PayPal Insights: E-commerce in the Middle East

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PayPal Insights: E-commerce in the Middle East
September 2013
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PayPal Insights: E-commerce in the Middle East

  1. 1. PayPal Insights e-commerce in the Middle East September 2013 2012-2015 With a focus on:
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  3. 3. PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST Connected commerce in the Middle East Elias Ghanem Managing Director, PayPal Middle East and North Africa Conducting e/m-commerce research in the Middle East Elie Aoun President, Ipsos MediaCT in Middle East, Africa and Pakistan Focus on e-commerce in 3 key countries of the Middle East Francis Barel Business Development Manager, PayPal Middle East and North Africa Innovation in connected commerce: The future of payments Dominique Moayedpour Head of Technology Multi-Channel Retail, PayPal Cash on Delivery - Why it doesn’t help e-commerce Harith Al Anbari Product Manager, PayPal EMEA What challenges are entrepreneurs facing in the Middle East today Wamda; Astrolabs EZStore.me: The e-commerce solution in a box PayPal’s partners in the Middle East The Middle East’s innovative merchants Airlines: the largest online category in the Middle East PayPal Express Checkout Solutions & Log In with PayPal Contents 1 2 6 9 11 13 15 17 18 20 23 25
  4. 4. The Middle East, with one of the world’s fastest growing internet population and e-commerce market, is well-positioned to embrace the new retail environment. Smartphones have become ubiquitous in the Middle East, already accounting for 65% of the mobiles in the top 3 markets (KSA with 63% with a 74% penetration of smartphones, Qatar with 70%, and UAE), and almost 35% across the region. This means that a majority of consumers in the largest markets now walk around with the internet in their pocket, a wealth of information at their fingertips and a new and powerful tool to transact and make payments anytime, anywhere. It is our great pleasure to share the PayPal Insights: e-commerce in the Middle East report. This report explores the latest trends and data on how e-commerce but also m-commerce are radically changing the retail landscape and the way consumers shop and pay in the Middle East. The mobile generation This is the era of the connected consumer who is always with a networked device in hand. A new generation of shoppers is coming on board whose first experience with online commerce will be through mobile devices and social networking. Retailers looking to attract highly connected, digitally savvy consumers will have to offer them a multi-channel experience across online, mobile, social and in-store. In many cases, retailers in the Middle East are at the early stages of their online journey, with a huge opportunity to leapfrog their international counterparts. The Middle East has a storied tradition of trade, commerce, and wide selection of goods to offer consumers. Online and mobile channels can become a new way for these merchants to reach yet an even wider audience. Today, online commerce platforms available to retailers in the Middle East are dynamic, affordable, and in many cases open source, allowing merchants to cost effectively embrace the latest technologies. There is also a huge competitive advantage to be garnered by retailers integrating online and mobile PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST Theglobalretaillandscapeisataninflectionpoint,andoverthelastfewyears,onlinecommerce has smashed down barriers in the Middle East. As 2013 is coming to a close, we are seeing new trendsemergingine-commerce:theMiddleEastisembracingonlineshoppingbothwithlocal e-merchants attracting local buyers but also cross border e-commerce exponentially growing with international e-merchants catering to local consumers or even setting e-shops in the Middle East. Shoppers are using all forms of technology to browse and shop, and particularly on their smartphones.With these trends revolutionizing commerce in the Middle East, conversations around ‘online’and‘offline’retail are quickly losing their relevance. As consumers get used to shopping across a variety of channels and platforms, both locally and globally, the impetus is on retailers to innovate to offer 24 by 7 multi-channel shopping experiences and connect better 2 Elias Ghanem Managing Director, PayPal Middle East and North Africa Connected commerce in the Middle East with consumers.
  5. 5. 3 footprints in addition to their traditional offline presence. We are already seeing many leading e-retailers like MarkaVIP, Souq.com or Namshi offering their customers the choice to shop 24/7 across multiple channels and pay in an easier and safer way to with PayPal. Remaining innovative and maintaining relevance in the new retail environment is the biggest challenge all retailers are facing every day in the Middle East. The Middle East’s online commerce market The past year has seen huge and exciting changes for online commerce in the Middle East. The PayPal Insights: e-commerce in the Middle East report conducted in conjunction with Ipsos shows that the Middle East’s online commerce market grew 29% from $7 billion in 2011 to $9 billion in 2012. Last year, we had predicted that the Middle East’s online commerce market will reach $15 billion by 2015 and this year’s growth reveals that the market is on track to meet our projected growth figures. This growth was driven by a massive jump in the Middle East’s online commerce population, as well as a flood of local retailers coming online and offering local consumers what they could only have found outside of the region before. In 2012, there were over 30 million people shopping online in the Middle East, an increase of 20% from 2011. The healthy growth in online spending in the Middle East is due to a number of factors: new consumers purchasing online for the first time; retailers establishing an online presence or increasing the sophistication of their current online offering; a number of major international retailers marketing directly to consumers in the region and finally, the explosive growth of mobile commerce. 7.0 bn 9.0 bn 11.2 bn 12.8 bn 15.0 bn 2011 2012 2013 2014 2015 Figure 1: Middle East & North Africa online commerce market (USD Bn) Source: 2013 PayPal Insights: e-commerce in the Middle East Figure 2: Online Shoppers (in millions of people) Source: 2013 PayPal Insights: e-commerce in the Middle East 2x growth from 2011 to 2015 2X PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST 2011 2012 95M Internet Users 110 M Internet Users 25M Online Shoppers 30M Online Shoppers
  6. 6. PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST4 Figure 3. Top Online Spending Categories in 2012. Source: 2013 PayPal Insights: e-commerce in the Middle East Finally, it is now easier than ever to get products delivered to the Middle East, with concierge service such as Shop and Ship from Aramex, which enables consumers to shop from any international merchants, even ones that do not deliver in the Middle East . Top online commerce spending categories While travel remains the most popular item for online shoppers, the PayPal Insights: e-commerce in the Middle East report has revealed increases in spending on other items such as computers, consumer electronics, and fashion and jewelry. Domestic online commerce Along with the dramatic growth in spending and the online commerce population, cross-border e-commerce is booming in the MENA region, with more than 70% YoY growth. The growth is driven by the limited choice currently available in the MENA region. While everyday new e-merchants open their e-store in the region, the majority of the shopping remains cross border distributed among the US (35%); Asia (30%) and Europe (25%), the intra MENA region represents already 10% of e-trade. Indeed, local online offering is growing. The PayPal Insights: e-commerce in the Middle East report shows that consumers in the Middle East love to shop on Souq.com or Wysada to discover new trends and incredible products. Top reasons to shop online Convenience, lower prices and variety are the key drivers for domestic online purchases. For domestic retailers, the message is clear – consumers in the Middle Easte are more willing than ever to take out their digital wallet for a wider range of products online as they enjoy the convenience of shopping anytime, anywhere without having to step into a store. Consumers list convenience as their number one reason to shop online in 26% of cases, lower prices in 18% of cases and variety of products and offers in 15% of cases. Annual spending (USD) Travel Consumer electronics Computers Jewellery/watches Event tickets Sports equipment Car parts Food and drink Fashion & accessories Household products $1,521 $250 $248 $222 $201 $192 $176 $133 $108 $107
  7. 7. Key concerns of online shoppers Security is a concern for all online shoppers, whether it comes in the form of payment fraud, non-delivery or counterfeiting. MENA shoppers listed security as their number one concern for shopping online in 40% of cases. As the online commerce environment expands and changes in the Middle East, there is a greater need for a simple and safe payment solution for a multi-channel shopping experience. Enabling more secure online transactions for businesses and consumers, regardless of what channel they go through, is central to PayPal’s proposition. PayPal enables consumers to make safer online payments by not sharing its users’financial details with millions of merchants worldwide that accept PayPal. The“PayPal Buyer Protection”program protects online shoppers if they don’t receive an eligible item (physical goods) they have purchased from websites that accept PayPal, or if they receive an eligible item which is significantly different than described on the website. We also protect our merchants from fraudulent transactions to help them sell with more confidence to domestic and global buyers. 5 Scan To Shop. PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST 5 89 44 16 16 16 15 14 13 12 11 11 9 42 47 24 30 35 25 23 29 29 32 26 22 63 25 13 18 16 10 16 14 14 16 8 12 Home Office / work place Internet cafes Hotels Restaurant, eating places, malls In a shop Educational institution Waiting for transport e.g. airport, train station In transit e.g., on flight, train or bus Open public areas e.g., park Medical facility (doctor, hospital) Public library Tablet Smartphone Desktop/Laptop/Notebook Home Office/Work place Internet Cafes Hotels Restaurant eating places, malls In a shop Educational institution Waiting for transport e.g. airport, train In transit e.g. on flight, train or bus Open public areas e.g, park Medical facility (doctor, hospital) Public library Figure 4: Where are Middle Easterns making their purchases (in %) Source: 2013 PayPal Insights: e-commerce in the Middle East
  8. 8. On behalf of PayPal, Ipsos conducted market research across the Middle East with a specific focus on KSA (Kingdom of Saudi Arabia), Qatar and UAE (United Arab Emirates) to identify the key e-commerce trends in the region. The 2013 PayPal Insights: e-commerce in the Middle East report highlights the rapidly changing attitudes and habits of the Middle Eastern consumers towards e-commerce, popular mobile shopping categories, and opportunities for Middle Eastern retailers. Research highlights The growing number of smartphone and Tablet devices in use is changing the purchasing habits of residents in the Middle East who are driven by a desire for convenience, the ease of getting information, and the search for inexpensive products. Due to the increased use of mobile devices, consumers are offered a greater number of channels through which they can shop for and purchase products. As a result there has been an increase in an individual’s total online purchase expenditure as well as an increase in the range of products they purchase. From airline tickets to computers, from jewelry to fashion, shoppers are finding it easier to make online purchases. For that, efforts are being put to facilitate online payments and secure them as well as eliminate barriers in the transaction process. Methodology The PayPal Insights: e-commerce in the Middle East report aims to develop a greater understanding of the Middle East’s online shoppers’behavior and payment methods. In the UAE and KSA, research was conducted through online interviews. Representative samples of 511 respondents from the UAE and 800 from KSA were taken from people who use internet-enabled devices (e.g. computer, smartphone, Tablet). Of those surveyed, mobile shoppers were comprised of 26% smartphone shoppers in both the UAE and KSA. Tablet shoppers were 16% in the UAE and 13% in KSA. In Qatar, the same research was conducted through computer aided telephone interviews (CATI). The sample consisted of 500 respondents recruited from a nationally representative online sample. Of those surveyed, mobile purchasing behavior consisted of 4% smartphone shoppers and 6% Tablet users. PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST6 Conducting e/m-commerce research in the Middle East Elie Aoun President Ipsos MediaCT in Middle East, Africa and Pakistan
  9. 9. 0.5 bn 0.9 bn 1.3 bn 1.8 bn 3.0 bn 2011 2012 2013 2014 2015 PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST Overview e-commerce in the Middle East is expected to continue to show robust growth in the region, supported by the acceleration of m-commerce. Mobile transactions already represents 10% of e-commerce (similar to the rest of the world), our research shows that with a 6 times growth in the next 4 years, m-commerce will represent close to 20% in the Middle East in 2015. This means that while purchasing via desktop/laptop remains dominant, there is a mobile mind-shift occurring with the rise of tablet and smartphone penetration. In KSA, e-commerce is projected to increase from 1.00Bn USD (3.8Bn SAR) in 2012 to 2.70Bn USD (9.9Bn SAR) in 2015. M-commerce in KSA is projected to increase from just under 0.10Bn USD (0.4Bn SAR) to over 0.70Bn USD (2.6Bn SAR) in the same time period, driven by a rise in sales through tablets. Smartphone users constituted 26% of KSA mobile shoppers while Tablet users constituted 13%. 66% of KSA online users purchased online in 2012. In Qatar, e-commerce is forecast to increase from 0.70Bn USD (2.6Bn QAR) in 2012 to 1.25Bn USD (4.6Bn QAR) in 2015. M-commerce is forecast to increase from a little bit less than 0.1Bn USD (0.4Bn QAR) to over 0.45Bn USD (1.7Bn QAR) in the same time period, driven by a rise in sales through smartphones. Smartphone users constituted 4% of mobile purchase behavior while Tablet users constituted 6%. 28% of Qatari online users purchased online in 2012. In UAE, e-commerce currently stands at 2.90Bn USD (10.7BnAED), and is expected to grow to 5.10Bn (USD 18.7Bn AED) in 2015. From its current base supported by high smartphone penetration, m-commerce is predicted to grow to nearly 1.50Bn USD (5.5BnAED) by 2015 and will be driven up by a rise in Tablet penetration and purchases. Figure 1: Middle East & North Africa m-commerce market (USD Bn) Source: 2013 PayPal Insights: e-commerce in the Middle East 7 Figure 2: Top 3 Online commerce markets in the Middle East & North Africa (in Bn USD) Source: 2013 PayPal Insights: e-commerce in the Middle East 2.9 5.1 1.0 2.7 0.7 1.25 20152012 Kingdom of Saudi Arabia Qatar United Arab Emirates 6X 6x growth from 2011 to 2015
  10. 10. How are they buying? Purchases made on a computer remain the most dominant throughout the Middle East, especially to buy computers or airline tickets. However, m-commerce is expected to grow in almost all categories within the three countries. 56% of total online shoppers in KSA make their online purchases from home or at work, while 55% do so in UAE and 90% in Qatar. In KSA, smartphones are used to make purchases most frequently at home, in the office, and in transit while tablets are also used primarily at home. In Qatar, growth in mobile sales will be driven more by smartphones than Tablet transactions. There is a high penetration of mobile devices in Qatar with over half of consumers already owning a smartphone (63% of online users own a smartphone while only 14% own a Tablet). PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST8 Annual spending (USD) $655 $312 $293 $249 $209 $193 $149 Figure 3: Top Merchants in the Middle East & North Africa by average annual spending per online shopper Source: 2013 PayPal Insights: e-commerce in the Middle East What do consumers want? Retailers looking to grow their m-commerce footprint should focus on ensuring user-friendly experiences, taking into account variables such as screen size, and build on the convenience afforded by mobile devices. Incentives such as coupons could also help drive consumer interest in mobile purchasing. Throughout the Middle East, smartphones are considered highly convenient but consumers say that using the device for purchasing leaves room for improvement, primarily due to the small size of the screen. Therefore, smartphones are often used by consumers for immediate, on-the-go needs such as comparing prices in a store or to find store locations. Consumers find that using tablets somewhat is more enjoyable for shopping online than smartphones. However, the main barrier to online shopping for Tablet users is the feeling of a lack of security during the transactions. Lack of user-friendliness is a primary barrier towards even greater adoption of mobile purchasing. 48% of KSA consumers reported they would be very likely to make online purchases in the future if merchant websites became more mobile-optimized. Coupons could also be a way to help drive mobile shopping. One out of three consumers in Qatar claims they would be much more likely to buy on a mobile site with a coupon incentive. Similar behavior is recorded in the UAE where almost a quarter of the online users feel they would be much more likely to make purchases using their mobile if they had a coupon, while over one third of KSA online users have made the same claim.
  11. 11. PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST Convenience, trust and choice e-commerce in the Middle East is booming thanks to several drivers. Consumers are telling us that: the main reason to shop online is convenience; the biggest challenge is trust; and the biggest opportunity is choice. While it is understandable that some people simply prefer to shop in-store, the highest ranking barriers to online shopping in the region include security of online payment and wanting to get items immediately. This highlights the importance of ensuring that consumers understand how they are protected when shopping online. The main reasons why consumers spend more online include ease and convenience in ordering and receiving their order, discounts and promotions, cheaper prices online and greater variety of items available. Similarly, consumers would be less likely to abandon an online purchase if there had been free shipping and multiple payment options. In KSA, some online shoppers spend less on online shopping due to unsecure methods, and a small minority of online shoppers spend less because shipping is expensive, or because they prefer to see items before shopping. While online shoppers in KSA spend more on online shopping, a lot of them buy online due to the easiness/ convenience in ordering and receiving the order, and a minority spend more because the goods offered online are much better than those available in store. In Qatar, some online shoppers spend less on online shopping because they did not get the items that was shown on the website, and a small minority spend less to save time, are not satisfied, or because they plan to split their expenses between online and offline. While respondents in Qatar spend more 41% due to cheaper/ lower prices, and 2% spend more because of security. In UAE, some online shoppers spend less on online shopping due to their preference to see the items closely before buying, and a small minority spend less because they do not trust the displayed merchandise or because the product is expensive. While most online shoppers in UAE spend more on online shopping because of the easiness/ convenience in ordering and receiving the order and some online shoppers spend more because of the improvement/increase in the number of websites that offer goods online. e-commerce in the Kingdom of Saudi Arabia Trends in e-commerce: In KSA there has been 36% to 55% growth in mobile commerce penetration across all segments of online shoppers, with close to four in every ten consumers showing the potential to make purchases via their mobile devices. Furthermore, higher earning professionals show the greatest potential to spend more, particularly Arab expats, those in their mid-20s to early 30s and those living in Riyadh. What are Saudis buying: In KSA, travel has the highest online share at 59% and the highest average annual online spend per person at SAR 1,793 (USD 478). The purchase of computers accounts for the second highest average annual online spend, at SAR 646 (USD 172). Similarly in KSA, Souq.com is a top visited retailer with a high average expenditure of SAR 1,882 (USD 501). KSA online users claim that online share will increase for most categories, excluding travel in 2013. 46% of online shoppers have bought from overseas websites, doing so primarily to gain access to goods they cannot find in KSA. How do Saudis shop: In the Middle East, Cash on Delivery represents more than 80% of online purchases, followed by cards at 15% and PayPal at 5%. PayPal is expected to grow at 15% by 2015. In KSA, for payments on domestic websites, Cash on delivery (COD) dominates with almost 70% of payments, followed by credit cards with 15% and auto-debit (Sadad) at 10%; PayPal accounts for 5% of the online payments. Credit cards and PayPal are the preferred forms of payment for international sites, accounting for 44% made with cards and 33% with PayPal. COD is the main payment method for smartphone users (at 31%) and Tablet users (at 36%). In KSA PayPal is the chosen method of payment for 13% of online purchases made from smartphones and 17% of purchases made from tablets. 9 Francis Barel Business Development Manager, PayPal Middle East and Africa Focus on e-commerce in 3 key countries of the Middle East
  12. 12. e-commerce in Qatar Trends in e-commerce: In Qatar, growth is predominantly driven by an increased penetration of online shopping across categories, especially travel. About a quarter (28%) of consumers shopped online in the past 12 months. Further, online share is usually lower for the higher spending categories, though travel is an exception with a 34% online share and an average annual spend of over QAR 2,457 (USD 674). Online share is projected to increase from 34% to 76% in Qatar by 2015. Travel and sport equipment currently have the highest proportion of online spend at 20% though travel tickets have the highest average online spend at QAR 746. The top online retail site visited was Qatar Airways, followed by eBay, then Amazon. 37% of online shoppers have made a purchase at Qatar Airways which has the highest average spend per purchase at QAR 2,460 USD (USD 675). What are the Qataris buying: In Qatar most online spending is done on a desktop computer averaging 86.6% of total purchase, while smartphones and tablets only account for 10.2% and 3.2% of online spend shares respectively. Qatari shoppers tend to make their purchases at home or at work. Desktop and smartphone owners are more likely to be expats predominantly in their mid- 20s to early 30s, living in Doha whereas Tablet users are more likely to be Arabs living in a larger household with children at home. High income groups show the highest potential for spending, especially expats, people in their mid-20s to early 30s and those living in Doha or Al Rayyan region. How do Qataris shop: In Qatar, 7% of online shoppers use PayPal to complete their transactions. Credit cards are used in 18% of the cases, and COD is used for the remainder, 75% of the time. PayPal users tend to be male, 25-34 years old, expats, and live in Doha City. These PayPal users mainly make purchases from Qatar Airways (35%), Air India (27%), and eBay (24%). People living in large households with children at home are more likely to be PayPal users as well as make cross- border purchases. Over half of online consumers have made a purchase on an overseas website. e-commerce in the Unit- ed Arab Emirates Trends in e-commerce: In the UAE higher income earners, both professional and management, show the greatest potential to spend more, especially expats (Asian, Western, etc.), those in their mid-20s to early 30s and those living in Dubai. What are the Emiratis buying: In the UAE, travel has the highest online share at 67% and the highest average annual online spend at AED 2,024 (USD 551). The purchase of computers accounts for the second highest average annual online spend at 500 AED (USD 136). In the UAE, 52% of the respondents shop at Souq. com. Among local stores shopped at, Souq.com marked the second highest average expenditure of AED 987 (USD 268) per purchase. How do Emiratis shop: PayPal follows card as the fourth preferred method of payment for purchases made on domestic sites at 6%. For purchases made on international sites, PayPal is the third most used method of payment at 30%. In the UAE, credit cards are the second payment method used for shopping on computers after COD, which is also preferred by online shoppers using smartphones and tablets. After COD and credit cards, PayPal is the third predominating method of payment for smartphone users at 27%, it also constitutes 20% of the payment methods chosen by Tablet users. Payment methods for e-commerce in the Middle East 10 PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST 5% 15% 80% 60% 15% 25% 20152012 Cash on Delivery Payment Cards Paypal Figure 5: Payment methods for e-commerce in the Middle East Source: 2013 PayPal Insights: e-commerce in the Middle East
  13. 13. The lines between the“offline”and the“online”worlds are blurring. Click and collect, click and delivery, ROPO (Research Online Purchase Offline), web to store, showrooming or digital in store, all these terms are describing new shopping experiences where the consumer navigates among various shopping channels and touchpoints thanks to multiple connected devices (laptop, tablet and smartphone). Multichannel is becoming Crosschannel and Omnichannel: A retailer or merchant needs to offer its products on all channels, all the time, with a seamless and homogenous experience. The battle between commerce and e-commerce is over, it is now the age of the connected commerce. PayPal is leading the way thanks to its vision of a Digital Wallet, as well as four major initiatives in its international markets, including two exciting alternatives to Cash On Delivery (COD). PayPal’s vision for the Digital Wallet PayPal is redefining money and pioneering a revolution in the way we pay. We’re working at creating a better shopping experience from start to finish, no matter what’s being bought, when and where it’s being sold, or what device is used to pay for it – PC, smartphone, tablet or games console, for example. PayPal’s vision for the future of money is broader than just payment checkout and focuses on helping to connect retailers and shoppers throughout every phase of the purchase process. Nothing symbolizes this more than PayPal’s vision of a digital wallet. We are re-designing our digital wallet for consumers to make money work better in today’s rapidly changing multi- channel shopping environment. It is both digital and mobile – and it allows consumers to do things with their money that have never been possible before. A glimpse of what PayPal’s new digital wallet could allow consumers to do in the future: Separate the purchase from the payment: Buy something in a store, take it home and decide later how you want to pay for it. PayPal’s wallet would in the future offer you a grace period during which you can switch funding sources, decide to pay over a period of time in installments or use different sources of value to pay by combining things like gift cards, airline miles or loyalty points. Personal lists: Search for items, compare prices and create lists of things you want to buy. Find the best deals: The new PayPal digital wallet will find deals and discounts for items on your personal lists once you are in a store. You will never miss a discount again. Help create rules: Create specific“set asides”like set aside travel funds or funds for your children’s education or set rules by purchase amount. For example, you could designate a bank account for all grocery store purchases and a specific credit card for entertainment and travel directly from PayPal. All you would need to do is pay via PayPal, and the platform would automatically recognize whether a specific payment should be drawn from a credit card or a bank account. The new digital wallet will not have a finite set of features, and will evolve with the pace of innovation, allowing us to incorporate new functionality as consumer demand shifts. It will usher in a new era of commerce for consumers and retailers, where we can maximize the power of digital money. Innovation in connected commerce : The future of payments $ $$$ $$ LOYALTY SELF SCANNING & SELF CHECKOUT INSTORE PRICE COMPARISON SHOPPING LISTS STORE LOCATION PAYMENT MOBILE COMMERCE PROMOTIONS & COUPONS Mobile shopping is becoming increasingly multi-channel PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST 11 Head ofTechnology Multi-Channel Retail, PayPal Dominique Moayedpour
  14. 14. PayPal Check-in Check-in with PayPal allows consumers to pay in a store without ever getting their their wallets out, whether to take a card or cash out. It’s as simple as checking into a popular social media app: once a consumer confirms he has entered a store, any items the consumer wishes to purchase will be deducted from his PayPal account. The consumer will then be able to enjoy the same usual benefits he has with purchasing online with PayPal, with the convenience of trying the items and deciding which one the consumer wants to buy. How PayPal solutions could offer alternatives to COD around the world PayPal’s Pay After Delivery PayPal and Mondo Convenienza, a leading furniture player in Italy, have designed a product that allows the consumer to pay for a small deposit online and for the final balance only once the goods are delivered and installed at home, via a QR code on the invoice. This is even more convenient for Mondo Convenienza’s customers as they are ordering expensive and complex furniture, and it is more reassuring for them to only pay once the furniture are installed at their home PayPal is the best partner to progressively merge the real and virtual worlds, and Mondo Convenienza has been expanding and decreasing its orders paid via COD thanks to PayPal’s Pay After Delivery PayPal Here PayPal Here is a pocket-size payment device that connects via Bluetooth to a smartphone and enables small retailers, couriers and on-site service providers to receive card payments on-the-go during a face-to-face interaction with the consumer. This device allows businesses to never turn away sales because the customer has no cash, and it allows online merchants to equip their couriers with the device to receive payments via card at delivery. In addition, by limiting cash at merchants, the cost of cash decreases, whether it’s the cost of handling and depositing funds at the bank or managing the treasury while waiting for the cash to come into the bank account. PayPal has not made any announcements at present about bringing PayPal Here to other markets, but PayPal is always looking at the most appropriate consumer experiences to bring to each market. 12 PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST
  15. 15. PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST 13 COD has obvious and hidden costs for all participants of the ecosystem: • It is expensive for merchants, as it limits their growth and visibility; • It is costly for the courier and logistics services involved in the delivery creating numerous inefficiencies and challenges; • It limits the growth of the ecosystem and the entrance of players, which could potentially increase the variety of offerings; • It is expensive for consumers as it increases the cost of delivery and the inconvenience of having to be present for the delivery. COD is a true plague for merchants in the region. It is hampering their growth and increasing the cost of doing business in the Middle East. The many costs of COD for merchants are: • Extremely high returns: Up to 40% of the goods are returned today in the Middle East, with higher rates than in countries where COD is not as dominant, sometimes as high as twice as many returns (returns can be“no- shows”or consumer changing their mind); Our research has shown that in 2012, 80% of all online purchases in the Middle East were made via Cash on Delivery (COD). While COD is present across all emerging markets, it has created some particularly high costs for the whole Middle East e-commerce ecosystem. • Cumbersome treasury funding: Merchants have to wait up to 4 weeks before they receive the funds; • Expensive cash management: Handling cost, thefts, security, etc.; • High accounting & transfer fees. In addition, COD also has significant costs for courier services: • Costly resources: Logistics companies have to have dedicated staff and resources to handle COD; • Cumbersome management: Courier services have to manage the customer relationship directly to coordinate directly, which is not their core business. Furthermore, COD is limiting the growth of the ecosystem: • Low transparency: Cash transactions are not reported as thoroughly as electronic transactions and therefore limits the transparency for governments and regulators; • High cost of entry: New e-commerce merchants have to think twice before starting their business in the Middle East as they have to anticipate all the costs related to COD; • Higher point of profitability: New e-commerce merchants in the Middle East reach profitability much later because of the heavy cost of COD. Finally, contrary to popular belief, COD also has a high cost for consumers: • Consumers pay more for COD as merchants charge the handling & logistics hassle of COD, sometimes up to 5 USD; • Consumers have to be present at delivery and need to coordinate over the phone with the courier, sometimes through 9 or 10 calls; • Consumers have to have cash on hand for costly items, greatly diminishing the whole comfort of shopping from home if cash needs to be obtained from a bank or ATM. Harith Al Anbari Product Manager, PayPal EMEA Cash on delivery Why It does not help e-commerce
  16. 16. Despite these costs, consumers still prefer COD over other payment methods, because they do not have to enter credit card information: • It gives them a sense of security; • It is very simple to use. As the PayPal Insights report has shown, security and convenience are the most important concerns for consumers. However, COD comes with such a high cost in exchange for security and ease of use that it is definitely not a reasonable nor sustainable solution for e-commerce in the Middle East. The e-commerce market will truly grow and benefit merchants when electronic payments are fully embraced by consumers. As an example, Italy has seen a decrease in the use of COD from 75% of online transactions in 1999 to less than 5% in 2013, replaced by electronic transactions that allowed for better visibility, trust and planning on both the merchants’and consumers’side, contributing to an incredible growth of the market. PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST14 PayPal and some top merchants of the Middle East like MarkaVIP, Namshi and Aramex are committed to tackling Cash on Delivery in the Middle East. PayPal is investing significant efforts through a customer-driven Innovation- methodology to determine the root causes of customers’preference for COD. After determining these root causes, potential solutions and product concepts will be tested in a real environment, aiming for concrete results within the next twelve months. Since consumers are looking for security and convenience, and those two elements are part of PayPal’s DNA, PayPal is committed to offer the best alternative to COD to consumers and merchants in the Middle East.
  17. 17. What challenges are enterpreneurs facing in the Middle East today e-commerce is definitively one of the fastest growing and most promising online sectors in the Middle East and North Africa today. While the offline retail market, valued at $425 billion, still far exceeds online spend (valued at $9 billion, as mentioned on page 3), online shopping will increase as basic infrastructure enables better logistics, more payment options and general consumer trust. Challenges in the sector abound, beginning with logistics. In a complex, fragmented market, most e-commerce companies have opted to handle their own last mile delivery and develop in-house logistics solutions, to minimize their delivery times. Another challenge is warehousing: stocking items can also be difficult, when reliable and affordable partners are hard to find, although solutions like Aramex continue to provide for most e-commerce startups. Local warehousing and in-house logistics help companies reduce their rates of undelivered packages and returns, which can be costly due to high import duties in several markets and a regional preference for payment via cash-on- delivery (COD), which can reach 70% of purchases in markets such as Saudi Arabia, Jordan, and Egypt. To mitigate losses, many companies have improved confirmation, activated an option for credit or debit card payment on delivery, and offered“doorstop trials,”in which a customer tries on various sizes while the delivery man waits outside. Companies expect COD order rates to fall once consumers become more trusting of online payment gateways; however, finding a payment gateway that is both secure and affordable is also a challenge in many markets. The hurdle that underpins the rest, however, is simply a widespread lack of consumer trust in online shopping. This trend is rapidly changing, as globally trusted payment gateways like PayPal open in new markets, and companies reduce delivery times to guarantee good customer experiences. Wamda is a platform designed to empower entrepreneurs in the MENA region, with Wamda.com designed to spotlight the stories of small businesses throughout the region, Wamda Capital Fund aimed at investing in early stage startups in the MENA region, and programs and products geared towards helping startups set up, run, and grow a company. Nina Curley Editor in Chief for Wamda PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST 15
  18. 18. Muhammed Mekki, Founding Partner, AstroLabs After running our AstroLabs Scaling Online Startups program across several countries in MENA, we have identified the following top three challenges facing the founders of the highest potential startups in the Middle East today: 1) Talent: Finding top quality managerial and technical talent willing to jump from stable jobs into risky entrepreneurial ventures is extremely difficult in this region due to a lack of familiarity with the industry and a preference for established brands. 2) Funding: Although the region is a global source of capital, sophisticated VC investors funding local startups are in limited supply and will likely continue to be until success stories proving the investment thesis emerge. 3) Support: MENA startup growth is slowed because founders often tackle core business challenges, such as payments and digital marketing, without the support of peers or advisors who could share past lessons and propose tested solutions to their problems. Despite the challenges facing entrepreneurs in the region, startups are sprouting everywhere from Riyadh to Casablanca. As the profiles of these companies rise, success stories are bound to emerge. When they do, top talent and smart capital will flock to the industry. Supporting the development of these success stories now is critical. AstroLabs is an entrepreneurship development platform for the Arab world. Its flagship program, Scaling Online Startups, brings together founders of MENA’s best startups for intensive workshops on accelerating company growth. Partnered with global leaders including PayPal, Google, Microsoft, and Aramex, AstroLabs aims to create lasting bonds among entrepreneurs and deliver impactful, actionable content for startups in cities across the region. PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST16
  19. 19. The world’s leaders in e-commerce have partnered to offer entrepreneurs and SMBs the quickest, easiest and cheapest solution to go online. There are more than 15,000 merchants in the UAE only looking to go online and start transacting with the world. EZStore is the perfect one-stop-solution to bring them online. Any company with an existing store can now go to www.EZStore.me and create within a few minutes their own e-commerce website, with payments, logistics and marketing solutions already integrated in the EZStore solution. Aramex provides logistics solutions and ensure that the goods are delivered safely and on time to their destination, at great rates. Google provides vouchers for AdWords, and will provide the merchants with videos and tutorials to learn how to best use AdWords and the fantastic Google tools available to merchants to help them bring traffic to their website. PayPal provides the payments solutions, enabling the new e-commerce website to receive payments from any of the 132 million PayPal users in the world, as well as any new PayPal user that signs up with PayPal on the website. And ShopGo packages all these different offers into one single, easy-to-use solution. EZStore.me is the first“ec- commerce in a box”in the Middle East and North Africa looking to enable and boost the e-commerce in the region, led by the world’s leaders of each field. Here are 10 tips on how to start a successful online business: 1. Do your research: Analyze market needs. See what your competitors are offering and what their strategies are. 2. Think about the logistics: How are you going to process orders, manage inventory and returns? 3. Optimize the customer journey: Simplify your buying process. The longer it takes, the more likely you’ll discourage your customers from completing sales. 4. Keep your pricing clear: Show all costs upfront and don’t add additional charges after your customers have confirmed their basket. 5. Offer several ways to pay: Display the logos of the payment methods you offer on key pages of your site 6. Don’t forget about sales from mobiles: Sales from mobile devices are increasing, so make sure to adapt your website and checkout process for your mobile customers. 7. Ensure your website is searchable: Work on the SEO (Search Engine Optimization) of your site and plan a marketing budget. That is why EZStore. me offers Google integration so that you can optimize your marketing budget. 8. Establish trust with your customers: Excellent customer service is essential and will be rewarded. Try to inform them about the status of their order and what stock is available. 9. Nurture customer relationships: Send newsletters and consider rewarding loyalty. Personalize your relationship with customers by tracking the results of your marketing communications. 10. Choose the best solution for creating your website: EZStore.me is the simplest, quickest and cheapest solution to go online. EZstore.me: The “e-commerce solution in a box” PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST 17
  20. 20. 18 PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST PayPal and QNB have signed a strategic partnership making QNB the first bank in the Middle East to offer the four following functionalities: • Account Creation: All QNB customers can now create a Verified PayPal Account from their secure QNB e-banking website • Debit cards enablement: A challenge in the Middle East is that not all bank customers have a credit card. But every QNB customer has a debit card. QNB’s teams have now enabled QNB customers that do not have a credit card but only a debit card to transact online via the creation and use of a PayPal Account • Top Up: All QNB customers can now top-up their PayPal accounts from their secure QNB e-banking website • Send Money: All QNB customers can now send money to any PayPal account in the world, from their secure QNB e-banking website Qatar National Bank is the largest bank in Qatar, by assets and customer base. QNB Group has steadily grown to be the largest bank in the Middle East and North Africa Region and is by far the leading financial institution in the country with a market share exceeding 45% of banking sector assets. Bloomberg Markets, the leading provider of Business, Financial and Economic news has ranked QNB as the World’s Strongest Bank in its 2012 ranking. The 78 banks in Bloomberg’s ranking list included some of the largest and most renowned financial institutions in the world, with QNB being the only bank from the MENA Region. PayPal’s partners in the Middle East
  21. 21. PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST 19 Aramex is a leading global provider of comprehensive logistics and transportation solutions. Established in 1982 as an express operator, the company rapidly evolved into a global brand recognized for its customized services and innovative multi-product offering. In January 1997, Aramex became the first Arab-based international company to trade its shares on the NASDAQ stock exchange. Today, Aramex employs more than 13,900 people in over 354 locations across 60 countries, and leads a strong alliance network providing global presence, and bringing together 40 independent express companies from around the world. Aramex Shop and Ship (www. shopandship.com) is the leading cross border online delivery brand in the Middle East and North Africa. Shop and Ship (SnS) is 100% focused on handling and delivering international online purchases. Aramex introduced Shop and Ship in 2000 with the aim of making online shopping simpler for people across all regions. As a“Shop and Shipper”, individuals get 6 personalized lifetime accounts in New York, London, Shanghai, Dubai, Mumbai and Istanbul for only a one- time membership fee of USD 45 which can be paid online by using a credit card or PayPal. Shoppers now have the chance to explore the amazing avenue of online shopping without having to bare high international shipping costs or face the disappointment of stores not shipping internationally. A solution introduced to help customers order their favorite items with reasonable shipping costs that can be tracked at any time using the online tracking feature on shopandship.com or the SNS Apps. From quaint specialty stores to the high streets of the fashion capitals of the world, every item is within your reach with just a click. Aramex and PayPal work together to offer consumers the ability to pay their Aramex shipping fees with PayPal, as well as register for the life-time Shop and Ship Membership with PayPal. PayPal’s integration with Shop and Ship demonstrates the platform’s commitment to the Middle East and North Africa, as Shop and Ship is the best solution to bring items to the MENA region that were purchased with PayPal on global websites. Shipping and payments are the two most important elements to e-commerce in addition to choice. If the customers find trusted solution for both, then they will be able to help local companies develop their sales and ship to an even wider audience. ShopGo is an active player in the“PayPal channel partner program”and offers PayPal as part of their menu of solutions to their customers either in the set up phase or for already existing e-stores looking to expand their payment solutions to better align with their local and international customers’ needs. ShopGo is an online e-commerce solution. Through its efficient & user-friendly platform, it enables beginners and experts alike to build, manage and monitor a simple and interactive store on their own. ShopGo focuses on the MENA region, providing multiple localized solutions and tools to ensure that its customers have all they need to run a successful online business. ShopGo offers all the features a merchant needs to go online, packaged in an efficient, user-friendly interface: MENA Localized Payment and Shipping Solutions; Full Online Hosting; Easy-to-use and User-friendly Admin Panel.
  22. 22. 20 PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST Namshi is one of the most popular destinations in the Middle East for fashion and footwear. Namshi brings an extensive range of local and international brands to its customers and ensures their customers’satisfaction and comfort while shopping. The company promises the latest trends and brands as well as high service levels through its customer engagement team. Through their fast (next-day delivery in the UAE) and free shipping and 14-day return or exchange policy, Namshi believes in making the customer’s shopping experience happy and convenient. Namshi recently snatched up two prestigious awards - The “Retail leadership Award”at the Asian Retail leadership Awards Ceremony and“Retailer of the Year”at the InRetail summit. Namshi and PayPal have had a long-standing relationship, with PayPal enabling secure and easy payments on Namshi’s website as well as mobile website since Namshi’s first days. PayPal offers secure and easy payments, and Namshi delivers choice and service: a great combination to help e-commerce grow in the Middle East. MarkaVIP was established as an exclusive shopping community where members can discover private sale campaigns that offer unique brands and styles for just a brief window of time. The company focuses on the most sought-after collections from the premiere brands and boutiques in the world. MarkaVIP was founded by experienced professionals at leading firms in the fashion and lifestyle products industry. MarkaVIP has distinguished itself by offering an amazing collection of new brands, latest fashions and privileged prices. MarkaVIP has also invested in its own logistics and last-mile delivery service to extend the quest for quality from the brand to its customers. MarkaVIP and PayPal have partnered to make MarkaVIP the first pure player in the MENA region to offer its customers a direct billing agreement by PayPal. MarkaVIP can now offer its customers convenience and peace of mind of online payment in one easy click. MarkaVIP and PayPal have also partnered on innovative marketing campaigns to offer their customers great promotions on incredible products and exclusive items. Such initiatives are having a significant impact on enhancing trust among consumers and increasing the adoption of online payment. The Middle East’s innovative merchants
  23. 23. PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST 21 Souq.com is the largest e-commerce site in the Arab world, featuring more than 200,000 products across categories such as consumer electronics, fashion, household goods, watches or perfumes. Today Souq.com attracts over 17 million visits per month and is fast growing as more consumers shop online in the Arab world. Established in 2005, Souq.com pioneered online shopping in the region launching in the UAE in 2006 and quickly moving into other key markets such as Kingdom of KSA, Kuwait and Egypt. Souq.com’s technical and development team is based in Jordan. Built on the basic fundamentals of providing customers with choice, value and security, Souq.com is often tagged as the“Amazon of the Middle East”, Souq.com operates both as a retail site and as a marketplace for third party sellers. As part of Souq.com’s overall commitment to offering a convenient and safe online shopping experience, the company has been investing heavily in fulfillment centers in each of its markets to further enhance the shopping experience as well as huge expansions have been made in the customer service force to cater the growing number of customers. Souq.com and PayPal have partnered to offer a seamless payment experience for all MENA consumers. As Souq.com offers many small sellers the opportunity to sell on Souq.com, buyers can benefit from PayPal’s Buyer Protection. PayPal and Souq.com will soon partner for Souq.com’s development’s in KSA as well as other countries in the MENA where PayPal and Souq.com can offer convenience, security, and a great choice of products. JadoPado is a unique instant gratification e-commerce experience for the Middle East. The firm retails a wide range of consumer electronics and related products while only selling what it holds in stock. JadoPado uses its own fleet of delivery vans for deliveries within the UAE and partners with FedEx for International Deliveries. JadoPado has tried to build a better experience by creating a colorful and easy to use site, an unmatched same day delivery offering with some great customer support thrown in. JadoPado engages customers over multiple channels including email, social media, live chat and real human interaction. JadoPado and PayPal share the same endless search for customer satisfaction and unrivaled service: JadoPado offers“JadoPado Shield”, which provides free accidental protection on products sold by JadoPado, the first of its kind in the region, while PayPal offers Buyer Protection, against products not delivered or not as described. JadoPado conducts research on e-commerce trends, which complements PayPal’s constant search for insights in the region, as this report that you hold in your hands shows.
  24. 24. PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST22 Careem makes ground transportation reliable, personal, safe and convenient. Started by former management consultants, Careem is a value-added aggregator of chauffeur-driven cars in the Middle East. Careem’s customers can order a ride online or through the Careem mobile app, track their rides in real-time, pay with PayPal or their credit cards, and access receipts online. The service is currently live in Dubai, Abu Dhabi, Doha and Riyadh, and rapidly expanding to other major cities of the Middle East. Careem has also signed up large companies onto the platform, through which all of a company’s staff or their helpers can book rides seamlessly on the web and through Careem’s mobile app. PayPal is all about mobile optimization, and about offering its customers a fluid, easy, secure and homogenous experience whatever the device, whatever the country. Careem and PayPal offer an easy and secure experience for check-out or recurring billing, whether you are in Dubai, Doha, or Riyadh. Mobily, the brand name of Etihad Etisalat, was the Kingdom’s monopoly-breaking mobile operator back in 2004. It is listed in Tadawul Stock Exchange as it equates to 40%+ market share of the current mobile subscriptions in the Kingdom. It has set new world records with subscribers and daily data transmission. Mobily provides a wide range of solutions for both individuals and the business sector. The move followed Mobily’s aggressive thrusts into fixed-mobile convergence, and into the mobile broadband provision market, when the leading Saudi 3G mobile operator became the first operator in MENA to commercially launch the 4G (TD-LTE) services. Moreover, Mobily was one of the first few companies in the world to offer an unlimited data communication packages, based on high-speed downlink packet access (HSDPA) technology offered to subscribers at competitive rates and in a very creative way. In 2012, Mobily’s social media initiative won the ORACLE Innovation Award and in 2011 Mobily won the Gold Award for Saudization for two consecutive years. As PayPal has a“Mobile First”approach, enabling a full range of mobile services, Mobile Network Operators (MNOs) are the perfect partners. Mobily is the first MNO in the Middle East to partner with PayPal. This is an historic partnership: Mobily consumers are now able to pay safely and conveniently for different mobile services. Mobily consumers can now use PayPal to pay for their post-paid or pre-paid bills. Furthermore, Mobily consumers will be able to top-up their Mobily phone minutes with PayPal, as well as buy content on-demand from Mobily website. For as little as $11.99 per month, icflix subscribers can watch unlimited Jazwood (Arabic), Bollywood and Hollywood movies and TV series, all in a single package. Icflix is a new online streaming video service that allows, through a monthly subscription, to watch the latest Hollywood, Bollywood and Arabic titles including movies and TV shows as well as children’s programming, via internet- connected smart TVs, PCs, tablets and smartphones. The icflix app is available for free download on a growing number of iOS and Android mobile devices. Given that the Middle East region consumes more online video content than any other in the world, icflix was created to satisfy that demand and to give people the ultimate experience in online entertainment. icflix and PayPal offer icflix customers a seamless experience on internet- connected devices: from a tablet, a smartphone, a computer or a smart TV, icflix customers can browse the icflix library, sign-up for a 7 day free trial and pay using PayPal: the experience is always optimized. This will allow a worldwide PayPal audience, wherever they are located, to finally legally stream exclusive Jazwood and Bollywood content. For PayPal users within the Middle East & North Africa, they will have access to Hollywood content. icflix has the potential to appeal to the same global audience as PayPal. Indeed, the Middle East has a wealth of talent, creativity and truly original content that it can offer the rest of the world. PayPal helps local companies promote their products, services and content to the rest of the world by reaching a global audience.
  25. 25. PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST 23 In a relatively short time, Qatar Airways has grown to over 120 destinations worldwide, offering unmatched levels of service excellence that have helped the award-winning carrier to become best in the world. Voted Airline of the Year 2011 and in 2012, as well as Best Business Class in the World 2013, the airline has also been awarded the independent researcher’s 5-Star rating easily demonstrating that Qatar Airways has won the confidence of the travelling public. In this highly competitive environment, Qatar Airways has achieved much with a phenomenal route expansion averaging 30% growth year to year and flying one of the most modern fleet of almost 120 aircraft in the skies today. Qatar Airways’global network currently spans key business and leisure destinations across Europe, Middle East, Africa, Asia Pacific, North America and South America, with scheduled flights operating to and from their hub in Doha, capital of the State of Qatar. Airlines represent the most popular category for online purchases in the Middle East. PayPal is already embraced by the world’s leading airlines, across all continents. Many airlines offer PayPal to their customers, making paying for tickets easier and safer. The Middle East being at the heart of the spice and trade routes, airlines are particularly important to connect the region to the rest of the world, accelerate global commerce and help e-commerce merchants explore new territories. In the region, 3 airlines recently started offering PayPal to their consumers Airlines: the largest online category
  26. 26. PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST24 PayPal has partnered with Qatar Airways to offer a seamless payment experience, whether you are in Europe, North America, or Asia. Qatar Airways has started offering PayPal on its Mobile App and optimized mobile website in August. These new platforms now offer the same level of security, convenience and global reach than the Qatar Airways website, thanks to PayPal. PayPal users can buy Qatar Airways tickets in 18 different currencies around the world, from hundreds of countries. Qatar Airways and PayPal have also partnered on innovative marketing campaigns to offer their customers great promotions on incredible destinations. Royal Jordanian’s role as Jordan’s national carrier has long been established, since 1963. Now under the guidance of His Majesty King Abdullah II, Royal Jordanian has ascended from humble beginnings with three aircraft and four regional destinations, to become one of the elite members of a global alliance, a fleet comprising more than 30 aircraft, and a destination network of 60 global stops. Not only has Royal Jordanian grown in size, its reputation has been cemented in the public eye through its full membership in oneworld since 2007. Strategically located in Amman, Royal Jordanian’s central hub provides the ideal location through which Europe, Asia, Africa, and anywhere in the Middle East can be easily reached. Royal Jordanian’s Amman City Terminal at 7th Circle provides a central locale for sales and early boarding services. Royal Jordanian is proud to fly in and out of its main airport, Queen Alia International Airport (QAIA), conveniently situated just outside the city. Since May 2013, travelers booking on the Royal Jordanian website can now benefit from added convenience and security, paying through PayPal. All RJ customers flying to and from Jordan can opt to buy tickets online by using PayPal for payment. This service covers RJ customers purchasing their tickets in the Middle East, North Africa, Europe, Asia and North America. This partnership offers Royal Jordanian customers the best ticket experience ever, by offering them yet more payments options. PayPal buyers can buy Royal Jordanian tickets in 10 different currencies around the world, from hundreds of countries. Etihad Airways, the national airline of the United Arab Emirates made its first commercial flight in November 2003. Since then, the Abu Dhabi-based airline has grown faster than any other in commercial aviation history, offering its award-winning services to 94 destinations in Africa, Asia, Australia, Europe, the Middle East and the Americas on an environmentally friendly fleet of 80 aircraft. More than 16,000 employees from 138 nationalities offer the highest standards of service and comfort both on the ground and in the air. Customers can enjoy world-class cuisine, flat-beds and suites in its premium cabins and the widest seats in economy, as well as inflight wi-fi connectivity and more than 600 hours of on- demand in-flight entertainment. As recently as August 2013, Etihad added PayPal to its website to allow Etihad consumers to pay safely and conveniently. Starting with the United Kingdom and soon expanding to most of the world, travelers using Etihad’s website are able to buy tickets online by using PayPal for payment. This new partnership offers Eithad Airways customers the best ticket experience ever, by offering them yet more payments options.
  27. 27. Welcome shoppers who prefer using PayPal 132 million PayPal customers worldwide love the convenience and security of PayPal, where they can pay from their PayPal balance, debit or credit card, or bank account in some countries. The PayPal logo reassures buyers who may be unfamiliar with a website and customers check out in three easy clicks so more of them complete the sale. Easily integrate PayPal with your checkout Express Checkout is made to work with many leading shopping carts and payment gateways so it’s easy to add to a website’s existing checkout. Once a merchant has opened his/her PayPal Business account, it is easy to follow the cart provider’s instructions to enable PayPal in the website’s checkout. PayPal Express Checkout PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST 25 PayPal Express Checkout Solutions & Log In with PayPal PayPal is the easier, faster and safer way to pay and get paid online. Sellers don’t have to wait to get paid as payments appear in their PayPal account within seconds. As a trusted global leader in online payments, PayPal has secured transactions for over 15 years. Our most popular payment solution in the Middle East is the PayPal Express Checkout product, which allows merchants to receive money from our 132 million global users. We also offer PayPal Mobile Express Checkout, as already 10% of all transactions in 2012 came from mobile, and PayPal believes that in 2015 50% of all e-commerce transactions will be mobile transactions. PayPal Mobile Express Checkout Mobile Express Checkout (MEC) is a PayPal product solution that allows online retailers to optimize their checkout experience for mobile devices. With PayPal’s MEC, customers do not have to re-enter shipping, billing, or payment information to buy with PayPal. Data entry is minimized and the complete transactional experience is optimized and simplified for the small screen. Customers just need to log-in to their PayPal account, confirm payment and the transaction is complete. MEC is designed to help businesses increase sales and conversion rates via mobile platforms. For existing PayPal merchants, MEC leverages existing Express Checkout implementation so they can take advantage of the mobile checkout experience with only minimal programming changes. PayPal supports several implementations of Mobile Express Checkout. Businesses can provide a complete mobile website, or they can create a mobile phone app in which the checkout button is integrated into the app itself.
  28. 28. Log In with PayPal Log In with PayPal is a solution that enables a merchant’s customers to sign in to a merchant’s website quickly and securely using their PayPal login credentials. Merchants do not have to worry about the cost and hassle of storing user data on their system. It can help merchants grow their member base since it will reduce friction during account set-up. Log In with PayPal will let customers import their PayPal data onto the merchant’s website. Log In with PayPal also offers a seamless checkout feature. This feature gives customers who are already logged in with PayPal a choice to checkout without the need to log into PayPal again. Benefits of PayPal Checkout Products Security: Customers never input or share financial details with sellers Usability: A seamless customer experience, no cumbersome data entry Integration: Quick deployment and integration Easy payment: Payment can be made in just two clicks Strong fraud detection: Constant controls and risk profiling. PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST26
  29. 29. PayPal Pte Limited, a Singaporean company (“PayPal”) is not liable for, and does not take any responsibility for, the contents of this report that are produced by third parties or for any reliance placed by any third party on this report. This does not apply to the content provided by PayPal. This report has not taken into account your objectives, situation or needs and you should contact PayPal to obtain further information about the PayPal service before relying on this report.
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