1000m
900m
800m
700m
600m
500m
400m
300m
200m
100m
0
MARKETSIZELEBANON
Across the region we saw very strong growth, with market size increasing by an impressive 23.3%. The largest growth occurred in Saudi Arabia, with the UAE and Egypt also performing exceedingly well. The smallest growth occurred in Lebanon and Qatar, however it is important to note that the market size of all countries studied is increasing.
Saudi Arabia’s growth was fuelled by a growing ecommerce market and an increase in online travel bookings, with these sectors representing the largest growth in the region. Egypt and the UAE in contrast saw larger growth in their events and entertainment sectors. The slowest growth occurred in Lebanon’s Airlines sector and a similar trend was observed in Kuwait and Qatar.
7#stateofpayments20152014
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
280m310m
3.7m 4.1m50m 56m
400m410m
1000m
900m
800m
700m
600m
500m
400m
300m
200m
100m
0
20152014
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
MARKETSIZEJORDAN
Across the region we saw very strong growth, with market size increasing by an impressive 23.3%. The largest growth occurred in Saudi Arabia, with the UAE and Egypt also performing exceedingly well. The smallest growth occurred in Lebanon and Qatar, however it is important to note that the market size of all countries studied is increasing.
Saudi Arabia’s growth was fuelled by a growing ecommerce market and an increase in online travel bookings, with these sectors representing the largest growth in the region. Egypt and the UAE in contrast saw larger growth in their events and entertainment sectors. The slowest growth occurred in Lebanon’s Airlines sector and a similar trend was observed in Kuwait and Qatar.
300m340m
40m60m
210m
250m
1.2m 1.5m
8 #stateofpayments
1000m
900m
800m
700m
600m
500m
400m
300m
200m
100m
0
20152014
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
MARKETSIZEQATAR
Across the region we saw very strong growth, with market size increasing by an impressive 23.3%. The largest growth occurred in Saudi Arabia, with the UAE and Egypt also performing exceedingly well. The smallest growth occurred in Lebanon and Qatar, however it is important to note that the market size of all countries studied is increasing.
Saudi Arabia’s growth was fuelled by a growing ecommerce market and an increase in online travel bookings, with these sectors representing the largest growth in the region. Egypt and the UAE in contrast saw larger growth in their events and entertainment sectors. The slowest growth occurred in Lebanon’s Airlines sector and a similar trend was observed in Kuwait and Qatar.
300m320m
45m 49m38m 44m
.5m .6m
9#stateofpayments
6b
5b
4b
3b
2b
1b
0
UAE KSA EGYPT KUWAIT LEBANON JORDAN QATAR
4.70b
5.62b
2.20b
2.67b
1.90b
2.18b
.40b .41b.30b .34b .30b .32b
MARKETSIZEAIRLINES
Across the region we saw very strong growth, with market size increasing by an impressive 23.3%. The largest growth occurred in Saudi Arabia, with the UAE and Egypt also performing exceedingly well. The smallest growth occurred in Lebanon and Qatar, however it is important to note that the market size of all countries studied is increasing.
Saudi Arabia’s growth was fuelled by a growing ecommerce market and an increase in online travel bookings, with these sectors representing the largest growth in the region. Egypt and the UAE in contrast saw larger growth in their events and entertainment sectors. The slowest growth occurred in Lebanon’s Airlines sector and a similar trend was observed in Kuwait and Qatar.
20152014
.40b .43b
10 #stateofpayments
3b
2b
1b
0
UAE KSA EGYPT KUWAIT LEBANON JORDAN QATAR
1.14b
1.65b
.92b
1.55b
.87b
1.03b
.04b .06b
MARKETSIZETRAVEL
Across the region we saw very strong growth, with market size increasing by an impressive 23.3%. The largest growth occurred in Saudi Arabia, with the UAE and Egypt also performing exceedingly well. The smallest growth occurred in Lebanon and Qatar, however it is important to note that the market size of all countries studied is increasing.
Saudi Arabia’s growth was fuelled by a growing ecommerce market and an increase in online travel bookings, with these sectors representing the largest growth in the region. Egypt and the UAE in contrast saw larger growth in their events and entertainment sectors. The slowest growth occurred in Lebanon’s Airlines sector and a similar trend was observed in Kuwait and Qatar.
20152014
.045b.049b.05b.13b .15b
.06b
11#stateofpayments
3b
2b
1b
0
20152014
UAE KSA EGYPT KUWAIT LEBANON JORDAN QATAR
2.30b
2.84b
1.50b
2.25b
1.40b
1.84b
.28b .31b.21b .25b
MARKETSIZEECOMMERCE
Across the region we saw very strong growth, with market size increasing by an impressive 23.3%. The largest growth occurred in Saudi Arabia, with the UAE and Egypt also performing exceedingly well. The smallest growth occurred in Lebanon and Qatar, however it is important to note that the market size of all countries studied is increasing.
Saudi Arabia’s growth was fuelled by a growing ecommerce market and an increase in online travel bookings, with these sectors representing the largest growth in the region. Egypt and the UAE in contrast saw larger growth in their events and entertainment sectors. The slowest growth occurred in Lebanon’s Airlines sector and a similar trend was observed in Kuwait and Qatar.
.03b .04b
.56b
.68b
12 #stateofpayments
MARKETSIZEENTERTAINMENT
Across the region we saw very strong growth, with market size increasing by an impressive 23.3%. The largest growth occurred in Saudi Arabia, with the UAE and Egypt also performing exceedingly well. The smallest growth occurred in Lebanon and Qatar, however it is important to note that the market size of all countries studied is increasing.
Saudi Arabia’s growth was fuelled by a growing ecommerce market and an increase in online travel bookings, with these sectors representing the largest growth in the region. Egypt and the UAE in contrast saw larger growth in their events and entertainment sectors. The slowest growth occurred in Lebanon’s Airlines sector and a similar trend was observed in Kuwait and Qatar.
150m
100m
50m
0
UAE KSA EGYPT KUWAIT LEBANON JORDAN QATAR
95m
129m
10m12.4m
6.25m8.82m 3.75m4.15m
1.25m 1.52m
20152014
2.5m 2.7m.50m .58m
13#stateofpayments
MARKETSIZE OVERVIEW(Forecast)
Moving forward into 2020 we expect to see positive growth throughout the Middle East with countries like Saudi Arabia, the United Arab Emirates and Egypt leading the region. With more and more people moving online, Saudi Arabia is expected to see substantial growth while smaller countries such as Lebanon and Qatar are expecting more modest increases.
Both Saudi Arabian and Egyptian growth will likely come out of their booming travel sectors and increasingly popular ecommerce businesses. The UAE’s entertainment and events sector is expected to grow more than any other sector in the region as a result of Expo 2020.
30b
25b
20b
15b
10b
5b
0
20202015
UAE KSA EGYPT KUWAIT LEBANON JORDAN QATAR
10.24b
27.13b
6.48b
22.13b
5.06b
14.04b
.65b1.36b
.42b .65b1.26b
2.8b
.78b 1.09b
14 #stateofpayments
20202015
15b
10b
5b
0
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
5.6b
13.7b
1.6b
4.6b
2.84b
8.09b
0.12b 0.60b
MARKETSIZE (Forecast)UNITED ARAB EMIRATES
Moving forward into 2020 we expect to see positive growth throughout the Middle East with countries like Saudi Arabia, the United Arab Emirates and Egypt leading the region. With more and more people moving online, Saudi Arabia is expected to see substantial growth while smaller countries such as Lebanon and Qatar are expecting more modest increases.
Both Saudi Arabian and Egyptian growth will likely come out of their booming travel sectors and increasingly popular ecommerce businesses. The UAE’s entertainment and events sector is expected to grow more than any other sector in the region as a result of Expo 2020.
15#stateofpayments
MARKETSIZE (Forecast)KINGDOM OF SAUDI ARABIA
Moving forward into 2020 we expect to see positive growth throughout the Middle East with countries like Saudi Arabia, the United Arab Emirates and Egypt leading the region. With more and more people moving online, Saudi Arabia is expected to see substantial growth while smaller countries such as Lebanon and Qatar are expecting more modest increases.
Both Saudi Arabian and Egyptian growth will likely come out of their booming travel sectors and increasingly popular ecommerce businesses. The UAE’s entertainment and events sector is expected to grow more than any other sector in the region as a result of Expo 2020.
15b
10b
5b
0
20202015
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
7.06b6.68b
2.30b
8.35b
.012b .036b
2.67b
1.55b
16 #stateofpayments
10b
8b
6b
4b
2b
0
20202015
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
2.18b
4.35b
1.03b
2.36b
1.84b
7.30b
.009b .023b
MARKETSIZE (Forecast)EGYPT
Moving forward into 2020 we expect to see positive growth throughout the Middle East with countries like Saudi Arabia, the United Arab Emirates and Egypt leading the region. With more and more people moving online, Saudi Arabia is expected to see substantial growth while smaller countries such as Lebanon and Qatar are expecting more modest increases.
Both Saudi Arabian and Egyptian growth will likely come out of their booming travel sectors and increasingly popular ecommerce businesses. The UAE’s entertainment and events sector is expected to grow more than any other sector in the region as a result of Expo 2020.
17#stateofpayments
MARKETSIZE (Forecast)KUWAIT
Moving forward into 2020 we expect to see positive growth throughout the Middle East with countries like Saudi Arabia, the United Arab Emirates and Egypt leading the region. With more and more people moving online, Saudi Arabia is expected to see substantial growth while smaller countries such as Lebanon and Qatar are expecting more modest increases.
Both Saudi Arabian and Egyptian growth will likely come out of their booming travel sectors and increasingly popular ecommerce businesses. The UAE’s entertainment and events sector is expected to grow more than any other sector in the region as a result of Expo 2020.
2b
1b
0
20202015
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
.62b.68b
.002b .004b
.43b
.33b
.15b
1.86b
18 #stateofpayments
MARKETSIZE (Forecast)LEBANON
Moving forward into 2020 we expect to see positive growth throughout the Middle East with countries like Saudi Arabia, the United Arab Emirates and Egypt leading the region. With more and more people moving online, Saudi Arabia is expected to see substantial growth while smaller countries such as Lebanon and Qatar are expecting more modest increases.
Both Saudi Arabian and Egyptian growth will likely come out of their booming travel sectors and increasingly popular ecommerce businesses. The UAE’s entertainment and events sector is expected to grow more than any other sector in the region as a result of Expo 2020.
19#stateofpayments
1000m
900m
800m
700m
600m
500m
400m
300m
200m
100m
0
20202015
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
310m
494m
4.15m 6.90m56m
98m
414m
492m
MARKETSIZE (Forecast)JORDAN
Moving forward into 2020 we expect to see positive growth throughout the Middle East with countries like Saudi Arabia, the United Arab Emirates and Egypt leading the region. With more and more people moving online, Saudi Arabia is expected to see substantial growth while smaller countries such as Lebanon and Qatar are expecting more modest increases.
Both Saudi Arabian and Egyptian growth will likely come out of their booming travel sectors and increasingly popular ecommerce businesses. The UAE’s entertainment and events sector is expected to grow more than any other sector in the region as a result of Expo 2020.
1000m
900m
800m
700m
600m
500m
400m
300m
200m
100m
0
20202015
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
340m
647m
60m
180m
250m
520m
1.52m 4.09m
20 #stateofpayments
1000m
900m
800m
700m
600m
500m
400m
300m
200m
100m
0
20202015
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
MARKETSIZE (Forecast)QATAR
Moving forward into 2020 we expect to see positive growth throughout the Middle East with countries like Saudi Arabia, the United Arab Emirates and Egypt leading the region. With more and more people moving online, Saudi Arabia is expected to see substantial growth while smaller countries such as Lebanon and Qatar are expecting more modest increases.
Both Saudi Arabian and Egyptian growth will likely come out of their booming travel sectors and increasingly popular ecommerce businesses. The UAE’s entertainment and events sector is expected to grow more than any other sector in the region as a result of Expo 2020.
320m
480m
49m83m
44m
86m
.58m 1.26m
21#stateofpayments
MARKETSIZE (Forecast)AIRLINES
Moving forward into 2020 we expect to see positive growth throughout the Middle East with countries like Saudi Arabia, the United Arab Emirates and Egypt leading the region. With more and more people moving online, Saudi Arabia is expected to see substantial growth while smaller countries such as Lebanon and Qatar are expecting more modest increases.
Both Saudi Arabian and Egyptian growth will likely come out of their booming travel sectors and increasingly popular ecommerce businesses. The UAE’s entertainment and events sector is expected to grow more than any other sector in the region as a result of Expo 2020.
.48b
15b
10b
5b
0
UAE KSA EGYPT KUWAIT LEBANON JORDAN QATAR
5.62b
13.77b
2.67b
7.06b
4.35b
.41b .49b .34b.65b
.32b
20202015
.43b
2.18b
.62b
22 #stateofpayments
MARKETSIZE (Forecast)TRAVEL
Moving forward into 2020 we expect to see positive growth throughout the Middle East with countries like Saudi Arabia, the United Arab Emirates and Egypt leading the region. With more and more people moving online, Saudi Arabia is expected to see substantial growth while smaller countries such as Lebanon and Qatar are expecting more modest increases.
Both Saudi Arabian and Egyptian growth will likely come out of their booming travel sectors and increasingly popular ecommerce businesses. The UAE’s entertainment and events sector is expected to grow more than any other sector in the region as a result of Expo 2020.
8b
6b
4b
2b
0
UAE KSA EGYPT KUWAIT LEBANON JORDAN QATAR
1.65b
4.66b
1.55b
6.68b
2.36b
.056b
.098b
.06b.18b
20202015
1.03b
.049b.083b.15b.33b
23#stateofpayments
MARKETSIZE (Forecast)ECOMMERCE
Moving forward into 2020 we expect to see positive growth throughout the Middle East with countries like Saudi Arabia, the United Arab Emirates and Egypt leading the region. With more and more people moving online, Saudi Arabia is expected to see substantial growth while smaller countries such as Lebanon and Qatar are expecting more modest increases.
Both Saudi Arabian and Egyptian growth will likely come out of their booming travel sectors and increasingly popular ecommerce businesses. The UAE’s entertainment and events sector is expected to grow more than any other sector in the region as a result of Expo 2020.
12b
10b
8b
6b
4b
2b
0
UAE KSA EGYPT KUWAIT LEBANON JORDAN QATAR
2.83b
8.09b
2.30b
8.35b
7.30b
1.86b
.25b.52b
20202015
.68b
1.84b
.04b .09b.31b .49b
24 #stateofpayments
MARKETSIZE (Forecast)ENTERTAINMENT
Moving forward into 2020 we expect to see positive growth throughout the Middle East with countries like Saudi Arabia, the United Arab Emirates and Egypt leading the region. With more and more people moving online, Saudi Arabia is expected to see substantial growth while smaller countries such as Lebanon and Qatar are expecting more modest increases.
Both Saudi Arabian and Egyptian growth will likely come out of their booming travel sectors and increasingly popular ecommerce businesses. The UAE’s entertainment and events sector is expected to grow more than any other sector in the region as a result of Expo 2020.
800m
600m
400m
200m
0
UAE KSA EGYPT KUWAIT LEBANON JORDAN QATAR
129.3m
605.8m
36.7m
1.52m 4.09m
20202015
8.82m 0.58m1.26m12.4m 23.8m2.69m3.87m 4.15m6.90m
25#stateofpayments
ACCEPTANCE RATIOOVERVIEW
The average acceptance across the Middle East has increased dramatically in 2015. This growth was largely fuelled by Egypt, Jordan and Kuwait however all countries studied saw impressive improvements.
Egypt saw their largest improvements in the ecommerce sector which increased by 16% over last year. This is a very positive sign that the Egyptian population is becoming more comfortable using ecommerce services in their daily lives. Another notable area of growth is Kuwait’s marketplace services sector which increased by 11.1%. Overall, the increasing acceptance ratio means online payments are becoming more common and more accepted in the region.
100%
80%
60%
40%
20%
0
20152014
UAE KSA EGYPT KUWAIT LEBANON JORDAN QATAR
68%71%
54%58%
47%51% 50%
53%
46%49%
47%
52% 52%54%
26 #stateofpayments
20152014
100%
80%
60%
40%
20%
0
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
60%
65%
MARKETPLACE
70%
78%
60%63%
69%71%
80%80%
ACCEPTANCE RATIOUNITED ARAB EMIRATES
The average acceptance across the Middle East has increased dramatically in 2015. This growth was largely fuelled by Egypt, Jordan and Kuwait however all countries studied saw impressive improvements.
Egypt saw their largest improvements in the ecommerce sector which increased by 16% over last year. This is a very positive sign that the Egyptian population is becoming more comfortable using ecommerce services in their daily lives. Another notable area of growth is Kuwait’s marketplace services sector which increased by 11.1%. Overall, the increasing acceptance ratio means online payments are becoming more common and more accepted in the region.
27#stateofpayments
ACCEPTANCE RATIOKINGDOM OF SAUDI ARABIA
The average acceptance across the Middle East has increased dramatically in 2015. This growth was largely fuelled by Egypt, Jordan and Kuwait however all countries studied saw impressive improvements.
Egypt saw their largest improvements in the ecommerce sector which increased by 16% over last year. This is a very positive sign that the Egyptian population is becoming more comfortable using ecommerce services in their daily lives. Another notable area of growth is Kuwait’s marketplace services sector which increased by 11.1%. Overall, the increasing acceptance ratio means online payments are becoming more common and more accepted in the region.
20152014
100%
80%
60%
40%
20%
0
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
53%
58%
MARKETPLACE
70%
75%
50%52%
50%
55%
49%50%
28 #stateofpayments
ACCEPTANCE RATIOEGYPT
The average acceptance across the Middle East has increased dramatically in 2015. This growth was largely fuelled by Egypt, Jordan and Kuwait however all countries studied saw impressive improvements.
Egypt saw their largest improvements in the ecommerce sector which increased by 16% over last year. This is a very positive sign that the Egyptian population is becoming more comfortable using ecommerce services in their daily lives. Another notable area of growth is Kuwait’s marketplace services sector which increased by 11.1%. Overall, the increasing acceptance ratio means online payments are becoming more common and more accepted in the region.
20152014
100%
80%
60%
40%
20%
0
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
52%55%
MARKETPLACE
43%45%
39% 40%
50%
58%
50%
55%
29#stateofpayments
ACCEPTANCE RATIOKUWAIT
The average acceptance across the Middle East has increased dramatically in 2015. This growth was largely fuelled by Egypt, Jordan and Kuwait however all countries studied saw impressive improvements.
Egypt saw their largest improvements in the ecommerce sector which increased by 16% over last year. This is a very positive sign that the Egyptian population is becoming more comfortable using ecommerce services in their daily lives. Another notable area of growth is Kuwait’s marketplace services sector which increased by 11.1%. Overall, the increasing acceptance ratio means online payments are becoming more common and more accepted in the region.
20152014
100%
80%
60%
40%
20%
0
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
45%
50%
MARKETPLACE
52%55%55%
60%
43%45%
54%56%
30 #stateofpayments
ACCEPTANCE RATIOLEBANON
The average acceptance across the Middle East has increased dramatically in 2015. This growth was largely fuelled by Egypt, Jordan and Kuwait however all countries studied saw impressive improvements.
Egypt saw their largest improvements in the ecommerce sector which increased by 16% over last year. This is a very positive sign that the Egyptian population is becoming more comfortable using ecommerce services in their daily lives. Another notable area of growth is Kuwait’s marketplace services sector which increased by 11.1%. Overall, the increasing acceptance ratio means online payments are becoming more common and more accepted in the region.
20152014
100%
80%
60%
40%
20%
0
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
50%
55%
MARKETPLACE
45%
50%52%
55%
39% 40%
45%45%
31#stateofpayments
ACCEPTANCE RATIOJORDAN
The average acceptance across the Middle East has increased dramatically in 2015. This growth was largely fuelled by Egypt, Jordan and Kuwait however all countries studied saw impressive improvements.
Egypt saw their largest improvements in the ecommerce sector which increased by 16% over last year. This is a very positive sign that the Egyptian population is becoming more comfortable using ecommerce services in their daily lives. Another notable area of growth is Kuwait’s marketplace services sector which increased by 11.1%. Overall, the increasing acceptance ratio means online payments are becoming more common and more accepted in the region.
20152014
100%
80%
60%
40%
20%
0
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
50%
55%
MARKETPLACE
50%
55%55%
60%
37%
40%
45%
50%
32 #stateofpayments
ACCEPTANCE RATIOQATAR
The average acceptance across the Middle East has increased dramatically in 2015. This growth was largely fuelled by Egypt, Jordan and Kuwait however all countries studied saw impressive improvements.
Egypt saw their largest improvements in the ecommerce sector which increased by 16% over last year. This is a very positive sign that the Egyptian population is becoming more comfortable using ecommerce services in their daily lives. Another notable area of growth is Kuwait’s marketplace services sector which increased by 11.1%. Overall, the increasing acceptance ratio means online payments are becoming more common and more accepted in the region.
20152014
100%
80%
60%
40%
20%
0
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
52%55%
MARKETPLACE
55%58%
50% 50% 50% 50%51%
55%
33#stateofpayments
ACCEPTANCE RATIOAIRLINES
The average acceptance across the Middle East has increased dramatically in 2015. This growth was largely fuelled by Egypt, Jordan and Kuwait however all countries studied saw impressive improvements.
Egypt saw their largest improvements in the ecommerce sector which increased by 16% over last year. This is a very positive sign that the Egyptian population is becoming more comfortable using ecommerce services in their daily lives. Another notable area of growth is Kuwait’s marketplace services sector which increased by 11.1%. Overall, the increasing acceptance ratio means online payments are becoming more common and more accepted in the region.
100%
80%
60%
40%
20%
0
20152014
UAE KSA EGYPT KUWAIT LEBANON JORDAN QATAR
80%80%
49% 50% 50%
55% 54% 56%
45% 45% 45%
50% 51%
55%
34 #stateofpayments
ACCEPTANCE RATIOTRAVEL
The average acceptance across the Middle East has increased dramatically in 2015. This growth was largely fuelled by Egypt, Jordan and Kuwait however all countries studied saw impressive improvements.
Egypt saw their largest improvements in the ecommerce sector which increased by 16% over last year. This is a very positive sign that the Egyptian population is becoming more comfortable using ecommerce services in their daily lives. Another notable area of growth is Kuwait’s marketplace services sector which increased by 11.1%. Overall, the increasing acceptance ratio means online payments are becoming more common and more accepted in the region.
100%
80%
60%
40%
20%
0
20152014
UAE KSA EGYPT KUWAIT LEBANON JORDAN QATAR
60%
50%52%
39%40%
55%
60%
52%55% 55%
60%
50% 50%
63%
35#stateofpayments
ACCEPTANCE RATIOECOMMERCE
The average acceptance across the Middle East has increased dramatically in 2015. This growth was largely fuelled by Egypt, Jordan and Kuwait however all countries studied saw impressive improvements.
Egypt saw their largest improvements in the ecommerce sector which increased by 16% over last year. This is a very positive sign that the Egyptian population is becoming more comfortable using ecommerce services in their daily lives. Another notable area of growth is Kuwait’s marketplace services sector which increased by 11.1%. Overall, the increasing acceptance ratio means online payments are becoming more common and more accepted in the region.
100%
80%
60%
40%
20%
0
20152014
UAE KSA EGYPT KUWAIT LEBANON JORDAN QATAR
69%71%
50%
55%
50%
58%
43% 45%
39% 40%37%
40%
50% 50%
36 #stateofpayments
ACCEPTANCE RATIOENTERTAINMENT
The average acceptance across the Middle East has increased dramatically in 2015. This growth was largely fuelled by Egypt, Jordan and Kuwait however all countries studied saw impressive improvements.
Egypt saw their largest improvements in the ecommerce sector which increased by 16% over last year. This is a very positive sign that the Egyptian population is becoming more comfortable using ecommerce services in their daily lives. Another notable area of growth is Kuwait’s marketplace services sector which increased by 11.1%. Overall, the increasing acceptance ratio means online payments are becoming more common and more accepted in the region.
100%
80%
60%
40%
20%
0
20152014
UAE KSA EGYPT KUWAIT LEBANON JORDAN QATAR
60%
65%
53%
58%
52%55%
45%
50% 50%
55%
50%
55%52%
55%
37#stateofpayments
ACCEPTANCE RATIOMARKETPLACE
The average acceptance across the Middle East has increased dramatically in 2015. This growth was largely fuelled by Egypt, Jordan and Kuwait however all countries studied saw impressive improvements.
Egypt saw their largest improvements in the ecommerce sector which increased by 16% over last year. This is a very positive sign that the Egyptian population is becoming more comfortable using ecommerce services in their daily lives. Another notable area of growth is Kuwait’s marketplace services sector which increased by 11.1%. Overall, the increasing acceptance ratio means online payments are becoming more common and more accepted in the region.
100%
80%
60%
40%
20%
0
20152014
UAE KSA EGYPT KUWAIT LEBANON JORDAN QATAR
70%
78%
70%
75%
43%45%
52%55%
45%
50% 50%
55% 55%58%
38 #stateofpayments
REFUNDS OVERVIEW
Across the Middle East we observed a positive trend of reduced refund ratios with the biggest improvements occurring in Jordan (-31.7%), KSA (-25.5%) and UAE (-22.4%).
These improvements were largely seen across all sectors however some of the most exciting improvements were in ecommerce. Within the UAE, KSA, Egypt and Kuwait the average improvement was -21%. Ecommerce has notable variance in refund behaviour within the region; in Egypt and KSA the refund ratio is improving, indicating consumers are more certain about their purchases where as in Lebanon their purchases may be more impulsive.
20152014
4%
3%
2%
1%
0
UAE KSA EGYPT KUWAIT LEBANON JORDAN QATAR
2.62%
1.95%
4.10%
3.44%
2.26%
1.81%1.74%
1.80%
2.96%
2.02%
1.22% 1.19%
2.52%
1.96%
39#stateofpayments
REFUNDSUNITED ARAB EMIRATES
Across the Middle East we observed a positive trend of reduced refund ratios with the biggest improvements occurring in Jordan (-31.7%), KSA (-25.5%) and UAE (-22.4%).
These improvements were largely seen across all sectors however some of the most exciting improvements were in ecommerce. Within the UAE, KSA, Egypt and Kuwait the average improvement was -21%. Ecommerce has notable variance in refund behaviour within the region; in Egypt and KSA the refund ratio is improving, indicating consumers are more certain about their purchases where as in Lebanon their purchases may be more impulsive.
40 #stateofpayments20152014
5%
4%
3%
2%
1%
0
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
2.00%
1.14%
MARKETPLACE
.60%.54%
5.00%
4.00% 4.02%
3.11%
1.00%1.00%
REFUNDSKINGDOM OF SAUDI ARABIA
Across the Middle East we observed a positive trend of reduced refund ratios with the biggest improvements occurring in Jordan (-31.7%), KSA (-25.5%) and UAE (-22.4%).
These improvements were largely seen across all sectors however some of the most exciting improvements were in ecommerce. Within the UAE, KSA, Egypt and Kuwait the average improvement was -21%. Ecommerce has notable variance in refund behaviour within the region; in Egypt and KSA the refund ratio is improving, indicating consumers are more certain about their purchases where as in Lebanon their purchases may be more impulsive.
41#stateofpayments
5%
4%
3%
2%
1%
0
20152014
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
1.80%
1.50%
MARKETPLACE
.30% .30%
5.00%
3.46%
3.00%3.00%
2.00%
2.50%
REFUNDSEGYPT
Across the Middle East we observed a positive trend of reduced refund ratios with the biggest improvements occurring in Jordan (-31.7%), KSA (-25.5%) and UAE (-22.4%).
These improvements were largely seen across all sectors however some of the most exciting improvements were in ecommerce. Within the UAE, KSA, Egypt and Kuwait the average improvement was -21%. Ecommerce has notable variance in refund behaviour within the region; in Egypt and KSA the refund ratio is improving, indicating consumers are more certain about their purchases where as in Lebanon their purchases may be more impulsive.
42 #stateofpayments20152014
12%
10%
8%
6%
4%
2%
0
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
2.00% 2.00%
MARKETPLACE
.50%
.20%
3.00%3.00%
12.00%
9.00%
3.00%3.00%
REFUNDSKUWAIT
Across the Middle East we observed a positive trend of reduced refund ratios with the biggest improvements occurring in Jordan (-31.7%), KSA (-25.5%) and UAE (-22.4%).
These improvements were largely seen across all sectors however some of the most exciting improvements were in ecommerce. Within the UAE, KSA, Egypt and Kuwait the average improvement was -21%. Ecommerce has notable variance in refund behaviour within the region; in Egypt and KSA the refund ratio is improving, indicating consumers are more certain about their purchases where as in Lebanon their purchases may be more impulsive.
5%
4%
3%
2%
1%
0
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
1.80%
1.50%
MARKETPLACE
.70%.50%
2.50%
2.00%
5.00%
4.00%
1.29%
1.05%
2015201443#stateofpayments
20152014
5%
4%
3%
2%
1%
0
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
1.00% 1.00%
MARKETPLACE
.22%.18%
1.50%
1.00%
4.00%
5.00%
2%1.80%
REFUNDSLEBANON
Across the Middle East we observed a positive trend of reduced refund ratios with the biggest improvements occurring in Jordan (-31.7%), KSA (-25.5%) and UAE (-22.4%).
These improvements were largely seen across all sectors however some of the most exciting improvements were in ecommerce. Within the UAE, KSA, Egypt and Kuwait the average improvement was -21%. Ecommerce has notable variance in refund behaviour within the region; in Egypt and KSA the refund ratio is improving, indicating consumers are more certain about their purchases where as in Lebanon their purchases may be more impulsive.
44 #stateofpayments
REFUNDSJORDAN
Across the Middle East we observed a positive trend of reduced refund ratios with the biggest improvements occurring in Jordan (-31.7%), KSA (-25.5%) and UAE (-22.4%).
These improvements were largely seen across all sectors however some of the most exciting improvements were in ecommerce. Within the UAE, KSA, Egypt and Kuwait the average improvement was -21%. Ecommerce has notable variance in refund behaviour within the region; in Egypt and KSA the refund ratio is improving, indicating consumers are more certain about their purchases where as in Lebanon their purchases may be more impulsive.
45#stateofpayments20152014
10%
8%
6%
4%
2%
0
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
1.00% 1.00%
MARKETPLACE
.30%.10%
9.00%
6.00%
1.50%
1.00%
3.00%
2.00%
REFUNDSQATAR
Across the Middle East we observed a positive trend of reduced refund ratios with the biggest improvements occurring in Jordan (-31.7%), KSA (-25.5%) and UAE (-22.4%).
These improvements were largely seen across all sectors however some of the most exciting improvements were in ecommerce. Within the UAE, KSA, Egypt and Kuwait the average improvement was -21%. Ecommerce has notable variance in refund behaviour within the region; in Egypt and KSA the refund ratio is improving, indicating consumers are more certain about their purchases where as in Lebanon their purchases may be more impulsive.
46 #stateofpayments20152014
3%
2%
1%
0
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
1.00% 1.00%
MARKETPLACE
.12%
.10%
2.00%
2.47%
1.50%
1.40%
1.50%
1.00%
REFUNDSAIRLINES
Across the Middle East we observed a positive trend of reduced refund ratios with the biggest improvements occurring in Jordan (-31.7%), KSA (-25.5%) and UAE (-22.4%).
These improvements were largely seen across all sectors however some of the most exciting improvements were in ecommerce. Within the UAE, KSA, Egypt and Kuwait the average improvement was -21%. Ecommerce has notable variance in refund behaviour within the region; in Egypt and KSA the refund ratio is improving, indicating consumers are more certain about their purchases where as in Lebanon their purchases may be more impulsive.
47#stateofpayments20152014
3%
2%
1%
0
UAE KSA EGYPT KUWAIT LEBANON JORDAN QATAR
3.00%
2.00%
1.29%
1.05%
2.00%1.80%
1.50%
1.00%
1.50%1.40%
3.00%3.00%
1.00%1.00%
REFUNDSTRAVEL
Across the Middle East we observed a positive trend of reduced refund ratios with the biggest improvements occurring in Jordan (-31.7%), KSA (-25.5%) and UAE (-22.4%).
These improvements were largely seen across all sectors however some of the most exciting improvements were in ecommerce. Within the UAE, KSA, Egypt and Kuwait the average improvement was -21%. Ecommerce has notable variance in refund behaviour within the region; in Egypt and KSA the refund ratio is improving, indicating consumers are more certain about their purchases where as in Lebanon their purchases may be more impulsive.
20152014
5%
4%
3%
2%
1%
0
UAE KSA EGYPT KUWAIT LEBANON JORDAN QATAR
5.00%
3.46%
2.50%
2.00%
1.50%
1.00%
3.00%
2.00%
1.50%
1.00%
3.00%3.00%
5.00%
4.00%
48 #stateofpayments
REFUNDSECOMMERCE
Across the Middle East we observed a positive trend of reduced refund ratios with the biggest improvements occurring in Jordan (-31.7%), KSA (-25.5%) and UAE (-22.4%).
These improvements were largely seen across all sectors however some of the most exciting improvements were in ecommerce. Within the UAE, KSA, Egypt and Kuwait the average improvement was -21%. Ecommerce has notable variance in refund behaviour within the region; in Egypt and KSA the refund ratio is improving, indicating consumers are more certain about their purchases where as in Lebanon their purchases may be more impulsive.
49#stateofpayments20152014
12%
10%
8%
6%
4%
2%
0
UAE KSA EGYPT KUWAIT LEBANON JORDAN QATAR
4.02%
3.11% 3.00%
12.00%
9.00%
4.00%
5.00%
9.00%
6.00%
2.00%
2.47%2.50%
5.00%
4.00%
REFUNDSENTERTAINMENT
Across the Middle East we observed a positive trend of reduced refund ratios with the biggest improvements occurring in Jordan (-31.7%), KSA (-25.5%) and UAE (-22.4%).
These improvements were largely seen across all sectors however some of the most exciting improvements were in ecommerce. Within the UAE, KSA, Egypt and Kuwait the average improvement was -21%. Ecommerce has notable variance in refund behaviour within the region; in Egypt and KSA the refund ratio is improving, indicating consumers are more certain about their purchases where as in Lebanon their purchases may be more impulsive.
2%
1%
0
20152014
UAE KSA EGYPT KUWAIT LEBANON JORDAN QATAR
1.80%
1.50%
1.80%
1.50%
1.00%1.00% 1.00% 1.00% 1.00%1.00%
2.00%2.00%2.00%
1.14%
50 #stateofpayments
REFUNDSMARKETPLACE
Across the Middle East we observed a positive trend of reduced refund ratios with the biggest improvements occurring in Jordan (-31.7%), KSA (-25.5%) and UAE (-22.4%).
These improvements were largely seen across all sectors however some of the most exciting improvements were in ecommerce. Within the UAE, KSA, Egypt and Kuwait the average improvement was -21%. Ecommerce has notable variance in refund behaviour within the region; in Egypt and KSA the refund ratio is improving, indicating consumers are more certain about their purchases where as in Lebanon their purchases may be more impulsive.
20152014
1%
0.8%
0.6%
0.4%
0.2%
0
UAE KSA EGYPT KUWAIT LEBANON JORDAN QATAR
.30%
.70%
.50%
.22%
.18%
.30%
.10%.12%
.10%
.50%
.20%
.60%
.54%
.30%
51#stateofpayments
SEASONALITYAIRLINES TX NUMBERS
Throughout 2015 there has been positive growth at both country and industry levels. Shopper behaviour has shifted slightly with regards to seasonality with major purchases taking place at di�erent times in 2015.
Airlines saw an increase in both the number of transactions and overall volume and the distribution of transactions across the year shifted dramatically. In 2014 we saw selective months significantly outperforming others, while in 2015 we saw a healthier distribution.
New trends were also observed in the ecommerce sector with a spike in November shopping relating to the holiday season and promotions during those times.
4,475
16k
12k
8K
4K
0
-4k
-8k
-12k
-16k
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
-8,339 -8,479
739
-6,437
-1,227
-2,280-1,984
2,036
9,328
1,231
10,934
2015
52 #stateofpayments
SEASONALITYAIRLINES TX VOLUME
Throughout 2015 there has been positive growth at both country and industry levels. Shopper behaviour has shifted slightly with regards to seasonality with major purchases taking place at di�erent times in 2015.
Airlines saw an increase in both the number of transactions and overall volume and the distribution of transactions across the year shifted dramatically. In 2014 we saw selective months significantly outperforming others, while in 2015 we saw a healthier distribution.
New trends were also observed in the ecommerce sector with a spike in November shopping relating to the holiday season and promotions during those times.
$12m
$9m
$6m
$3m
0m
$-3m
$-6m
$-9m
$-12m
-9.8m
0.68m
-3.4m
1.8m
5.3m
9.3m10.8m
5.3m
-4.8m
-5.9m
-0.47m
-8.7m
2015
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
53#stateofpayments
SEASONALITYTRAVEL TX NUMBERS
Throughout 2015 there has been positive growth at both country and industry levels. Shopper behaviour has shifted slightly with regards to seasonality with major purchases taking place at di�erent times in 2015.
Airlines saw an increase in both the number of transactions and overall volume and the distribution of transactions across the year shifted dramatically. In 2014 we saw selective months significantly outperforming others, while in 2015 we saw a healthier distribution.
New trends were also observed in the ecommerce sector with a spike in November shopping relating to the holiday season and promotions during those times.
35k
30k
25K
20K
15k
10k
5k
0
-5k
-10k
-15K
-20K
-25k
-30k
-35k
17,777
-25,389
-21,267
-12,637 -11,256
-2,780
4,724 4,844
15,90513,952
8,683 7,446
2015
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
54 #stateofpayments
SEASONALITYTRAVEL TX VOLUME
Throughout 2015 there has been positive growth at both country and industry levels. Shopper behaviour has shifted slightly with regards to seasonality with major purchases taking place at di�erent times in 2015.
Airlines saw an increase in both the number of transactions and overall volume and the distribution of transactions across the year shifted dramatically. In 2014 we saw selective months significantly outperforming others, while in 2015 we saw a healthier distribution.
New trends were also observed in the ecommerce sector with a spike in November shopping relating to the holiday season and promotions during those times.
$12m
$8m
$4m
0m
$-4m
$-8m
$-12m -12.1m
-9.7m
-5.5m
-6.7m
-2.9m
5.7m
10.8m
9.0m
5.5m
0.76m
-0.16m
5.3m
2015
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
55#stateofpayments
SEASONALITYECOMMERCE TX NUMBER
Throughout 2015 there has been positive growth at both country and industry levels. Shopper behaviour has shifted slightly with regards to seasonality with major purchases taking place at di�erent times in 2015.
Airlines saw an increase in both the number of transactions and overall volume and the distribution of transactions across the year shifted dramatically. In 2014 we saw selective months significantly outperforming others, while in 2015 we saw a healthier distribution.
New trends were also observed in the ecommerce sector with a spike in November shopping relating to the holiday season and promotions during those times.
200k
160k
120K
80K
40k
0k
-40k
-80k
-120k
-160k
-200k
46,953
-69,854 -72,958
18,467
-35,760-27,008
1,815
-37,754 -39,470
21,805
180,913
2015
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
12,851
56 #stateofpayments
SEASONALITYECOMMERCE TX VOLUME
Throughout 2015 there has been positive growth at both country and industry levels. Shopper behaviour has shifted slightly with regards to seasonality with major purchases taking place at di�erent times in 2015.
Airlines saw an increase in both the number of transactions and overall volume and the distribution of transactions across the year shifted dramatically. In 2014 we saw selective months significantly outperforming others, while in 2015 we saw a healthier distribution.
New trends were also observed in the ecommerce sector with a spike in November shopping relating to the holiday season and promotions during those times.
$40m
$30m
$20m
$10m
0m
$-10m
$-20m
$-30m
$-40m
-12m-13.6m
-8.1m
-3.5m
-6.6m-4.5m -4.4m
2.5m
39.7m
-1.4m
5.2m6.9m
2015
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
57#stateofpayments
SEASONALITYENTERTAINMENT TX NUMBER
Throughout 2015 there has been positive growth at both country and industry levels. Shopper behaviour has shifted slightly with regards to seasonality with major purchases taking place at di�erent times in 2015.
Airlines saw an increase in both the number of transactions and overall volume and the distribution of transactions across the year shifted dramatically. In 2014 we saw selective months significantly outperforming others, while in 2015 we saw a healthier distribution.
New trends were also observed in the ecommerce sector with a spike in November shopping relating to the holiday season and promotions during those times.
10k
8k
6K
4K
2k
0k
-2k
-4k
-6k
-8k
-10k
5,407
-2,858
-570
1,464
-1,693
-4,533
-2,295
-6
1,028
2,386
6,893
-5,219
2015
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
58 #stateofpayments
SEASONALITYENTERTAINMENT TX VOLUME
Throughout 2015 there has been positive growth at both country and industry levels. Shopper behaviour has shifted slightly with regards to seasonality with major purchases taking place at di�erent times in 2015.
Airlines saw an increase in both the number of transactions and overall volume and the distribution of transactions across the year shifted dramatically. In 2014 we saw selective months significantly outperforming others, while in 2015 we saw a healthier distribution.
New trends were also observed in the ecommerce sector with a spike in November shopping relating to the holiday season and promotions during those times.
$4m
$3m
$2m
$1m
0m
$-1m
$-2m
$-3m
$-4m
-0.59m -0.47m
0.07m0.14m 0.08m
-0.83m
0.08m0.30m
-0.30m -0.26m
2m
-0.27m
2015
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
59#stateofpayments
SEASONALITYMARKETPLACE TX NUMBER
Throughout 2015 there has been positive growth at both country and industry levels. Shopper behaviour has shifted slightly with regards to seasonality with major purchases taking place at di�erent times in 2015.
Airlines saw an increase in both the number of transactions and overall volume and the distribution of transactions across the year shifted dramatically. In 2014 we saw selective months significantly outperforming others, while in 2015 we saw a healthier distribution.
New trends were also observed in the ecommerce sector with a spike in November shopping relating to the holiday season and promotions during those times.
-8,529
-9,902
-6,201
-4,120
-1,317
-325378
3,8504,369
7,683 7,750
10k
8k
6K
4K
2k
0k
-2k
-4k
-6k
-8k
-10k
6,364
2015
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
60 #stateofpayments
SEASONALITYMARKETPLACE TX VOLUME
Throughout 2015 there has been positive growth at both country and industry levels. Shopper behaviour has shifted slightly with regards to seasonality with major purchases taking place at di�erent times in 2015.
Airlines saw an increase in both the number of transactions and overall volume and the distribution of transactions across the year shifted dramatically. In 2014 we saw selective months significantly outperforming others, while in 2015 we saw a healthier distribution.
New trends were also observed in the ecommerce sector with a spike in November shopping relating to the holiday season and promotions during those times.
$1m
$.80m
$.60m
$.40m
$.20m
0
$-.20m
$-.40m
$-.60m
$-.80m
$-1m-1m
-0.82m
-0.70m
-0.40m
-0.03m
0.54m 0.55m
0.81m
1m
-0.11m
0.74m
-0.54m
2015
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
61#stateofpayments
Understand the population that is Driving Innovation
100m
80m
60m
40m
20m
0
POPULATION
A large portion of the Arab World is concentrated within the population centers of Saudi Arabia and Egypt. Though these two markets represent some of the greatest opportunity for ecommerce in the region, both present unique challenges for businesses.
Within Saudi Arabia the mobile web is becoming the go to platform for day to day browsing and ecommerce alike, but with roughly 1 in 2 Saudi’s still concerned over online payment security, businesses need to better communicate their security features if they want to succeed.
In Egypt desktop browsing remains king with roughly 3 out of 4 shoppers using the platform to complete their online shopping. Credit card access continues to be a barrier for online shopping in the country and 40% shoppers claim it prevents them from exploring online shopping.
Overall populations in the Arab World are continuing grow increasing by 2.1% over 2014.
KSA QATAR
30.8
m31
.5m
JORDAN
6.6m 6.7m
2.1m 2.2m
2014 2015
UAE
9.0m 9.1m
EGYPT
89.5
m90
.6m
KUWAIT3.
7m 3.9m
LEBANON
4.5m 4.6m
63#stateofpayments
40m
30m
20m
10m
0m
8.5m
8.2m
20.8
m19
.6m
31.4
m28
.3m
3.1m
2.9m 3.
6m3.
3m
3.2m
2.9m
2.0m
1.9m
INTERNET USER
Internet users continue to grow at a rapid pace, increasing by roughly 13.1% over the previous year.
Egypt continues to be the largest internet market in the region followed by Saudi Arabia and Morocco. Though these countries represent over ¾ of the regions internet users, internet penetration remains relatively low; ranging between 35% for Egypt and 65% for Saudi Arabia.
In contrast countries like the UAE, Qatar, and Kuwait have seen further internet penetration and now represent some of the region’s most mature internet populations. As more users move online expect to see more pressure to develop the Arab World’s ecommerce industry.
2014 2015
UAE KSA EGYPT KUWAIT LEBANON JORDAN QATAR
64 #stateofpayments
20m
15m
10m
5m
0m
UAE KSA EGYPT KUWAIT LEBANON JORDAN QATAR
ONLINE BUYERS
In line with the growth of the region’s online population the number of online buyers has increased by nearly 14% over 2014 values. This increase is a positive sign that ecommerce is continuing to gain traction across the Arab World.
Egypt continues to represent the region’s largest online population with an 18 Million customers taking advantage of online shopping opportunities. Despite this large number of online shoppers, when looked at in terms of proportion of population Egypt remains behind all other countries studied.
Leading the region, the UAE has the highest number of online buyers as a proportion of the population with just over 70%. Interesting, when looking at the number of online buyers as a portion of the internet users in a country, it is Kuwait that comes out a head with 82% of its online population shopping online.
7.0m
6.8m
12.0
m10
.6m
17.7
m15
.2m
2.6m
2.4m
2.1m
1.6m
1.3m
1.6m
1.2m
.94m
2014 2015
65#stateofpayments
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0
82.1%
41.3
% 46.1%
49.1%
36.9
%
55.2
%
TWIT
TER
FAC
EBO
OK
GO
OG
LE+
LIN
KED
IN
INST
AGRA
M
PIN
TERE
ST
WO
RDPR
ESS
FLIC
KR
YOU
TUBE
I DO
NO
T U
SE S
OC
IAL
MED
IA
15.2
%
5.8%
4.4%6.
1%
SOCIAL NETWORKSUNITED ARAB EMIRATES
Just like other areas of the world, the Middle East has embraced social media. It is estimated that between 85% and 90% of the region’s online population use social media daily representing a potential audience of nearly 100 million people. With such a massive number of potential customers browsing daily it’s no wonder businesses are scrambling to improve their social presence.
The popularity of social networks varies across the region. Facebook remains the Middle East’s most popular network however its presence is notability weaker in the KSA and Kuwait. A fairly new entrant to the social media landscape, Pinterest is gaining popularity across the region led by a 21% usage rate in Qatar.
66 #stateofpayments
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0
64.5
%
54.6
%
44.7
%
24.8
%
52.2
%
52.4
%
TWIT
TER
FAC
EBO
OK
GO
OG
LE+
LIN
KED
IN
INST
AGRA
M
PIN
TERE
ST
WO
RDPR
ESS
FLIC
KR
YOU
TUBE
6.6%
3.2% 5.1%5.2%
SOCIAL NETWORKSKINGDOM OF SAUDI ARABIA
Just like other areas of the world, the Middle East has embraced social media. It is estimated that between 85% and 90% of the region’s online population use social media daily representing a potential audience of nearly 100 million people. With such a massive number of potential customers browsing daily it’s no wonder businesses are scrambling to improve their social presence.
The popularity of social networks varies across the region. Facebook remains the Middle East’s most popular network however its presence is notability weaker in the KSA and Kuwait. A fairly new entrant to the social media landscape, Pinterest is gaining popularity across the region led by a 21% usage rate in Qatar.
I DO
NO
T U
SE S
OC
IAL
MED
IA
67#stateofpayments
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0
93.4
%
60.5
%
70.4
%
32.1% 35
.8%
6.7%
66.4
%
TWIT
TER
FAC
EBO
OK
GO
OG
LE+
LIN
KED
IN
INST
AGRA
M
PIN
TERE
ST
WO
RDPR
ESS
FLIC
KR
YOU
TUBE
9.4%
5.2%
1.4%
SOCIAL NETWORKSEGYPT
Just like other areas of the world, the Middle East has embraced social media. It is estimated that between 85% and 90% of the region’s online population use social media daily representing a potential audience of nearly 100 million people. With such a massive number of potential customers browsing daily it’s no wonder businesses are scrambling to improve their social presence.
The popularity of social networks varies across the region. Facebook remains the Middle East’s most popular network however its presence is notability weaker in the KSA and Kuwait. A fairly new entrant to the social media landscape, Pinterest is gaining popularity across the region led by a 21% usage rate in Qatar.
I DO
NO
T U
SE S
OC
IAL
MED
IA
68 #stateofpayments
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0
76.5
%
49.0
%
51.4
%
38.0
%
51.8
%
61.2
%
TWIT
TER
FAC
EBO
OK
GO
OG
LE+
LIN
KED
IN
INST
AGRA
M
PIN
TERE
ST
WO
RDPR
ESS
FLIC
KR
YOU
TUBE
11.0
%
5.1%
3.5%7.
5%
SOCIAL NETWORKSKUWAIT
Just like other areas of the world, the Middle East has embraced social media. It is estimated that between 85% and 90% of the region’s online population use social media daily representing a potential audience of nearly 100 million people. With such a massive number of potential customers browsing daily it’s no wonder businesses are scrambling to improve their social presence.
The popularity of social networks varies across the region. Facebook remains the Middle East’s most popular network however its presence is notability weaker in the KSA and Kuwait. A fairly new entrant to the social media landscape, Pinterest is gaining popularity across the region led by a 21% usage rate in Qatar.
I DO
NO
T U
SE S
OC
IAL
MED
IA
69#stateofpayments
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0
93.4
%
53.0
%
43.0
% 50.3
%
49.7
%
47.7
%
FAC
EBO
OK
GO
OG
LE+
LIN
KED
IN
INST
AGRA
M
PIN
TERE
ST
WO
RDPR
ESS
FLIC
KR
YOU
TUBE
14.6
%
4.6%
2.0%
2.6%
SOCIAL NETWORKSLEBANON
Just like other areas of the world, the Middle East has embraced social media. It is estimated that between 85% and 90% of the region’s online population use social media daily representing a potential audience of nearly 100 million people. With such a massive number of potential customers browsing daily it’s no wonder businesses are scrambling to improve their social presence.
The popularity of social networks varies across the region. Facebook remains the Middle East’s most popular network however its presence is notability weaker in the KSA and Kuwait. A fairly new entrant to the social media landscape, Pinterest is gaining popularity across the region led by a 21% usage rate in Qatar.
I DO
NO
T U
SE S
OC
IAL
MED
IA
TWIT
TER
70 #stateofpayments
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0
88.5
%
46.0
% 54.0
%
44.1%
37.5
%
51.0
%
TWIT
TER
FAC
EBO
OK
GO
OG
LE+
LIN
KED
IN
INST
AGRA
M
PIN
TERE
ST
WO
RDPR
ESS
FLIC
KR
YOU
TUBE
10.3
%
3.4% 5.
1%
4.9%
SOCIAL NETWORKSJORDAN
Just like other areas of the world, the Middle East has embraced social media. It is estimated that between 85% and 90% of the region’s online population use social media daily representing a potential audience of nearly 100 million people. With such a massive number of potential customers browsing daily it’s no wonder businesses are scrambling to improve their social presence.
The popularity of social networks varies across the region. Facebook remains the Middle East’s most popular network however its presence is notability weaker in the KSA and Kuwait. A fairly new entrant to the social media landscape, Pinterest is gaining popularity across the region led by a 21% usage rate in Qatar.
I DO
NO
T U
SE S
OC
IAL
MED
IA
71#stateofpayments
84.8
%
47.7
% 55.0
%
49.7
%
52.3
% 60.9
%
TWIT
TER
FAC
EBO
OK
GO
OG
LE+
LIN
KED
IN
INST
AGRA
M
PIN
TERE
ST
WO
RDPR
ESS
FLIC
KR
YOU
TUBE
21.2
%
6.0%
4.0%6.6%
SOCIAL NETWORKSQATAR
Just like other areas of the world, the Middle East has embraced social media. It is estimated that between 85% and 90% of the region’s online population use social media daily representing a potential audience of nearly 100 million people. With such a massive number of potential customers browsing daily it’s no wonder businesses are scrambling to improve their social presence.
The popularity of social networks varies across the region. Facebook remains the Middle East’s most popular network however its presence is notability weaker in the KSA and Kuwait. A fairly new entrant to the social media landscape, Pinterest is gaining popularity across the region led by a 21% usage rate in Qatar.
I DO
NO
T U
SE S
OC
IAL
MED
IA
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0
72 #stateofpayments
60%40%
66%34%
62%38%
78%22%
73%27%
72%28%
66%34%
UAE KSA EGYPT KUWAIT LEBANON JORDAN QATAR
BUYERS BY GENDERS
Male shoppers continue to buy more online than women. This trend is most pronounced in Egypt where men account for nearly 80% of all online transactions. The UAE shows more female inclusion in the online economy with females accounting for 40% of all online transactions.
With the online economy becoming a critical aspect of day to day life, it should be a focus of Arab governments to help extend these technologies to the entire population.
73#stateofpayments
AGE GROUPUNITED ARAB EMIRATES
30-34 year olds now represent the largest ecommerce market in the Arab World. Brands looking to succeed in Middle Eastern markets will have to ensure that large portion of their marketing e�orts appeal to them.
Firms in Saudi Arabia, Egypt, and Lebanon should also look to target the younger 18-25 bracket as this age group accounts for a substantial portion of the online shopping population.
One notable outlier found in our demographics research is Qatar’s older, 40+ age group appears to be very active in the ecommerce space. Companies that look to target this demographic may want to explore Qatar for further ecommerce expansion.
18-25 26-35 36-40 41-50 51+
23%17%
23%
13%
24%
50%
40%
30%
20%
10%
0
74 #stateofpayments
AGE GROUPKINGDOM OF SAUDI ARABIA
30-34 year olds now represent the largest ecommerce market in the Arab World. Brands looking to succeed in Middle Eastern markets will have to ensure that large portion of their marketing e�orts appeal to them.
Firms in Saudi Arabia, Egypt, and Lebanon should also look to target the younger 18-25 bracket as this age group accounts for a substantial portion of the online shopping population.
One notable outlier found in our demographics research is Qatar’s older, 40+ age group appears to be very active in the ecommerce space. Companies that look to target this demographic may want to explore Qatar for further ecommerce expansion.
18-25 26-35 36-40 41-50 51+
26%
14%
21%
17%
22%
50%
40%
30%
20%
10%
0
75#stateofpayments
AGE GROUPEGYPT
30-34 year olds now represent the largest ecommerce market in the Arab World. Brands looking to succeed in Middle Eastern markets will have to ensure that large portion of their marketing e�orts appeal to them.
Firms in Saudi Arabia, Egypt, and Lebanon should also look to target the younger 18-25 bracket as this age group accounts for a substantial portion of the online shopping population.
One notable outlier found in our demographics research is Qatar’s older, 40+ age group appears to be very active in the ecommerce space. Companies that look to target this demographic may want to explore Qatar for further ecommerce expansion.
18-25 26-35 36-40 41-50 51+
23%
14%
18%
25%
20%
50%
40%
30%
20%
10%
0
76 #stateofpayments
AGE GROUPKUWAIT
30-34 year olds now represent the largest ecommerce market in the Arab World. Brands looking to succeed in Middle Eastern markets will have to ensure that large portion of their marketing e�orts appeal to them.
Firms in Saudi Arabia, Egypt, and Lebanon should also look to target the younger 18-25 bracket as this age group accounts for a substantial portion of the online shopping population.
One notable outlier found in our demographics research is Qatar’s older, 40+ age group appears to be very active in the ecommerce space. Companies that look to target this demographic may want to explore Qatar for further ecommerce expansion.
18-25 26-35 36-40 41-50 51+
33%
15%
19%
9%
24%
50%
40%
30%
20%
10%
0
77#stateofpayments
AGE GROUPLEBANON
30-34 year olds now represent the largest ecommerce market in the Arab World. Brands looking to succeed in Middle Eastern markets will have to ensure that large portion of their marketing e�orts appeal to them.
Firms in Saudi Arabia, Egypt, and Lebanon should also look to target the younger 18-25 bracket as this age group accounts for a substantial portion of the online shopping population.
One notable outlier found in our demographics research is Qatar’s older, 40+ age group appears to be very active in the ecommerce space. Companies that look to target this demographic may want to explore Qatar for further ecommerce expansion.
18-25 26-35 36-40 41-50 51+
25%
15%18%17%
25%
50%
40%
30%
20%
10%
0
78 #stateofpayments
AGE GROUPJORDAN
30-34 year olds now represent the largest ecommerce market in the Arab World. Brands looking to succeed in Middle Eastern markets will have to ensure that large portion of their marketing e�orts appeal to them.
Firms in Saudi Arabia, Egypt, and Lebanon should also look to target the younger 18-25 bracket as this age group accounts for a substantial portion of the online shopping population.
One notable outlier found in our demographics research is Qatar’s older, 40+ age group appears to be very active in the ecommerce space. Companies that look to target this demographic may want to explore Qatar for further ecommerce expansion.
18-25 26-35 36-40 41-50 51+
19% 18%
27%
17%19%
50%
40%
30%
20%
10%
0
79#stateofpayments
AGE GROUPQATAR
30-34 year olds now represent the largest ecommerce market in the Arab World. Brands looking to succeed in Middle Eastern markets will have to ensure that large portion of their marketing e�orts appeal to them.
Firms in Saudi Arabia, Egypt, and Lebanon should also look to target the younger 18-25 bracket as this age group accounts for a substantial portion of the online shopping population.
One notable outlier found in our demographics research is Qatar’s older, 40+ age group appears to be very active in the ecommerce space. Companies that look to target this demographic may want to explore Qatar for further ecommerce expansion.
18-25 26-35 36-40 41-50 51+
23%19%19%
11%
28%
50%
40%
30%
20%
10%
0
80 #stateofpayments
4%
8%
14%
22%
32%
19%
Less than $266 $266 - 532 $533 - 1065 $1066 - 2665 $2666+ Prefer no to say/Don’t know
INCOME LEVELUNITED ARAB EMIRATES
The spread of income distribution remains fairly consistent across Qatar, Kuwait, the UAE, Saudi Arabia and Lebanon. These countries all see a large proportion of their population fall within the higher income brackets. Qatar tops our list with 67% of respondents identifying in the top two income brackets.
Egypt and Jordan on the other hand have a larger proportion of consumers that fall into the lower end of the income spectrum. For Egypt 68% of respondents identified in the sub $1,065 per month brackets; in Jordan this number was 56%.
For businesses looking to break into the various countries across the region it will be important to understand the income landscape and provide products tailored the countries average income level.
50%
40%
30%
20%
10%
0
81#stateofpayments
10%
14% 15%
22%
17%
22%
Less than $266 $266 - 532 $533 - 1065 $1066 - 2665 $2666+ Prefer no to say/Don’t know
INCOME LEVELKINGDOM OF SAUDI ARABIA
The spread of income distribution remains fairly consistent across Qatar, Kuwait, the UAE, Saudi Arabia and Lebanon. These countries all see a large proportion of their population fall within the higher income brackets. Qatar tops our list with 67% of respondents identifying in the top two income brackets.
Egypt and Jordan on the other hand have a larger proportion of consumers that fall into the lower end of the income spectrum. For Egypt 68% of respondents identified in the sub $1,065 per month brackets; in Jordan this number was 56%.
For businesses looking to break into the various countries across the region it will be important to understand the income landscape and provide products tailored the countries average income level.
50%
40%
30%
20%
10%
0
82 #stateofpayments
22%
26%
20%
10%
5%
17%
Less than $266 $266 - 532 $533 - 1065 $1066 - 2665 $2666+ Prefer no to say/Don’t know
INCOME LEVELEGYPT
The spread of income distribution remains fairly consistent across Qatar, Kuwait, the UAE, Saudi Arabia and Lebanon. These countries all see a large proportion of their population fall within the higher income brackets. Qatar tops our list with 67% of respondents identifying in the top two income brackets.
Egypt and Jordan on the other hand have a larger proportion of consumers that fall into the lower end of the income spectrum. For Egypt 68% of respondents identified in the sub $1,065 per month brackets; in Jordan this number was 56%.
For businesses looking to break into the various countries across the region it will be important to understand the income landscape and provide products tailored the countries average income level.
50%
40%
30%
20%
10%
0
83#stateofpayments
5% 5%
14%
30%29%
17%
Less than $266 $266 - 532 $533 - 1065 $1066 - 2665 $2666+ Prefer no to say/Don’t know
INCOME LEVELKUWAIT
The spread of income distribution remains fairly consistent across Qatar, Kuwait, the UAE, Saudi Arabia and Lebanon. These countries all see a large proportion of their population fall within the higher income brackets. Qatar tops our list with 67% of respondents identifying in the top two income brackets.
Egypt and Jordan on the other hand have a larger proportion of consumers that fall into the lower end of the income spectrum. For Egypt 68% of respondents identified in the sub $1,065 per month brackets; in Jordan this number was 56%.
For businesses looking to break into the various countries across the region it will be important to understand the income landscape and provide products tailored the countries average income level.
50%
40%
30%
20%
10%
0
84 #stateofpayments
5%
8%
14%
30%32%
11%
Less than $266 $266 - 532 $533 - 1065 $1066 - 2665 $2666+ Prefer no to say/Don’t know
INCOME LEVELLEBANON
The spread of income distribution remains fairly consistent across Qatar, Kuwait, the UAE, Saudi Arabia and Lebanon. These countries all see a large proportion of their population fall within the higher income brackets. Qatar tops our list with 67% of respondents identifying in the top two income brackets.
Egypt and Jordan on the other hand have a larger proportion of consumers that fall into the lower end of the income spectrum. For Egypt 68% of respondents identified in the sub $1,065 per month brackets; in Jordan this number was 56%.
For businesses looking to break into the various countries across the region it will be important to understand the income landscape and provide products tailored the countries average income level.
50%
40%
30%
20%
10%
0
85#stateofpayments
5%
19%
32%
28%
7%9%
Less than $266 $266 - 532 $533 - 1065 $1066 - 2665 $2666+ Prefer no to say/Don’t know
INCOME LEVELJORDAN
The spread of income distribution remains fairly consistent across Qatar, Kuwait, the UAE, Saudi Arabia and Lebanon. These countries all see a large proportion of their population fall within the higher income brackets. Qatar tops our list with 67% of respondents identifying in the top two income brackets.
Egypt and Jordan on the other hand have a larger proportion of consumers that fall into the lower end of the income spectrum. For Egypt 68% of respondents identified in the sub $1,065 per month brackets; in Jordan this number was 56%.
For businesses looking to break into the various countries across the region it will be important to understand the income landscape and provide products tailored the countries average income level.
50%
40%
30%
20%
10%
0
86 #stateofpayments
3%
13%
5%
25%
42%
12%
Less than $266 $266 - 532 $533 - 1065 $1066 - 2665 $2666+ Prefer no to say/Don’t know
INCOME LEVELQATAR
The spread of income distribution remains fairly consistent across Qatar, Kuwait, the UAE, Saudi Arabia and Lebanon. These countries all see a large proportion of their population fall within the higher income brackets. Qatar tops our list with 67% of respondents identifying in the top two income brackets.
Egypt and Jordan on the other hand have a larger proportion of consumers that fall into the lower end of the income spectrum. For Egypt 68% of respondents identified in the sub $1,065 per month brackets; in Jordan this number was 56%.
For businesses looking to break into the various countries across the region it will be important to understand the income landscape and provide products tailored the countries average income level.
50%
40%
30%
20%
10%
0
87#stateofpayments
Inside the mind of today’s Arab shoppers
SHOP OFFLINE
RESEARCH ONLINE, SHOP ONLINE
RESEARCH OFFLINE, SHOP OFFLINE
RESEARCH ONLINE, SHOP ONLINE OR OFFLINE DEPENDING ON PRICE
RESEARCH ONLINE
SHOP ONLINE RESEARCH OFFLINE
17%
21%
2%
31%
29%
UAE LEADS ONLINE SHOPPIN
G B
Y
The role the internet plays in consumer shopping remains varied. 17% of shoppers say they complete their entire shopping journey online and 67% are doing their research online. For many users the cost of an item is a major consideration when choosing between purchasing online or o�ine, 29% of shoppers say price is the deciding factor. This is particularly true for the UAE where 39% of shoppers say the price of a product a�ects whether they buy online.
Across the Middle East online shopping continues to grow with 61% of the population shopping online. The UAE is leading the region with 71% of the country shopping online; both Jordan and Morocco remain behind with 50% of the population remaining o�ine.
SHOPPING BEHAVIOURIN THE REGION
ONLINE SHOPPINGIN THE ARAB WORLD
CONSUMER SURVEY INFOGRAPHICUnderstanding the unique demographics and habits of consumers across the Middle East is a powerful tool for businesses within the region. This year we’ve collected a range of information you can use to better adapt to the Middle East’s unique consumer base. With data covering the o�ine to online transition, preferred payment options, as well as security and privacy concerns, this infographic provides everything you need to better understand the Middle Eastern ecommerce market.
Online shoppers in the region are slowly increasing their purchase frequency with 53% of the population making at least one purchase per month. Though still lagging behind more developed online marketplaces, this is a positive sign that confidence in Arab ecommerce is continuing to grow.
KUWAITISHOP VIAMOBILE
56%
EGYPTIANSSHOP VIA
MOBILE
42%
67%DESKTOP
24%TABLETS
49%MOBILE
ONLINE SHOPPINGFREQUENCY
7%9%
16%
21%
14%
34%
TWICE AMONTH
ONCE AMONTH
TWICE AWEEK
ONCE PERWEEK
ONCE IN2 MONTHS
ONCE IN 3 - 6 MONTHS
53%PURCHASE AT LEASTONCE PER MONTH
DEVICE OF CHOICE FORONLINE SHOPPERSThe introduction of tablets and smartphones has opened a range of innovative shopping experiences around the world and the Arab market is no exception.
Mobile devices are quickly becoming a staple of ecommerce with nearly 50% of customers using their phones to complete their online shopping.
In countries with high smartphone penetration such as Kuwait, mobile based shopping has been adopted by 56% of the population. In contrast Egypt currently only has 42% of its population shopping via mobile devices.
ONLINE SHOPPING ISCOMFORTABLE
8%
FITS MY BUSYLIFESTYLE
4%
EASY RETURNS
4%
OTHERS
2%
PRODUCTVARIETY
27%
UNIQUE STUFF
23%
BETTER PRICES
33%
WHY DO YOUSHOP ONLINE?Online shopping can o�er many advantages over traditional brick and mortar stores. For the Arab world, the wide variety of products is a major driver for shopping online.
Other important factors include the ability to find ‘niche’ products and overall better deals. Surprisingly ‘convenience’ does not appear to be a consideration for Arab shoppers.
89#stateofpayments
Arab shoppers are buying a range of products and services online. Mobile phones proved to be the most popular products with 45% of shoppers claiming to have bought their device online. Flight tickets also remain a common product with clothing, bill payments and watch purchases rounding out the top 5.
WHAT TYPE OF PRODUCTS AREARAB SHOPPERS BUYING
38%UTILITIES BILLS
40%CLOTHES
44%FLIGHT TICKETS
45%MOBILE PHONES
33%WATCHES
24%BAGS
26%LAPTOPS
26%SHOES
29%HOME APPLIANCES
31%PERFUMES
3%OTHERS
13%HOME FURNISHINGS
15%COLLECTIBLES
19%CAMERAS
21%BOOKS
23%TABLETS, PCS
12%TVS
12%VIRTUAL GOODS
8%HOME
DXB - HYD
3:26
TOP FIVE PRODUCTSBY COUNTRY
MOBILEPHONESEGYPT
UTILITIESBILLS
LAPTOPS TABLETS CLOTHES
61% 38% 37% 35% 34%
UAEFLIGHTTICKETS
CLOTHES MOBILEPHONES
UTILITIESBILL
WATCHES
55% 43% 42% 36% 35%
KSA CLOTHES FLIGHTTICKETS
WATCHES MOBILEPHONES
UTILITIESBILL
41% 40% 38% 38% 38%
KUWAITFLIGHTTICKETS
UTILITIESBILLS
PERFUMES CLOTHES MOBILEPHONES
55% 48% 39% 36% 35%
WHAT SITES ARE POPULARIN THE ARAB WORLD
90#stateofpayments
Souq.com has found the most success in the region with nearly 75% of shoppers going to the site for their shopping needs. Despite minimal support in the region Amazon is the number two site, likely a result of their vast inventory and range of niche products.
40%74% 20%
6%8%
4O% 21%
14% 12%
OTHERS
With better prices bringing more Arab shoppers into the online realm, it’s no surprise that when it comes to completing the transaction price has the biggest influence. Fifty five percent of shoppers say that the ‘best deal’ impacts their final decision.
Past experience with the website as well as product reviews and recommendations from friends also a�ect a shopper’s decision to buy.
While ads and email marketing have some impact, price and third party reviews are what influence shoppers.
WHAT INFLUENCESARAB SHOPPERS
BESTDEALS
PRODUCTREVIEW
FRIENDSRECOMMENDATION
HOW SHOPPERS ARE INFLUENCED
55% 39% 31%
13%
13%
17%
1%
ADVERTISMENTS
TV ADS
GOOGLE ADS
FACEBOOK ADS
OTHER CHANNELS
EMAIL SUBSCRIPTION 14%
PAST EXPERIENCE WITH THE SAME WEBSITE 41%
For many shoppers, the o�ine experience keeps them from exploring online shopping options. The ability to touch and interact with the product before buying remains an important aspect of the shopping experience for many shoppers.
Though it’s di�cult to replicate product interactions in the online space, providing better return policies and more on site discounts can easily be translated to an ecommerce platform.
PREFER TO TOUCHTHE PRODUCT
BETTER RETURNPOLICIES
55% 36%
OTHERSNO SHIPPINGFRUSTRATION
30% 2%
IN-STOREDISCOUNTS
29%
NO PRODUCTDISAPPOINTMENT
45%
INSTANTGRATIFICATION
32%
QUALITY TIMEWITH FAMILY & FRIENDS
27%
Reviews play an important role in the online shopping experience globally and this trend is also apparent in the Arab world. With 9 out of 10 people checking reviews before making an online purchase, they have the potential to make or break a sale.
While over 90% of individuals rely on reviews to aid in their decisions, only 60% regularly give feedback after a purchase. This leaves 60% of consumers informing 90% of future shoppers.
REVIEWS MATTER TO ONLINE SHOPPERS
9/10PEOPLE CHECK
REVIEWSBEFORE ONLINEPURCHASE
LEARNING FROMOFFLINE SHOPPING
BEHAVIOUR
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PAYMENT, SECURITY & PRIVACY
Cash on Delivery continues to be the most popular payment option in the region with 50% of shopper preferring this method of payment. This preference is most prevalent in Egypt where 70% of the shopping population prefers Cash on Delivery.
The more ecommerce friendly credit card method is beginning to close the gap, with the UAE seeing 1/3 of shoppers selecting credit card as their preferred payment method. With credit card penetration growing year on year cash on delivery will begin to fade.
Cash still dominates o�ine shopping however with 80% of o�ine shoppers preferring to pay with cash at brick and mortar locations. This trend is most prominenet in Egypt where 91% of o�ine transactions are settled with cash.
HOW DO ARAB SHOPPERSWANT TO PAY
WHAT INFLUENCES ARAB SHOPPERS
CASH ON DELIVERY
CREDIT CARD
PREPAID CASH CARDS
DEBIT CARD
NET BANKING
CREDIT CARD INSTALMENTS PLAN
OTHER
51%
26%
8%
6%
5%
3%
1%
PROCEED TO CHECKOUT
91% OF EGYPT SHOPPERSSELECT CASH
33% OF UAE SHOPPERSSELECT CREDIT CARD
Privacy and security remain major concerns for shoppers across the region. While there have been dramatic improvements over the last five years, confidence in online shopping is still lower than in more mature markets.
SECURITY & PRIVACY
HOW CONFIDENT ARE YOU THAT YOUR PERSONALINFORMATION IS KEPT CONFIDENTIAL
36%
24%
22%
11%
7%
QUITE CONFIDENT
MODERATELY CONFIDENT
EXTREMELY CONFIDENT
SLIGHTLY CONFIDENT
NOT AT ALL CONFIDENT
HOW CONFIDENT ARE YOU THAT YOUR PAYMENTINFORMATION IS SECURE
35%
23%
22%
12%
9%
QUITE CONFIDENT
MODERATELY CONFIDENT
EXTREMELY CONFIDENT
SLIGHTLY CONFIDENT
NOT AT ALL CONFIDENT
HOW OFTEN DO PRIVACY CONCERNSPREVENT A PURCHASE
29%
29%
16%
14%
12%
MOST OF THE TIME
ABOUT HALF THE TIME
ONCE IN A WHILE
ALWAYS
NEVER
Those shoppers that remain o�ine cite not having a credit card and a lack of trust in the payment systems as their main reasons for not embracing online shopping.
In Egypt for example low credit card penetration continues to disrupt ecommerce with 39% of the population remaining o�ine due to a lack of credit card. The Kuwaiti population exemplifies online payment trust issues with 56% of shopper claiming they do not trust online payments.
For businesses, communicating security features and educating consumers remains critical to the success of ecommerce in the region. At the same time banks need to find solutions that enable more consumers to participate in the digital marketplace.
As these two critical issues are addressed a greater shift to ecommerce will be seen across the region.
HOW TO BRING THE REMAININGARAB SHOPPER ONLINE
WHAT DO YOU THINK ABOUT THE 3D SECURE SYSTEM?
3D Secure is an internationally recognised security standard for online credit card payments which has recently made its way to the region; It adds an additional security layer for online credit and debit card transactions and aims to prevent online fraud.
Though still new to the region the security feature is resonating well with the population. It is proving most popular in the UAE, KSA and Kuwait where well over 50% of shopper say it makes them feel more secure. Egypt is still catching up however with only 43% of the population feeling more secure and 36% concerned about entering banking details on a 3rd party site.
HOW DOES 3D SECURE IMPACTSHOPPER CONFIDENCE?
I LIKE BECAUSEMORE SECURE
HATE FORGETTABLEMORE PASSWORDS
52% 29% 19%
50%
UAE, KSA & KUWAITSHOPPERS FEEL SECURE
USING 3D SECURE
LOCAL ONLINESERVICES ARE
NOT GOOD
11%
OTHERS
10%
DON’T TRUSTONLINE PAYMENTS
44%
DON’T HAVECREDIT CARDS
35%WHY DON’T YOU SHOP ONLINE
DONT TRUST 3RD PARTY SERVICES
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Overcoming E-Commerce Challenges in the Middle East
FAILURE FROM 3D SECURE
In the ongoing fight to prevent fraud, credit card companies and banks are working with online retailers to implement 3D secure technologies – namely Verified by Visa and MasterCard Secure Code. 3D Secure o�ers an extra layer of protection for both cardholders and merchants. It works by requiring customers to enter an additional password after checkout completion to “verify” that they are the cardholder.
CHALLENGEEven with the extra security benefits, 3D Secure has seen mixed responses from retailers. Adding an additional step to what is for many already a complicated process means online businesses are being forced to make a tough decision; adopt 3D secure technology and risk abandoned sales or avoid the technology and take responsibility for fraudulent transactions.
So how can you determine if it’s right for your business and how can you minimize the impact 3D Secure has on your conversion rate?
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If you are startups or any business that don't have resources, you could go for 3D Secure option, you could tie up with 3rd party who helps you monitor transaction that's one of the possible solution, if you are a big merchant you can definitely hire your own team, integrate with a PSP who helps you monitor you transaction, you can connect with specialized 3rd party solution provides you a tool to help you in your risk management to save your conversion rate and don't forget 3D secure is not your only protection against fraud.
MAARID FAZILI - Risk Manager / PAYFORT
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FAILURE FROM 3D SECURE
POSSIBLE SOLUTIONSIt’s important to remember that your business’s particular situation will vary according to a unique mix of industry, markets, preferred card types, customer payment preferences, mobile/desktop experience, and many more.
To remain competitive while implementing 3D secure technology we encourage merchants to consider a dynamic approach, which includes the following points:
Take the time to customize your strategy: The first and most important step to e�ectively implementing 3D secure is to customize which transaction types should be routed through the technology. Take some time to think about what transactions pose the highest risk for your business and consider implementing 3D Secure as an extra security layer just for those specific purchases.
Make sure you educate your shoppers: As we discussed above, one of the main reasons 3D Secure has a high rate of abandonment is that shoppers are unaware of the process and become concerned it is a security threat. Merchants who work to proactively educate their shoppers about 3D secure and the security benefits it brings are far less likely to experience the drop o�.
Regularly re-evaluate: As your businesses continues to grow and expand to new markets, you’ll likely need to accept di�erent card types, and roll out new products, what works today may not necessarily be valid tomorrow. This is also true for attempted fraud, as fraudsters constantly change tactics in an attempt to beat the system.
PAYFORT INSIGHTSUnfortunately 3D secure has proven to be an obstacle for many merchants across the region. But as di�cult as it has been, it is important to recognize the importance security plays in the online marketplace and how neglecting these technologies can lead to larger trust issues in the region. Overall businesses should be prepared to help consumers adapt and work with them to integrate better security options.
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CREDIT CARD PENETRATION
Credit card penetration across the MENA region varies wildly between countries. Some countries such as Kuwait have nearly ubiquitous adoption with 97% of the population claiming to have access to a credit card while others, such as Egypt, see credit card penetration levels in the single digits. Other countries across the region see varying levels of adoption; the UAE has card penetration of 89%, KSA and Qatar ~45%, while Lebanon falls towards the lower end with 15%. CHALLENGEWith all that said, on average the MENA region remains behind many areas of the world of the in terms of credit card usage.
As a large percentage of adults across the Middle East still do not utilize a bank account, online retailers in the region are often forced to accept cash payments for online transactions.
This brings a range of challenges for merchants such as:Unexpected Returns – These comes as a loss for merchants when customers change their mind between the time of purchase and the time of delivery.
Fear of Theft – The agents responsible for delivery a required to handle large amounts of cash making them targets for potential thefts.
Slow Payments – COD payments take substantially more time to reach a company’s bank account, particularly if you are using third party services for collection.
Though for many businesses, credit card penetration isn’t something that they can address directly, there are opportunities for improving the landscape.
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For us we saw opportunity in the restrictions to allow people to pay the way they want to pay and just cater to local, Arabian or emerging market mentality.
FOUAD JERYES - Co-Founder / CASH Basha
One of challenges is to convert the localpayments methods such as: Fawry in Egypt, Sadad in Saudi Arabia, KNet in Kuwait and others in all the Arab world to the online world.
AHMED ORABY - Ecommerce Manager / Nile Air
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CREDIT CARD PENETRATION
SOLUTIONFor businesses, working with banks to encourage a wider range of credit card solutions is a strong first step. It is important that businesses communicate demand and o�er their insight into was modern consumer need to access the online market place. Finally, educating consumers on credit card payments and lobbying payment gateways to innovate on their behalf should be a top priority of all ecommerce businesses.
In the meantime ecommerce businesses need to work hard to understand what solutions which are preferred locally. Credit cards may not be popular but e-commerce businesses are already making significant headway in introducing alternative payment solutions to the region.
PAYFORT INSIGHTThe Middle East is still finding its comfort level for digital forms of payment. With a large portion of the population still without bank accounts it is likely that a portion of the population will remain inaccessible for some time. At the same time, it is interesting to see that while some resist digital, another portion of the Arab World is very eager to embrace it.
As result businesses will need a diverse range of payment products if they want to tap the full potential of the Arab market. As merchants grow they should constantly be identifying gaps in their payment services and working with gateways to find the best solutions for customers and online businesses alike.
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FRAUD AND RISK TOLERANCE
As consumers continue to demand simpler solutions and push towards ‘ease of use’, security is becoming a more di�cult challenge for big and small businesses alike. Today’s consumers are placing more value on speed and convenience, leading to a ‘convenience culture’ that is driving the cashless revolution. Whether it’s using contactless cards to pay for a co�ee, or a one-click purchase on Amazon, quick and easy is winning the war over secure.
CHALLENGEUnfortunately, as the new convenient technologies become widely accepted, risks to both businesses and consumers grow in parallel. In the case of ecommerce and online payments, the risks have materialized primarily in the form of identity theft and fraud.Fighting fraud and safeguarding transactions remains a minefield, with each payment type bringing its own risks. Whether the transaction is made using the well-established credit card or more novel technologies like the virtual wallet, security remains a constant concern.
What can you do to safe guard your business and how can you minimize daily risks of accepting online payments?
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ATISH THAPA - Business Head OTA / Musafir
If I really had to choose to pick a problem so Fraud and Risk would be the biggest challenge that I see right now in regards of online payments specially where 3D secure system is not in place but I could see lot of banks now opting for OTP which is one-time password generation.
MOHAMMAD AL-ANSARI - VP / Flyin
The most challenge in my opinion the acceptance ratio where the issuers sometimes reject the cards without a clear reason and all that a�ect the acceptance ratio. If you have a potential with a good revenue weekly so I could say that 65% of it roughly might be rejected sometimes for no clear reasons or sometimes less awareness from clients...
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FRAUD AND RISK TOLERANCE
POSSIBLE SOLUTIONThe steps you need to take to safeguard your business will depend on a range of factors including the products you provide, frequency of transactions, and whether you deal in the B2B or B2C space.
While you will need to constantly monitor and re-evaluate your risk management procedures to stay safe; implementing the below strategies will give you a strong foundation to build o� of.
Educate and train your sta� on e-commerce risk: As we mentioned above, the amount of risk your business faces will depend largely on internal practices as well as the fraud detection and prevention tools you use. It is important that everyone in your organization understands that online transactions can pose a risk to your business and that they are trained to follow established risk management procedures.
Focus on risk reduction: A well designed sales order process is an essential tool to help you address a wide range of risk concerns. Make sure you clearly label all required fields in your online payment acceptance form and verify all cardholder information that you receive from your customers over the internet.
Develop internal fraud prevention structure: For many businesses in ecommerce, the success and profitability of your organization depends on your internal fraud management strategies. Developing a strong risk management structure, that incorporates transaction controls and fraud prevention tools, will greatly reduce fraud-related losses.
Ensure PCI compliance: The Payment Card Industry (PCI) Data Security Standards (DSS) provide standard procedures and tools to help ecommerce businesses protect sensitive account information. To comply, you will need reliable encryption capabilities for data transmission and if you are storing cardholder information, e�ective internal controls. Be sure to check the DSS regularly and review your own security measures frequently.
PAYFORT INSIGHTThe move towards more streamlined shopping experiences has put a lot of pressure on merchants. Today’s consumer expects a faster and easier checkout while simultaneously enjoying more security. With such a focus on speed and convenience, it is di�cult for merchants to meet the needs of shoppers without making some compromises.
Businesses that can a�ord the investment to develop secure databases will likely stand to benefit from features like ‘One Click Checkout’ and detailed user profiles. Those that can’t must be careful not to sacrifice security in the interest of convenience. Establishing trust toward ecommerce and digital should be a priority for all merchants in the region.
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MOBILE PAYMENT
Over the past 5 years, the proliferation of mobile devices, particularly smartphones and tablets, has transformed the way people interact with the internet. Through streamlined mobile websites and dedicated applications, consumers have more control than ever over how they shop. Now this rapidly growing technology is poised to dramatically change the payment ecosystem, bringing new players such as mobile operators and handset manufacturers into the mix.
CHALLENGE
While mobile payments bring a lot of exciting opportunity for consumers, this fledging payment method is causing mixed responses amongst businesses. Di�cult challenges such as perceived security threats, cross platform support, and slow user adoption make it di�cult to justify the investment.
Unfortunately failure to adopt is not an option and ignoring new payment methods can quickly put companies at a competitive disadvantage. As we’ve seen with many modern technologies, the landscape often shifts rapidly and with little warning. To stay ahead businesses need to be prepared for quick changes and remain aware of how mobile payment technology is evolving.
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ANKIT SHUKLA - Relationship Manager / PAYFORT
ATISH THAPA - Business Head OTA / Musafir
Mobile penetration has grown up in the middle east thanks to the compatibility & users of the smart phones as well as the credit card penetration which is really high and that’s for simple reasons: Confidence Increased, More Responsive & a lot of choices given to customers.
In my opinion and based on my experience with Merchants that Mobile payments are the biggest advantage plus the biggest challenge in the ecommerce industry and there are 3 main challenges for mobile payments which are: Security, Awareness and cross border payments.
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MOBILE PAYMENT
POSSIBLE SOLUTIONMobility for customers will continue to inspire innovation and create new experiences. To stay relevant, your business will need to remain flexible and be prepared to support a range of mobile payment models as they enter the market. Though there is no clear cut solution on how to transition to the world of mobile payments, there are a few things your business can do to be more prepared.
• Stay on top of disruptive changes to payment behaviour that might disturb your existing revenue streams.
• Be prepared to run traditional and mobile payments options in parallel while the technology develops.
• Keep up-to-date on emerging standards for issuing credentials, making payments, and accepting payments as well as the business risks they create.
• Build relationships with new players, including mobile device suppliers, peer-to-peer payment services, wallet providers, loyalty applications, consumer credit scoring agencies, and others.
PAYFORT INSIGHTRemaining dynamic will be the key to navigating the transition to mobile payments both regionally and globally. The technology is improving at a rapid pace and it is a question of when, not if, mobile payments will takeover in the Middle East.
In the region, it’s important for Middle Eastern businesses to consider the varied levels of smartphone penetration and how it may guide their transition. For example, Saudi Arabia leads the region with 79% of their population using smartphones; this is followed by the UAE with 72%, Kuwait with 69%, Lebanon with 63%, and finally Egypt with only 6%. Companies will need to carefully consider where their core revenue will be generated and make sure they closely monitor smartphone behaviour in their region.
Businesses that work to understand the landscape and innovate alongside the new technologies will gain the most. This means understanding the benefits of mobile payments and using them to create better user experiences. Dedicating a team or even an individual to understanding the mobile payments will prove invaluable in the coming years.
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TRUST
When it comes to making any purchase there are many obstacles that can interfere with the sale. One of the biggest di�culties many Middle Eastern businesses face still relate to 'Trust'. At the end of the day if consumers don't trust you, you're never going to sell anything, regardless of how good your product is. Making sure your customers have faith in your organization is paramount if you are going to be successful. Trust is not only important when attracting new customers, but also for building a network of loyal repeat-buyers.
CHALLENGEOnline shopping brings the trust issue to a whole new level. The delay between consumer payment and actually receiving the product, the risk of falsified images and descriptions, or even the potential of an outright scam, leave many consumers wary of the online marketplace.
What makes trust such a large issue is that there is no simple way to address it; no magic bullet that will simultaneously make all retailers honest and all consumers comfortable. In many cases it simply takes time and a degree of consumer training to help them feel truly secure while shopping online. With all that said there are a few di�erent techniques that businesses can use to make the overall process better for consumers and help push user through that learning curve of online shopping.
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Including that Egypt still has defied gain confidence for payment through credit cards,I think that the diversification of payment methods from basic solutions that will help develop confidence among shoppers.
HUSSEIN ALSAKKAF - CEO / GoEjaza
REMO GIOVANNI - Managing Director / Travelstart
One of the biggest challenge for us is to get the trust from our customers which means to let them feel safe and secure when they shop on our website and the way how we worked on this was to o�er Alternative payments options that helped us to get the customer confidence to pay online.
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TRUST
POSSIBLE SOLUTIONAchieving trust online is always more di�cult than gaining trust in person at a brick and mortar shop, simply because you will not have the opportunity to reassure the person face-to-face. However, there are a few simple techniques you can use to help build trust on your ecommerce site and make your customers feel confident while they shop.
Invest in Usability and Design: For the average internet user, it only takes 15 seconds for them to decide whether to stay or leave. This means your site’s appearance and first impression matters, a lot. Make sure that your website has a professional look and feel that exudes reliability in every way. Your site will need attractive visuals, well written and error free content, links that actually work and fast loading times throughout the site. Usability also needs to extend to the sites payment gateway; invest in a robust platform that provides well known payment methods and thoroughly tested security.
Deliver Great Customer Service: Aside from responding to every email, social question and general inquiry you receive, if you want to ensure customer trust you need to make sure these responses satisfy the customer. An e�ective way to get started is to create a simple and easy to locate web form where users can ask questions. Route these questions to a central support mailbox and filter based on question type. To really impress customers you can send out auto-responses that notify the message has been received and follow up with a personal response at a later time.
Finally if you really want to develop a lasting customer relationship and improve trust, you’ll need to be prepared to extend you customer service needs to beyond the final sale. Services such as free returns and warranty support help to show customers that you believe in the products and services you provide, and you are willing to put down your own money to prove it.
Be up Front about Pricing: Each day thousands of transactions are lost due to abandoned shopping carts. With such a huge problem at hand you may be wondering what leads customers to desert their shopping experience. The answer is hidden costs. If you really want to gain trust be sure to disclose full costs as soon as possible in the shopping process. If you try to hide costs such as shipping and reveal them at the last moment, the customer will feel deceived and will be far less likely to continue with your business.
PAYFORT INSIGHTThe examples we shared above are just a few of the changes you can implement to make your site feel more secure and start building trust. However if you really want to provide the best experiences and build better relationships with your clients, try thinking like a consumer. If you were buying something from you site, what security measures and support elements would you like to see? The more you start to think about your ecommerce as a consumer, the better experience you'll be able to provide.
Finally, remember what we shared earlier in this section; trust takes time. Be prepared to work with customers and adapt to their needs if you want to become their go to ecommerce shop.
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E-COMMERCEUTOPIA
ECOMMERCE UTOPIA
Over the past 20 years, the internet has changed the way the world exchanges goods and services. Do you remember buying airline tickets before the internet? Can you imagine buying a new computer or car without doing at least some level of web research?
In the mid-1980s, CompuServe added a service called the Electronic Mall, where users could purchase items directly from 110 online merchants. While the Electronic Mall wasn't a huge success in its day, it helped paved the way the ecommerce we see today.
As the ecommerce market continues to grow and evolve, we are striving to create a marketplace that empowers consumers and allows businesses to deliver their products as e�ciently as possible. It is a world which we are still building virtual brick by virtual brick, but as every year passes we are moving closer to an ecommerce utopia.
Daydreams are a tool we can use to rehearse for the future and imagine new opportunities without risk. Allowing the mind to roam freely can aid creativity—but only if we pay attention to the content of our daydreams. That’s why we are inviting you to ecommerce utopia where you can explore some of the dreams and goals for the future of ecommerce on this planet.
Single Domain for All Your Needs
We can all agree that variety is one of the single biggest advantages of online shopping. The fact that in today’s world we can buy food, electronics, clothes and even a new car without leaving our home is absolutely amazing. But as incredible as today’s shopping experience is, in the ecommerce Utopia customers will be able to find anything and everything they want at on single, simple to navigate site.
Companies like Amazon, eBay and Alibaba are all fighting to achieve this goal, adding more products every day and ecommerce aggregators are continuing to grow larger and larger each year. In an ecommerce utopia, finding the product you want will be as simple as typing ‘Shop’ into Google.
Automatic Enrollment and Permanent Credential Storage
A major obstacle for the ecommerce world has always been collecting consumer information, particularly emails, phone numbers and credit card details. In ecommerce utopia our single shopping space uses existing databases to automatically enroll consumers; minimizing the hassle for both shoppers and businesses.
In addition to a simple and automatic enrollment process, ecommerce utopia provides permanent and secure credential storage for all users. O�ering benefits for both consumers and businesses, permanent credential storage means no more logging in and most importantly features like one click shopping.
Analytics to Better Direct Shopping Experience
Though there have been some concerns with consumers ‘over indulging’, there’s no denying that analytics and algorithms can be a very useful tool for shoppers hunting for new products. Ecommerce utopia brings some of the industry’s top algorithms together to not enhance an organization’s conversion rate but also ensure that consumers get exactly what they want when they when they want it.
Price Protection
Everyone knows the fear of paying too much, and for many consumers this can be a defining issue purchasing a product or abandoning the sale. One of the most powerful tools available to ease this fear is product price protection. In ecommerce utopia, this type of service will be provided to all customers, guaranteeing a fair and secure price on all purchases. For users who find the same product at a cheaper price, a credit for the di�erence will be deposited directly into their account. By erasing the fear of short term price drops consumers are far more likely to follow through with their purchases resulting in higher transaction volumes and a more reliable online marketplace.
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Pay on Arrival and One Click Buy
A major obstacle that continues to slow the adoption of ecommerce is trust. Many consumers are wary of buying online and scared of potential scams; as a result they do not feel comfortable sharing their financial information during the checkout process. To alleviate these stresses Ecommerce Utopia provides a streamlined checkout and unique payment procedures that put customers at ease.
The aforementioned “Automatic Enrolment” means customers no longer need to enter their financial details to complete a purchase allowing one click purchases. To help put the shoppers at ease regarding fraud payments are only finalized after the product has been delivered.
Same Day Shipping to Your Location
Instant gratification is something that online businesses around the world still struggle to achieve. In ecommerce utopia same day shipping is standard on all purchases and best of all products are shipped to you not your address using you phones GPS.
Free and Easy Returns
Ecommerce utopia encompasses every aspect of the online shopping experience, even when a customer isn’t happy with their purchase. For consumer’s that decide a product isn’t right returns are simple.Using the same direct to location shipping technology, a user simply needs to request a pickup at their current location and hand the product over. At handover the driver confirms pick up and the return is complete.
Rewards
Everyone loves to be rewarded and in ecommerce utopia consumers will be. Taking advantage of the same algorithms that direct shoppers the reward program is tailored to individual customers shopping habits to maximize their earnings.
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ABOUT THE REPORT
WHY STATE OF PAYMENTS?
Welcome to the State of Payments 2016 by PAYFORT. For the third year in a row we’re releasing our annual report that details the world of payments, ecommerce and innovation
across the Arab World.
We’ve collected data from both consumers and merchants to provide you with actionable insight you can use to create a more successful, profitable and consumer focused business.
Two years ago we released our first State of Payments report, something that evolved out of a desire to increase our own understanding of consumers in the region and share that
information with the growing business community throughout the Arab World.
In last year’s report, we strived to create something that not only contained the same consumer-centric data but also presented that data in a meaningful way. We wanted to create a fuller picture that incorporated the opinions of hundreds of merchants who
interact with consumers on a day-to-day basis.
In this year’s report we’ve once again reimagined how best to share the massive amount of data that is available within the Middle East’s ecommerce sectors. To do this we have refocused the report to not only explore current trends, but also address the real issues that
impact merchants on a day to day basis and share meaningful solutions for the future.
Over the past three years State of Payments has become our favourite content piece and we’d love to hear your thoughts on the report. Be sure to reach out via social media using the hashtag #StateofPayments or contact us via email [email protected] to share your thoughts. We have also provided a feedback section within the report where you can share
your thoughts.
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ABOUT THE REPORT
ABOUT THE REPORT
The report is divided into four main sections: Trends, Demographics, Consumer Survey,and Challenges.
Geographically the report covers Egypt, Lebanon, Jordan, Kuwait, Saudi Arabia, Qatarand the UAE.
The report uses responsive, interactive sections allowing you to easily navigate through the data and locate the specific information you need. We have collaborated with Kotobee.com as a partner of digital publishing to allow the report to all digital libraries We hope you like it and
use it as a starting point for a conversation about the state of payments in the Arab World.
ABOUT THE AUTHORS
This report was written and created by the PAYFORT Team. Content was provided by Amira Abou Shousha, Omar Soudodi and Nardeen Abdalla with visuals created by Seham Syed.
Special Thanks for PAYFORT team members Ankit Shukla, Dalia El Gammal, Haitham Hawam, Harun Ramakumaran, Maarid Fazili, Maryam Albassam, Mohamed Sayed, Mohammad Qudah, Mohammad Al-Rifai, Muteb Alobeiwi, Rami Makerm, Rohn Munsayac, Sanjay Ramchandani,
Shereen Ghazy.
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ABOUT THE REPORT
METHODOLOGY
The PAYFORT team took great care to curate the data within this report. We worked with a range of partners, merchants and consumers to collect the required information and
focused on presenting the data in useful and easy to understand formats.
The heart of our research was carried out using detailed surveys that polled hundreds of regional merchants and thousands of consumers across Egypt, Lebanon, Jordan, Kuwait,
Saudi Arabia, Qatar and the UAE
This data was then reviewed by our in-house team of market analysts and country managers to ensure that the data collected aligned with real world trends across the region.
We have included detailed notes on the individual sections below. If you have any questions don’t hesitate to email Amira Abou Shousha via [email protected]. Also please let us know if you’re looking for a little bit more information on any topic, we’ll try our best to get
you what you need.
SECTORS
Each sector discussed in this report represents a section of the overall online marketplace. We have provided brief descriptions of each sector for your reference.
AirlinesRepresents online transactions that occur with regionally based airlines and local carriers, this sector does not include independent travel agencies, booking services or airlines based
outside of the countries studied.
Travel & TourismRepresents online transactions with third party booking services, travel agencies, and other
tourism based organizations (e.g. Hotels)
Events and EntertainmentRepresents online transactions that relate to venue based events, this section does not
include entertainment products (videogames, online streaming services, movies, etc.)
EcommerceRepresents online transactions that relate to the purchase of products and tangible goods,
this does not include services.
Marketplace ServicesRepresents online transactions that relate to the purchase of web based services such as
online streaming and gaming, recruitment, maintenance, classifieds.
TRENDSMarket Size
Our team used a bottom-up approach to evaluate the market activity and calculate overall sector sizes. We studied the number of consumers within each market and combined that data with detailed user behaviour to accurately estimate overall market sizes. We then reached out to companies across the region to verify that our data aligned with real world
observations within their respective sectors.
The transaction data for this section includes all transactions completed online regardless of payment method. This includes ‘In person payments’,’Cards and ‘cash on delivery’ based
transactions.
Growth forecasts are based upon historical rates as per data gathered between 2011 – 2015.
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RatiosAcceptance and Refund ratios are based on data collected from businesses across the region. What is an acceptance ratio? This ratio simply tells us how many customers can successfully use their credit card on a website. This is based upon the number of credit card
transaction attempts and the number of those transactions that are approved.
What is a refund ratio? A refund occurs when the merchant and the customer agree to refund the purchase for one reason or another. Unlike chargebacks this transaction does
not involve the issuing bank.
All data collected was averaged to generate sector data and does not represent the performance of any single business within that sector.
SeasonalityThe data in these sections are not representative of the entire market and represent a projection based on surveyed merchants within each sector. The data is intended to provide a snapshot of the year’s seasonality across each sector however, due to
confidentiality requests we cannot reveal true transaction figures.
The figures charted on the graphs instead represent divergence from the 12 month average. So if transaction volume figure in September is 3,000 that means there were 3,000 more transactions
than the 12 month average.
The seasonality data is inclusive of online credit card transactions only. Cash-on-Delivery and in person transactions are not taken into consideration for this section.
DEMOGRAPHICS
The data in this section is based upon a survey of thousands of online buyers across Egypt, Lebanon, Jordan, Kuwait, Saudi Arabia, Qatar and the UAE collected using YouGov.
Additional data was sourced from and cross referenced with the World Bank database.
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CONSUMER SURVEY
Survey data was collected utilizing a YouGov based poll of thousands of consumers across the region. It also incorporates survey data gathered from industry responses to a custom survey created by PAYFORT. Respondents include SMEs (small and medium enterprises)
and enterprise level firms.
Some questions allowed respondents (consumers and businesses) to provide multiple answers and all respondents were not required to answer every question within the survey.
CHALLENGES
This section provides an overview of the key challenges PAYFORT has identified for ecommerce with the Middle East. This section draws information from interviews with
industry leaders and the PAYFORT strategy team.
Each challenge is structured to include a detailed breakdown of the problem, a list of potential solutions, and finally PAYFORT insight on how to best address these issues.
Ecommerce UtopiaThis section provides a look forward at what online business could become in the region and around the world. We consulted with PAYFORT team members from various
departments to identify major obstacles and creative solutions.
The section aims to spark the imagination and bring to light potential opportunities for the ecommerce businesses of tomorrow.
CURRENCY
All figures are in USD
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