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stateofpayments.com
State of Payments 2016
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 onlyexplore 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 social@payfort.com to share your
thoughts. We have also provided a feedback section within the report where you can share
your thoughts.
TABLE OF CONTENT
Trends
Marketsize
Marketsize Forecast
Acceptance Ratio
Refunds
Seasonality
Demographics
Population
Internet User
Online Buyers
Social Network
Buyers by Genders
Age Group
Income Level
Survey
Online Shopping in the Arab World
What type of Products are Arab shoppers buying
How Shoppers are Influenced
Payment, Security & Privacy
Challenges
Failure from 3D Secure
Credit Card Penetration
Fraud and Risk Tolerance
Mobile Payment
Trust
E-commerce Utopia
About the Report
Why 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
1.09b
1.26b
0.73b0.78b
0.55b
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,
howeverit 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
MARKETSIZE
UNITED 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,
howeverit 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
MARKETSIZE
KINGDOM 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,
howeverit 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
0.87b
1.03b
1.40b
1.84b
.006b .009b
MARKETSIZE
EGYPT
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,
howeverit 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
MARKETSIZE
KUWAIT
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,
howeverit 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
MARKETSIZE
LEBANON
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,
howeverit 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#stateofpayments
20152014
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
280m
310m
3.7m 4.1m
50m 56m
400m410m
1000m
900m
800m
700m
600m
500m
400m
300m
200m
100m
0
20152014
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
MARKETSIZE
JORDAN
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,
howeverit 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.
300m
340m
40m
60m
210m
250m
1.2m 1.5m
8 #stateofpayments
1000m
900m
800m
700m
600m
500m
400m
300m
200m
100m
0
20152014
AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT
MARKETSIZE
QATAR
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,
howeverit 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.
300m
320m
45m 49m
38m 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
MARKETSIZE
AIRLINES
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,
howeverit 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
MARKETSIZE
TRAVEL
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,
howeverit 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
MARKETSIZE
ECOMMERCE
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,
howeverit 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
MARKETSIZE
ENTERTAINMENT
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,
howeverit 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
10m
12.4m
6.25m
8.82m
3.75m
4.15m
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
.65b
1.36b
.42b .65b
1.26b
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
7.06b
6.68b
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 6.90m
56m
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
49m
83m
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
23.8m
2.69m3.87m 4.15m6.90m
25#stateofpayments
ACCEPTANCE RATIO
OVERVIEW
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 RATIO
UNITED 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 RATIO
KINGDOM 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 RATIO
EGYPT
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 RATIO
KUWAIT
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 RATIO
LEBANON
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 RATIO
JORDAN
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 RATIO
QATAR
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 RATIO
AIRLINES
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 RATIO
TRAVEL
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 RATIO
ECOMMERCE
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 RATIO
ENTERTAINMENT
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 RATIO
MARKETPLACE
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
REFUNDS
UNITED 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 #stateofpayments
20152014
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%
REFUNDS
KINGDOM 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%
REFUNDS
EGYPT
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 #stateofpayments
20152014
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%
REFUNDS
KUWAIT
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%
20152014
43#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%
REFUNDS
LEBANON
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
REFUNDS
JORDAN
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#stateofpayments
20152014
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%
REFUNDS
QATAR
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 #stateofpayments
20152014
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%
REFUNDS
AIRLINES
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#stateofpayments
20152014
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%
REFUNDS
TRAVEL
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
REFUNDS
ECOMMERCE
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#stateofpayments
20152014
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%
REFUNDS
ENTERTAINMENT
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
REFUNDS
MARKETPLACE
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
SEASONALITY
AIRLINES 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 different 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
SEASONALITY
AIRLINES 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 different 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
9.3m
10.8m
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
SEASONALITY
TRAVEL 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 different 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
15,905
13,952
8,683 7,446
2015
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
54 #stateofpayments
SEASONALITY
TRAVEL 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 different 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
SEASONALITY
ECOMMERCE 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 different 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
SEASONALITY
ECOMMERCE 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 different 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
5.2m
6.9m
2015
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
57#stateofpayments
SEASONALITY
ENTERTAINMENT 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 different 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
SEASONALITY
ENTERTAINMENT 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 different 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
0.07m
0.14m 0.08m
-0.83m
0.08m
0.30m
-0.30m -0.26m
2m
-0.27m
2015
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
59#stateofpayments
SEASONALITY
MARKETPLACE 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 different 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
-325
378
3,850
4,369
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
SEASONALITY
MARKETPLACE 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 different 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
30.8m
31.5m
JORDAN
6.6m
6.7m
2.1m
2.2m
2014 2015
UAE
9.0m
9.1m
EGYPT
89.5m
90.6m
KUWAIT
3.7m
3.9m
LEBANON
4.5m
4.6m
63#stateofpayments
40m
30m
20m
10m
0m
8.5m
8.2m
20.8m
19.6m
31.4m
28.3m
3.1m
2.9m
3.6m
3.3m
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
12.0m
10.6m
17.7m
15.2m
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%
TWITTER
FACEBOOK
GOOGLE+
LINKEDIN
INSTAGRAM
PINTEREST
WORDPRESS
FLICKR
YOUTUBE
IDONOTUSESOCIALMEDIA
15.2%
5.8%
4.4%
6.1%
SOCIAL NETWORKS
UNITED ARAB EMIRATES
Just like other areas of the world, the Middle East has
embraced social media. It is estimatedthat 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%
TWITTER
FACEBOOK
GOOGLE+
LINKEDIN
INSTAGRAM
PINTEREST
WORDPRESS
FLICKR
YOUTUBE
6.6%
3.2%
5.1%
5.2%
SOCIAL NETWORKS
KINGDOM OF SAUDI ARABIA
Just like other areas of the world, the Middle East has
embraced social media. It is estimatedthat 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.
IDONOTUSESOCIALMEDIA
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%
TWITTER
FACEBOOK
GOOGLE+
LINKEDIN
INSTAGRAM
PINTEREST
WORDPRESS
FLICKR
YOUTUBE
9.4%
5.2%
1.4%
SOCIAL NETWORKS
EGYPT
Just like other areas of the world, the Middle East has
embraced social media. It is estimatedthat 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.
IDONOTUSESOCIALMEDIA
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%
TWITTER
FACEBOOK
GOOGLE+
LINKEDIN
INSTAGRAM
PINTEREST
WORDPRESS
FLICKR
YOUTUBE
11.0%
5.1%
3.5%
7.5%
SOCIAL NETWORKS
KUWAIT
Just like other areas of the world, the Middle East has
embraced social media. It is estimatedthat 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.
IDONOTUSESOCIALMEDIA
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%
FACEBOOK
GOOGLE+
LINKEDIN
INSTAGRAM
PINTEREST
WORDPRESS
FLICKR
YOUTUBE
14.6%
4.6%
2.0%
2.6%
SOCIAL NETWORKS
LEBANON
Just like other areas of the world, the Middle East has
embraced social media. It is estimatedthat 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.
IDONOTUSESOCIALMEDIA
TWITTER
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%
TWITTER
FACEBOOK
GOOGLE+
LINKEDIN
INSTAGRAM
PINTEREST
WORDPRESS
FLICKR
YOUTUBE
10.3%
3.4%
5.1%
4.9%
SOCIAL NETWORKS
JORDAN
Just like other areas of the world, the Middle East has
embraced social media. It is estimatedthat 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.
IDONOTUSESOCIALMEDIA
71#stateofpayments
84.8%
47.7%
55.0%
49.7%
52.3%
60.9%
TWITTER
FACEBOOK
GOOGLE+
LINKEDIN
INSTAGRAM
PINTEREST
WORDPRESS
FLICKR
YOUTUBE
21.2%
6.0%
4.0%
6.6%
SOCIAL NETWORKS
QATAR
Just like other areas of the world, the Middle East has
embraced social media. It is estimatedthat 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.
IDONOTUSESOCIALMEDIA
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 GROUP
UNITED 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 efforts 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 outlierfound in our demographics research
is Qatar’s older, 40+ age group appears to be veryactive
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 GROUP
KINGDOM 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 efforts 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 outlierfound in our demographics research
is Qatar’s older, 40+ age group appears to be veryactive
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 GROUP
EGYPT
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 efforts 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 outlierfound in our demographics research
is Qatar’s older, 40+ age group appears to be veryactive
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 GROUP
KUWAIT
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 efforts 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 outlierfound in our demographics research
is Qatar’s older, 40+ age group appears to be veryactive
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 GROUP
LEBANON
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 efforts 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 outlierfound in our demographics research
is Qatar’s older, 40+ age group appears to be veryactive
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 GROUP
JORDAN
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 efforts 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 outlierfound in our demographics research
is Qatar’s older, 40+ age group appears to be veryactive
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 GROUP
QATAR
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 efforts 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 outlierfound in our demographics research
is Qatar’s older, 40+ age group appears to be veryactive
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 LEVEL
UNITED 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 LEVEL
KINGDOM 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 LEVEL
EGYPT
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 LEVEL
KUWAIT
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 LEVEL
LEBANON
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 LEVEL
JORDAN
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 LEVEL
QATAR
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%
UAELEA
DS ONLINE SHOP
PINGBY
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 offline, 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 affects 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 offline.
SHOPPING BEHAVIOUR
INTHE REGION
ONLINESHOPPING
INTHEARABWORLD
CONSUMER SURVEY INFOGRAPHIC
Understanding 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
consumerbase. With data coveringthe offlineto onlinetransition, preferred payment options, as well as securityand 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.
KUWAITI
SHOP VIA
MOBILE
56%
EGYPTIANS
SHOP VIA
MOBILE
42%
67%
DESKTOP
24%
TABLETS
49%
MOBILE
ONLINE SHOPPING
FREQUENCY
7%
9%
16%
21%
14%
34%
TWICE A
MONTH
ONCE A
MONTH
TWICE A
WEEK
ONCE PER
WEEK
ONCE IN
2 MONTHS
ONCE IN
3 - 6 MONTHS
53%PURCHASE AT LEAST
ONCE PER MONTH
DEVICE OF
CHOICE FOR
ONLINE
SHOPPERS
The 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 IS
COMFORTABLE
8%
FITS MY BUSY
LIFESTYLE
4%
EASY RETURNS
4%
OTHERS
2%
PRODUCT
VARIETY
27%
UNIQUE STUFF
23%
BETTER PRICES
33%
WHYDO YOU
SHOP
ONLINE?
Online shopping can offer 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.
WHATTYPE OF PRODUCTS ARE
ARAB 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 PRODUCTS
BYCOUNTRY
MOBILE
PHONESEGYPT
UTILITIES
BILLS
LAPTOPS TABLETS CLOTHES
61% 38% 37% 35% 34%
UAE
FLIGHT
TICKETS
CLOTHES MOBILE
PHONES
UTILITIES
BILL
WATCHES
55% 43% 42% 36% 35%
KSA
CLOTHES FLIGHT
TICKETS
WATCHES MOBILE
PHONES
UTILITIES
BILL
41% 40% 38% 38% 38%
KUWAIT
FLIGHT
TICKETS
UTILITIES
BILLS
PERFUMES CLOTHES MOBILE
PHONES
55% 48% 39% 36% 35%
WHAT SITES ARE POPULAR
INTHE 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 affect a shopper’s decision to buy.
While ads and email marketing have some impact, price and third
party reviews are what influence shoppers.
WHAT INFLUENCES
ARAB SHOPPERS
BEST
DEALS
PRODUCT
REVIEW
FRIENDS
RECOMMENDATION
HOWSHOPPERSAREINFLUENCED
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 offline 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 difficult 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 TOUCH
THE PRODUCT
BETTER RETURN
POLICIES
55% 36%
OTHERSNO SHIPPING
FRUSTRATION
30% 2%
IN-STORE
DISCOUNTS
29%
NO PRODUCT
DISAPPOINTMENT
45%
INSTANT
GRATIFICATION
32%
QUALITY TIME
WITH 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 MATTERTO
ONLINE SHOPPERS
9/10PEOPLE CHECK
REVIEWS
BEFORE ONLINE
PURCHASE
LEARNING FROM
OFFLINE SHOPPING
BEHAVIOUR
91#stateofpayments
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 offline shopping however with 80% of offline shoppers
preferring to pay with cash at brick and mortar locations. This trend is most
prominenet in Egypt where 91% of offline transactions are settled with cash.
HOW DO ARAB SHOPPERS
WANTTO 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 SHOPPERS
SELECT CASH
33%
OF UAE SHOPPERS
SELECT 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 PERSONAL
INFORMATION 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 PAYMENT
INFORMATION IS SECURE
35%
23%
22%
12%
9%
QUITE CONFIDENT
MODERATELY CONFIDENT
EXTREMELY CONFIDENT
SLIGHTLY CONFIDENT
NOT AT ALL CONFIDENT
HOW OFTEN DO PRIVACY CONCERNS
PREVENT 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 offline 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 offline 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.
HOWTO BRINGTHE REMAINING
ARAB 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 IMPACT
SHOPPER CONFIDENCE?
I LIKE BECAUSE
MORE SECURE
HATE FORGETTABLE
MORE PASSWORDS
52% 29% 19%
50%
UAE, KSA & KUWAIT
SHOPPERS FEEL SECURE
USING 3D SECURE
LOCAL ONLINE
SERVICES ARE
NOT GOOD
11%
OTHERS
10%
DON’T TRUST
ONLINE PAYMENTS
44%
DON’T HAVE
CREDIT CARDS
35%
WHY DON’T YOU
SHOP ONLINE
DONT TRUST 3RD
PARTY SERVICES
92#stateofpayments
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 offers an extra layer of protection for both cardholders and merchants. It
works byrequiring customers to enteran additional password aftercheckout completion
to “verify” that they are the cardholder.
CHALLENGE
Even 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?
94 #stateofpayments
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
http://stateofpayments.com/sop16_vp/maarid_video.html
http://stateofpayments.com/sop16_vp/maarid_video.html
FAILURE FROM 3D SECURE
POSSIBLE SOLUTIONS
It’s important to rememberthat 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
effectively 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 off.
Regularly re-evaluate: As your businesses continues to grow and expand to new markets,
you’ll likely need to accept different 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 INSIGHTS
Unfortunately 3D secure has proven to be an obstacle for many merchants across the
region. But as difficult 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.
95#stateofpayments
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%.
CHALLENGE
With 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.
96 #stateofpayments
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 local
payments 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
http://stateofpayments.com/sop16_vp/fouad_video.html
http://stateofpayments.com/sop16_vp/fouad_video.html
http://stateofpayments.com/sop16_vp/ahmed_video.html
http://stateofpayments.com/sop16_vp/ahmed_video.html
CREDIT CARD PENETRATION
SOLUTION
For 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 offer 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 INSIGHT
The 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 theywant 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.
97#stateofpayments
FRAUD AND RISK TOLERANCE
As consumers continue to demand simpler solutions and push towards ‘ease of
use’, security is becoming a more difficult 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 payfora coffee, ora one-click purchase on Amazon, quick and
easy is winning the war over secure.
CHALLENGE
Unfortunately, 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?
1000100001
98 #stateofpayments
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 affect 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...
http://stateofpayments.com/sop16_vp/atish_video.html
http://stateofpayments.com/sop16_vp/atish_video.html
http://stateofpayments.com/sop16_vp/mohammed_video.html
http://stateofpayments.com/sop16_vp/mohammed_video.html
FRAUD AND RISK TOLERANCE
POSSIBLE SOLUTION
The 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 off of.
Educate and train your staff 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 preventiontools you use. It is importantthat everyone in yourorganization
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 SecurityStandards (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 cardholderinformation, effective internal controls. Be
sure to check the DSS regularly and review your own security measures frequently.
PAYFORT INSIGHT
The 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 difficult for
merchants to meet the needs of shoppers without making some compromises.
Businesses that can afford 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.
1000100001
99#stateofpayments
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. Difficult challenges
such as perceived security threats, cross platform support, and slow user adoption make
it difficult 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.
100 #stateofpayments
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.
http://stateofpayments.com/sop16_vp/atish_video.html
http://stateofpayments.com/sop16_vp/atish_video.html
http://stateofpayments.com/sop16_vp/ankit_video.html
http://stateofpayments.com/sop16_vp/ankit_video.html
State of Payments 2016
State of Payments 2016
State of Payments 2016
State of Payments 2016
State of Payments 2016
State of Payments 2016
State of Payments 2016
State of Payments 2016
State of Payments 2016
State of Payments 2016
State of Payments 2016
State of Payments 2016
State of Payments 2016
State of Payments 2016

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State of Payments 2016

  • 3. 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 onlyexplore 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 social@payfort.com to share your thoughts. We have also provided a feedback section within the report where you can share your thoughts.
  • 4. TABLE OF CONTENT Trends Marketsize Marketsize Forecast Acceptance Ratio Refunds Seasonality Demographics Population Internet User Online Buyers Social Network Buyers by Genders Age Group Income Level Survey Online Shopping in the Arab World What type of Products are Arab shoppers buying How Shoppers are Influenced Payment, Security & Privacy Challenges Failure from 3D Secure Credit Card Penetration Fraud and Risk Tolerance Mobile Payment Trust E-commerce Utopia About the Report Why 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
  • 5. Changes that are shaping Middle East E-commerce
  • 6. 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 1.09b 1.26b 0.73b0.78b 0.55b 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, howeverit 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
  • 7. 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 MARKETSIZE UNITED 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, howeverit 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
  • 8. 5b 4b 3b 2b 1b 0 20152014 AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT 2.20b 2.67b 0.92b 1.55b 1.50b 2.25b MARKETSIZE KINGDOM 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, howeverit 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
  • 9. 5b 4b 3b 2b 1b 0 20152014 AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT 1.90b 2.18b 0.87b 1.03b 1.40b 1.84b .006b .009b MARKETSIZE EGYPT 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, howeverit 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
  • 10. 1000m 900m 800m 700m 600m 500m 400m 300m 200m 100m 0 20152014 AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT 560m 2.5m 2.7m MARKETSIZE KUWAIT 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, howeverit 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
  • 11. 1000m 900m 800m 700m 600m 500m 400m 300m 200m 100m 0 MARKETSIZE LEBANON 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, howeverit 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#stateofpayments 20152014 AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT 280m 310m 3.7m 4.1m 50m 56m 400m410m
  • 12. 1000m 900m 800m 700m 600m 500m 400m 300m 200m 100m 0 20152014 AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT MARKETSIZE JORDAN 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, howeverit 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. 300m 340m 40m 60m 210m 250m 1.2m 1.5m 8 #stateofpayments
  • 13. 1000m 900m 800m 700m 600m 500m 400m 300m 200m 100m 0 20152014 AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT MARKETSIZE QATAR 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, howeverit 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. 300m 320m 45m 49m 38m 44m .5m .6m 9#stateofpayments
  • 14. 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 MARKETSIZE AIRLINES 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, howeverit 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
  • 15. 3b 2b 1b 0 UAE KSA EGYPT KUWAIT LEBANON JORDAN QATAR 1.14b 1.65b .92b 1.55b .87b 1.03b .04b .06b MARKETSIZE TRAVEL 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, howeverit 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
  • 16. 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 MARKETSIZE ECOMMERCE 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, howeverit 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
  • 17. MARKETSIZE ENTERTAINMENT 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, howeverit 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 10m 12.4m 6.25m 8.82m 3.75m 4.15m 1.25m 1.52m 20152014 2.5m 2.7m .50m .58m 13#stateofpayments
  • 18. 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 .65b 1.36b .42b .65b 1.26b 2.8b .78b 1.09b 14 #stateofpayments
  • 19. 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
  • 20. 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 7.06b 6.68b 2.30b 8.35b .012b .036b 2.67b 1.55b 16 #stateofpayments
  • 21. 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
  • 22. 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
  • 23. 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 6.90m 56m 98m 414m 492m
  • 24. 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
  • 25. 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 49m 83m 44m 86m .58m 1.26m 21#stateofpayments
  • 26. 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
  • 27. 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
  • 28. 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
  • 29. 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 23.8m 2.69m3.87m 4.15m6.90m 25#stateofpayments
  • 30. ACCEPTANCE RATIO OVERVIEW 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
  • 31. 20152014 100% 80% 60% 40% 20% 0 AIRLINES TRAVEL ECOMMERCE ENTERTAINMENT 60% 65% MARKETPLACE 70% 78% 60% 63% 69% 71% 80%80% ACCEPTANCE RATIO UNITED 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
  • 32. ACCEPTANCE RATIO KINGDOM 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
  • 33. ACCEPTANCE RATIO EGYPT 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
  • 34. ACCEPTANCE RATIO KUWAIT 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
  • 35. ACCEPTANCE RATIO LEBANON 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
  • 36. ACCEPTANCE RATIO JORDAN 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
  • 37. ACCEPTANCE RATIO QATAR 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
  • 38. ACCEPTANCE RATIO AIRLINES 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
  • 39. ACCEPTANCE RATIO TRAVEL 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
  • 40. ACCEPTANCE RATIO ECOMMERCE 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
  • 41. ACCEPTANCE RATIO ENTERTAINMENT 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
  • 42. ACCEPTANCE RATIO MARKETPLACE 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
  • 43. 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
  • 44. REFUNDS UNITED 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 #stateofpayments 20152014 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%
  • 45. REFUNDS KINGDOM 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%
  • 46. REFUNDS EGYPT 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 #stateofpayments 20152014 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%
  • 47. REFUNDS KUWAIT 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% 20152014 43#stateofpayments
  • 48. 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% REFUNDS LEBANON 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
  • 49. REFUNDS JORDAN 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#stateofpayments 20152014 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%
  • 50. REFUNDS QATAR 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 #stateofpayments 20152014 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%
  • 51. REFUNDS AIRLINES 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#stateofpayments 20152014 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%
  • 52. REFUNDS TRAVEL 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
  • 53. REFUNDS ECOMMERCE 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#stateofpayments 20152014 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%
  • 54. REFUNDS ENTERTAINMENT 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
  • 55. REFUNDS MARKETPLACE 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
  • 56. SEASONALITY AIRLINES 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 different 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
  • 57. SEASONALITY AIRLINES 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 different 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 9.3m 10.8m 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
  • 58. SEASONALITY TRAVEL 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 different 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 15,905 13,952 8,683 7,446 2015 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 54 #stateofpayments
  • 59. SEASONALITY TRAVEL 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 different 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
  • 60. SEASONALITY ECOMMERCE 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 different 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
  • 61. SEASONALITY ECOMMERCE 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 different 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 5.2m 6.9m 2015 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 57#stateofpayments
  • 62. SEASONALITY ENTERTAINMENT 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 different 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
  • 63. SEASONALITY ENTERTAINMENT 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 different 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 0.07m 0.14m 0.08m -0.83m 0.08m 0.30m -0.30m -0.26m 2m -0.27m 2015 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 59#stateofpayments
  • 64. SEASONALITY MARKETPLACE 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 different 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 -325 378 3,850 4,369 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
  • 65. SEASONALITY MARKETPLACE 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 different 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
  • 66. Understand the population that is Driving Innovation
  • 67. 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 30.8m 31.5m JORDAN 6.6m 6.7m 2.1m 2.2m 2014 2015 UAE 9.0m 9.1m EGYPT 89.5m 90.6m KUWAIT 3.7m 3.9m LEBANON 4.5m 4.6m 63#stateofpayments
  • 68. 40m 30m 20m 10m 0m 8.5m 8.2m 20.8m 19.6m 31.4m 28.3m 3.1m 2.9m 3.6m 3.3m 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
  • 69. 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 12.0m 10.6m 17.7m 15.2m 2.6m 2.4m 2.1m 1.6m 1.3m 1.6m 1.2m .94m 2014 2015 65#stateofpayments
  • 70. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0 82.1% 41.3% 46.1% 49.1% 36.9% 55.2% TWITTER FACEBOOK GOOGLE+ LINKEDIN INSTAGRAM PINTEREST WORDPRESS FLICKR YOUTUBE IDONOTUSESOCIALMEDIA 15.2% 5.8% 4.4% 6.1% SOCIAL NETWORKS UNITED ARAB EMIRATES Just like other areas of the world, the Middle East has embraced social media. It is estimatedthat 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
  • 71. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0 64.5% 54.6% 44.7% 24.8% 52.2% 52.4% TWITTER FACEBOOK GOOGLE+ LINKEDIN INSTAGRAM PINTEREST WORDPRESS FLICKR YOUTUBE 6.6% 3.2% 5.1% 5.2% SOCIAL NETWORKS KINGDOM OF SAUDI ARABIA Just like other areas of the world, the Middle East has embraced social media. It is estimatedthat 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. IDONOTUSESOCIALMEDIA 67#stateofpayments
  • 72. 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% TWITTER FACEBOOK GOOGLE+ LINKEDIN INSTAGRAM PINTEREST WORDPRESS FLICKR YOUTUBE 9.4% 5.2% 1.4% SOCIAL NETWORKS EGYPT Just like other areas of the world, the Middle East has embraced social media. It is estimatedthat 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. IDONOTUSESOCIALMEDIA 68 #stateofpayments
  • 73. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0 76.5% 49.0% 51.4% 38.0% 51.8% 61.2% TWITTER FACEBOOK GOOGLE+ LINKEDIN INSTAGRAM PINTEREST WORDPRESS FLICKR YOUTUBE 11.0% 5.1% 3.5% 7.5% SOCIAL NETWORKS KUWAIT Just like other areas of the world, the Middle East has embraced social media. It is estimatedthat 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. IDONOTUSESOCIALMEDIA 69#stateofpayments
  • 74. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0 93.4% 53.0% 43.0% 50.3% 49.7% 47.7% FACEBOOK GOOGLE+ LINKEDIN INSTAGRAM PINTEREST WORDPRESS FLICKR YOUTUBE 14.6% 4.6% 2.0% 2.6% SOCIAL NETWORKS LEBANON Just like other areas of the world, the Middle East has embraced social media. It is estimatedthat 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. IDONOTUSESOCIALMEDIA TWITTER 70 #stateofpayments
  • 75. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0 88.5% 46.0% 54.0% 44.1% 37.5% 51.0% TWITTER FACEBOOK GOOGLE+ LINKEDIN INSTAGRAM PINTEREST WORDPRESS FLICKR YOUTUBE 10.3% 3.4% 5.1% 4.9% SOCIAL NETWORKS JORDAN Just like other areas of the world, the Middle East has embraced social media. It is estimatedthat 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. IDONOTUSESOCIALMEDIA 71#stateofpayments
  • 76. 84.8% 47.7% 55.0% 49.7% 52.3% 60.9% TWITTER FACEBOOK GOOGLE+ LINKEDIN INSTAGRAM PINTEREST WORDPRESS FLICKR YOUTUBE 21.2% 6.0% 4.0% 6.6% SOCIAL NETWORKS QATAR Just like other areas of the world, the Middle East has embraced social media. It is estimatedthat 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. IDONOTUSESOCIALMEDIA 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0 72 #stateofpayments
  • 77. 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
  • 78. AGE GROUP UNITED 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 efforts 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 outlierfound in our demographics research is Qatar’s older, 40+ age group appears to be veryactive 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
  • 79. AGE GROUP KINGDOM 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 efforts 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 outlierfound in our demographics research is Qatar’s older, 40+ age group appears to be veryactive 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
  • 80. AGE GROUP EGYPT 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 efforts 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 outlierfound in our demographics research is Qatar’s older, 40+ age group appears to be veryactive 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
  • 81. AGE GROUP KUWAIT 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 efforts 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 outlierfound in our demographics research is Qatar’s older, 40+ age group appears to be veryactive 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
  • 82. AGE GROUP LEBANON 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 efforts 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 outlierfound in our demographics research is Qatar’s older, 40+ age group appears to be veryactive 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
  • 83. AGE GROUP JORDAN 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 efforts 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 outlierfound in our demographics research is Qatar’s older, 40+ age group appears to be veryactive 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
  • 84. AGE GROUP QATAR 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 efforts 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 outlierfound in our demographics research is Qatar’s older, 40+ age group appears to be veryactive 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
  • 85. 4% 8% 14% 22% 32% 19% Less than $266 $266 - 532 $533 - 1065 $1066 - 2665 $2666+ Prefer no to say/Don’t know INCOME LEVEL UNITED 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
  • 86. 10% 14% 15% 22% 17% 22% Less than $266 $266 - 532 $533 - 1065 $1066 - 2665 $2666+ Prefer no to say/Don’t know INCOME LEVEL KINGDOM 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
  • 87. 22% 26% 20% 10% 5% 17% Less than $266 $266 - 532 $533 - 1065 $1066 - 2665 $2666+ Prefer no to say/Don’t know INCOME LEVEL EGYPT 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
  • 88. 5% 5% 14% 30% 29% 17% Less than $266 $266 - 532 $533 - 1065 $1066 - 2665 $2666+ Prefer no to say/Don’t know INCOME LEVEL KUWAIT 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
  • 89. 5% 8% 14% 30% 32% 11% Less than $266 $266 - 532 $533 - 1065 $1066 - 2665 $2666+ Prefer no to say/Don’t know INCOME LEVEL LEBANON 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
  • 90. 5% 19% 32% 28% 7% 9% Less than $266 $266 - 532 $533 - 1065 $1066 - 2665 $2666+ Prefer no to say/Don’t know INCOME LEVEL JORDAN 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
  • 91. 3% 13% 5% 25% 42% 12% Less than $266 $266 - 532 $533 - 1065 $1066 - 2665 $2666+ Prefer no to say/Don’t know INCOME LEVEL QATAR 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
  • 92. Inside the mind of today’s Arab shoppers
  • 93. 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% UAELEA DS ONLINE SHOP PINGBY 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 offline, 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 affects 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 offline. SHOPPING BEHAVIOUR INTHE REGION ONLINESHOPPING INTHEARABWORLD CONSUMER SURVEY INFOGRAPHIC Understanding 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 consumerbase. With data coveringthe offlineto onlinetransition, preferred payment options, as well as securityand privacy concerns, this infographic provides everything you need to better understand the Middle Eastern ecommerce market.
  • 94. 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. KUWAITI SHOP VIA MOBILE 56% EGYPTIANS SHOP VIA MOBILE 42% 67% DESKTOP 24% TABLETS 49% MOBILE ONLINE SHOPPING FREQUENCY 7% 9% 16% 21% 14% 34% TWICE A MONTH ONCE A MONTH TWICE A WEEK ONCE PER WEEK ONCE IN 2 MONTHS ONCE IN 3 - 6 MONTHS 53%PURCHASE AT LEAST ONCE PER MONTH
  • 95. DEVICE OF CHOICE FOR ONLINE SHOPPERS The 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 IS COMFORTABLE 8% FITS MY BUSY LIFESTYLE 4% EASY RETURNS 4% OTHERS 2% PRODUCT VARIETY 27% UNIQUE STUFF 23% BETTER PRICES 33% WHYDO YOU SHOP ONLINE? Online shopping can offer 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
  • 96. 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. WHATTYPE OF PRODUCTS ARE ARAB 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
  • 97. TOP FIVE PRODUCTS BYCOUNTRY MOBILE PHONESEGYPT UTILITIES BILLS LAPTOPS TABLETS CLOTHES 61% 38% 37% 35% 34% UAE FLIGHT TICKETS CLOTHES MOBILE PHONES UTILITIES BILL WATCHES 55% 43% 42% 36% 35% KSA CLOTHES FLIGHT TICKETS WATCHES MOBILE PHONES UTILITIES BILL 41% 40% 38% 38% 38% KUWAIT FLIGHT TICKETS UTILITIES BILLS PERFUMES CLOTHES MOBILE PHONES 55% 48% 39% 36% 35% WHAT SITES ARE POPULAR INTHE 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
  • 98. 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 affect a shopper’s decision to buy. While ads and email marketing have some impact, price and third party reviews are what influence shoppers. WHAT INFLUENCES ARAB SHOPPERS BEST DEALS PRODUCT REVIEW FRIENDS RECOMMENDATION HOWSHOPPERSAREINFLUENCED 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%
  • 99. For many shoppers, the offline 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 difficult 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 TOUCH THE PRODUCT BETTER RETURN POLICIES 55% 36% OTHERSNO SHIPPING FRUSTRATION 30% 2% IN-STORE DISCOUNTS 29% NO PRODUCT DISAPPOINTMENT 45% INSTANT GRATIFICATION 32% QUALITY TIME WITH 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 MATTERTO ONLINE SHOPPERS 9/10PEOPLE CHECK REVIEWS BEFORE ONLINE PURCHASE LEARNING FROM OFFLINE SHOPPING BEHAVIOUR 91#stateofpayments
  • 100. 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 offline shopping however with 80% of offline shoppers preferring to pay with cash at brick and mortar locations. This trend is most prominenet in Egypt where 91% of offline transactions are settled with cash. HOW DO ARAB SHOPPERS WANTTO 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 SHOPPERS SELECT CASH 33% OF UAE SHOPPERS SELECT CREDIT CARD
  • 101. 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 PERSONAL INFORMATION 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 PAYMENT INFORMATION IS SECURE 35% 23% 22% 12% 9% QUITE CONFIDENT MODERATELY CONFIDENT EXTREMELY CONFIDENT SLIGHTLY CONFIDENT NOT AT ALL CONFIDENT HOW OFTEN DO PRIVACY CONCERNS PREVENT A PURCHASE 29% 29% 16% 14% 12% MOST OF THE TIME ABOUT HALF THE TIME ONCE IN A WHILE ALWAYS NEVER
  • 102. Those shoppers that remain offline 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 offline 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. HOWTO BRINGTHE REMAINING ARAB 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 IMPACT SHOPPER CONFIDENCE? I LIKE BECAUSE MORE SECURE HATE FORGETTABLE MORE PASSWORDS 52% 29% 19% 50% UAE, KSA & KUWAIT SHOPPERS FEEL SECURE USING 3D SECURE LOCAL ONLINE SERVICES ARE NOT GOOD 11% OTHERS 10% DON’T TRUST ONLINE PAYMENTS 44% DON’T HAVE CREDIT CARDS 35% WHY DON’T YOU SHOP ONLINE DONT TRUST 3RD PARTY SERVICES 92#stateofpayments
  • 103. Overcoming E-Commerce Challenges in the Middle East
  • 104. 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 offers an extra layer of protection for both cardholders and merchants. It works byrequiring customers to enteran additional password aftercheckout completion to “verify” that they are the cardholder. CHALLENGE Even 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? 94 #stateofpayments 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 http://stateofpayments.com/sop16_vp/maarid_video.html http://stateofpayments.com/sop16_vp/maarid_video.html
  • 105. FAILURE FROM 3D SECURE POSSIBLE SOLUTIONS It’s important to rememberthat 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 effectively 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 off. Regularly re-evaluate: As your businesses continues to grow and expand to new markets, you’ll likely need to accept different 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 INSIGHTS Unfortunately 3D secure has proven to be an obstacle for many merchants across the region. But as difficult 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. 95#stateofpayments
  • 106. 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%. CHALLENGE With 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. 96 #stateofpayments 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 local payments 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 http://stateofpayments.com/sop16_vp/fouad_video.html http://stateofpayments.com/sop16_vp/fouad_video.html http://stateofpayments.com/sop16_vp/ahmed_video.html http://stateofpayments.com/sop16_vp/ahmed_video.html
  • 107. CREDIT CARD PENETRATION SOLUTION For 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 offer 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 INSIGHT The 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 theywant 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. 97#stateofpayments
  • 108. FRAUD AND RISK TOLERANCE As consumers continue to demand simpler solutions and push towards ‘ease of use’, security is becoming a more difficult 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 payfora coffee, ora one-click purchase on Amazon, quick and easy is winning the war over secure. CHALLENGE Unfortunately, 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? 1000100001 98 #stateofpayments 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 affect 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... http://stateofpayments.com/sop16_vp/atish_video.html http://stateofpayments.com/sop16_vp/atish_video.html http://stateofpayments.com/sop16_vp/mohammed_video.html http://stateofpayments.com/sop16_vp/mohammed_video.html
  • 109. FRAUD AND RISK TOLERANCE POSSIBLE SOLUTION The 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 off of. Educate and train your staff 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 preventiontools you use. It is importantthat everyone in yourorganization 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 SecurityStandards (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 cardholderinformation, effective internal controls. Be sure to check the DSS regularly and review your own security measures frequently. PAYFORT INSIGHT The 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 difficult for merchants to meet the needs of shoppers without making some compromises. Businesses that can afford 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. 1000100001 99#stateofpayments
  • 110. 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. Difficult challenges such as perceived security threats, cross platform support, and slow user adoption make it difficult 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. 100 #stateofpayments 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. http://stateofpayments.com/sop16_vp/atish_video.html http://stateofpayments.com/sop16_vp/atish_video.html http://stateofpayments.com/sop16_vp/ankit_video.html http://stateofpayments.com/sop16_vp/ankit_video.html