ISLAMABAD: The Middle East, North Africa and Pakistan (MENAP) region is likely to witness significant growth in the e-commerce and digital payment industries in 2021, according to a report released by a global payment solution provider, Checkout.com, on Tuesday.
The report also claimed that nearly half of consumers will increase online shopping in the coming year.
Traditionally dominated by cash payments, the region has witnessed a behavioral shift during the coronavirus pandemic, making experts believe that people’s new shopping preferences are likely to persist even when the situation gets normal.
“While there has been a sudden surge in e-commerce and digital payments this year due to the impact of COVID-19, our report suggests what we are seeing today is more than a temporary change in consumer behavior. Our internal data shows an 86% increase in digital payment transactions on our platform since the start of the pandemic in the region,” said Sebastian Reis, EVP of Global E-commerce at Checkout.com, in a written statement.
“This presents a major opportunity for businesses across the MENAP region,” he continued. “However, to leverage this shift in consumer behavior and to succeed in what’s already a highly competitive space, businesses will need to offer not only the products and services consumers look for, but also the best online shopping experience, including payment processes that are safe, secure, and convenient for consumers.”
The report draws insights from a regional survey, which polled more than 5,000 consumers in September 2020 in the UAE, Saudi Arabia, Egypt, Jordan, Qatar, Kuwait, Bahrain, and Pakistan.
The pandemic is accelerating growth particularly in the online purchases of prepared meals (41%), clothing (37%), groceries (33%), and electronics (30%). While online orders of prepared meals and groceries appear to have surged evenly among males and females, men seem to be driving most of the e-commerce growth in electronics, and women account for a stronger increase in online clothing purchases.
The report further reveals that a majority (53%) of the region’s consumers most often pay for their online purchases using digital payments rather than cash on delivery (36%) or bank transfers (10%).
Digital payments are by far the most preferred payment method with online shoppers in the GCC, including Bahrain (74%), Qatar (66%), the UAE (64%), Kuwait (59%), and Saudi Arabia (54%). Meanwhile, cash on delivery is the preferred payment method in Pakistan (66%), Egypt (54%), and Jordan (51%).
“Robust digital payment options have become an integral part of what consumers expect from merchants, especially as e-commerce is more widely embraced in the MENAP region,” Reis added. “The more frequently consumers shop online, the more likely they are to pay by card or digital wallets rather than cash on delivery, making it clear that consumers are moving towards digital payments. Scaling digital payment platforms is thus a clear opportunity for merchants of all sizes to stay in step with consumer preferences and help build loyalty with their customers.”
The report says 47% of consumers across the eight countries say they expect to shop online more frequently over the next year. Only 15% expect their online shopping frequency to decline, while the remaining 38% expect it to remain about the same as now.
E-commerce, digital payments to increase in Middle East, Pakistan in 2021 — international survey
https://arab.news/6yc7e
E-commerce, digital payments to increase in Middle East, Pakistan in 2021 — international survey
- Checkout.com says digital payments have nearly doubled in the Middle East, North Africa and Pakistan region since the emergence of COVID-19
Pakistan reviews austerity measures amid Middle East crisis, urges strict nationwide implementation
- Deputy Prime Minister Ishaq Dar chairs review meeting of austerity steps
- Officials briefed on salary cuts, school closures, four‑day week, petrol conservation
ISLAMABAD: Pakistan’s government on Wednesday assessed progress on a sweeping set of austerity measures introduced to mitigate the country’s economic strain from sharply rising global oil prices and supply disruptions linked to the ongoing war in the Middle East.
Prime Minister Shehbaz Sharif this week announced a series of austerity steps, including a four‑day work week for government offices, requiring 50 percent of staff to work from home, cutting fuel allowances for official vehicles by half, grounding up to 60 percent of the government fleet and closing all schools for two weeks to conserve fuel amid the global oil crisis.
The measures were unveiled in response to global oil market volatility triggered by the conflict involving the United States, Israel and Iran, which has disrupted supply routes such as the Strait of Hormuz and pushed crude prices sharply higher, straining Pakistan’s heavily import‑dependent energy sector.
“The meeting stressed the importance of strict and transparent adherence to the austerity measures, promoting fiscal responsibility and prudent use of public resources,” Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar said in a statement.
He was chairing a meeting of the Committee for Monitoring and Implementation of Conservation and Additional Austerity Measures, constituted under the directions of the PM, bringing together federal and provincial officials to review execution of the broad cost‑cutting plan.
Dar emphasized the government’s commitment to enforcing the PM’s austerity steps nationwide. The committee’s review also covered reductions in departmental expenditure, deductions from salaries of senior officials earning over Rs. 300,000 ($1,120), and coordination with provincial administrations to ensure uniform implementation of the plan.
Participants at the meeting reiterated that all ministries and divisions must continue strict monitoring and reporting, with transparent oversight mechanisms, as Pakistan navigates the economic pressures from the prolonged Middle East crisis and its fallout on global energy and trade markets.
