The year 2020 catapulted payments years ahead of where they were projected to be and commerce looks very different in the post pandemic world. We’ve seen the rapid change that can occur in a digital world. Payment options are frequently evolving and competition over payment market share continues to increase.
Consumer payment preferences vary considerably around the world, reflecting an infinite diversity of historical, technical, cultural, economic and regulatory factors. Alternative payment methods like digital wallets are now in the mainstream.
Widespread disruptions created a profound shift in commerce and payments, accelerating the adoption of digital wallets in e-commerce while hastening the decline of cash at the point of sale.
📌 Digital wallets thrive as e-commerce surges
E-commerce exploded in 2020 to post the highest growth rate in five years as home-bound consumers sought alternatives to shuttered brick-and mortar stores. This model will continue to rule the modern world.
📌 Cash bids a hasty retreat amid POS contraction
Point-of-sale felt the impact of COVID-19 most directly, with 2020 global transaction volume falling by 5% from 2019. Disruptions in payment types were as equally dramatic as the reductions in total volume. COVID-19 is accelerating the pace of cash’s decline faster than even the most bullish projections.
📌 MEA e-commerce poised for explosive growth
The Middle East and Africa (MEA) remain among the last frontiers of under-tapped e-commerce potential. MEA consumers turned to e-commerce during the pandemic as demand for groceries, household supplies and personal care soared. Saudi Arabia and the UAE saw among the highest rates of new or increased users for online ordering of restaurant and online grocery deliveries.
On the strength of accelerated momentum in 2020, MEA e-commerce is projected to see 18.8% annual growth through 2024, nearly doubling from U.S.$55 billion in 2020 to U.S.$109 billion in 2024. UAE and Saudi Arabia are expected to grow at 20% and 8% respectively.
Looking ahead through 2024, we project digital wallets will gain the most ground, growing 45% to account for over a fifth of e-com spend by 2024. Those gains will come largely at the expense of COD, which is projected to lose over 28%. Cards look to maintain their share dominance, with credit cards making steady gains against other card types and projected to earn more than a third of e-com payment volume by 2024.
The Key Take-Aways
Analyse the recent digital payments and e commerce trends in the Middle East
Investigate the newest modern currency and considerations for entering different markets
Explore smarter insights needed to build a true omnichannel experience
Look at how to create smarter customer experiences by helping you understand which payment methods are popular and which new ones are on the rise
This Webinar is in Partnership with
FIS is a leading provider of technology solutions for merchants, banks and capital markets firms globally. Our employees are dedicated to advancing the way the world pays, banks and invests by applying our scale, deep expertise and data-driven insights. We help our clients use technology in innovative ways to solve business-critical challenges and deliver superior experiences for their customers. Headquartered in Jacksonville, Florida, FIS is a Fortune 500 company and is a member of Standard & Poor’s 500® Index.