Description
Countries Covered:Â Egypt, Israel, Jordan, Kenya, Morocco, Nigeria, Oman, Saudi Arabia, South Africa, Tunisia, UAE
Pages:Â 93
Publication Date:Â 20/05/2020
Questions Covered in the report:
- What payment methods are preferred by online shoppers in the Middle East and Africa?
- How does the COVID-19 pandemic influence the development of digital payments in this region and worldwide?
- What are the top FinTech startups in the Middle East and Africa?
- How fast are mobile money transactions growing in Kenya?
- Which payment security measures are favored by the UAE’s digital buyers?
Key findings:
Middle East and Africa’s digital payments landscape transforms amid the outbreak
COVID-19 disrupts the dominance of cash payments in the Middle East & Africa
The top payment method used by consumers in the Middle East and Africa, both in-store and online, in 2019 was cash. Cash on delivery accounted for between one-half and two-thirds of E-Commerce transactions in countries such as Egypt, Morocco, and Saudi Arabia, according to the data cited in the yStats.com report. However, due to the coronavirus outbreak in Q1 2020, central banks, E-Commerce merchants, and payment companies across the region are encouraging consumers to use less cash and opt for e-payment means such as cards, digital wallets, and mobile money instead. As a result of these efforts, nearly two in three consumers surveyed in the UAE, Saudi Arabia, and South Africa in April 2020 reported transacting less with cash.
Contactless payments and mobile money on the rise
Among the top payment methods encountering strong growth during the pandemic are contactless cards and mobile wallets. However, due to the low financial account penetration in Africa, consumers on this continent are opting for alternative means to substitute cash, such as mobile money, the yStats.com report reveals. In 2019, Africa accounted for two-thirds of the world’s mobile money payment value. As of early 2020, the growth trend continued, as demonstrated by Kenya, where the number of mobile money accounts is now larger than the country’s total population.
African and Middle Eastern Fintechs attract investmentÂ
FinTech startups in Africa raised hundreds of millions of U.S. dollars during 2019 to help transform the payments landscape in the region and drive financial inclusion. The best-funded startups include Kenya’s Tala and Nigeria’s Interswitch and Opay. Furthermore, one of the leading payment providers in the Middle East, Network International, held an IPO on the London Stock Exchange in 2019 and its revenues rose at a double-digit rate.
