UAE e-commerce reaches new heights, as the local digital economy evolves at a rapid pace
- Checkout.com’s third Digital Transformation Report in MENA reveals that 96 percent of UAE shoppers regularly shop ecommerce
- Digital wallets see a near doubling in preference in the UAE over the last 24 months
- Enthusiasm for crypto is growing among UAE residents
- 59% of 18-40 year olds expressing interest in paying for goods and services in crypto or stablecoins in the next 12 months
- Read full report here
Dubai, UAE, October 06, 2022: E-commerce in the United Arab Emirates has settled into a stable, high-growth era, with increased opportunities for e-commerce players. Data from leading global payment solutions provider Checkout.com’s report: Digital Transformation in MENA 2022, proves that the e-commerce trends accelerated by the pandemic are here to stay.
Ecommerce penetration continues to mature and deepen
Year-over-year data from Checkout.com’s third annual report on digital transformation in the region suggests that consumers in the UAE are increasingly turning to their digital devices and spending more time and money online. According to the report, 96% of UAE consumers now shop ecommerce, an increase from 89% from last year. This comes as a testament to the continued consumer demand of the flexibility and comfort to shop online.
According to the report, 4 in 10 consumers in UAE shopped online weekly or more frequently in 2022. Moreover, the eCommerce market in the UAE is expected to grow further over the next 12 months with 80% of UAE consumers saying they will maintain or increase their current level of ecommerce spending into 2023.
Digital payments steadily gain favor among UAE consumers
The growth of the e-commerce market in the UAE is driving the increased demand for fast and convenient payment methods ranging from Buy Now, Pay Later (BNPL) to crypto and digital wallets. In line with this, 75% of consumers in UAE cite a digital payment method as their preferred payment option for ecommerce, a near doubling in the popularity of digital wallets compared to figures from 2021.
Moreover, 45% of consumers in the UAE say they used BNPL in the last 12 months, an increase from just 21% who used it the year before, this number is expected to surge further with an additional 27% planning to use BNPL in the coming 12 months.
With the ever increasing average time people spend on social media per day, it is not surprising that the preference for social commerce in the UAE more than doubled, reaching 16%. Regionally, 20% of consumers in MENA say they most frequently shop ecommerce in a social media channel which represents a 43% growth in the past 24 months.
Growing enthusiasm for crypto
The UAE’s continued investment in the rapid growth and regulation of crypto currencies as well as the establishment of the Virtual Assets Regulatory Authority (VARA) has generated a great interest among residents who see great potential in cryptocurrency and blockchain technologies. The report results only confirms this with 42% of 18-40 year olds in the UAE stating they have held digital assets such as crypto, stablecoins and NFTs, and 59% of 18-40 year olds would like to be able to pay for goods and services in crypto or stablecoins in the next 12 months
Remo Giovanni Abbondandolo, Senior Vice President for MENA at Checkout.com, said: "The report validates our conclusions from last year – that the UAE’s eCommerce and digital payment ecosystem is growing rapidly. The UAE is one of the most connected societies in the region and consumers here have achieved a high level of maturity when it comes to eCommerce, they are at the top of eCommerce usage in the region and globally.”
“Additionally, the growing trust in online payments by shoppers means the digital transformation of the region's retail sector is well underway. This is underlined by the emergence of Web3 as a key component of the online experience, with shoppers showing a significant appetite for transacting on-chain, and a desire both to be paid and to pay in digital currencies," he added
As seen in the report, fintech and digital payments adoption continues to soar across the region. Merchants are racing to keep up and as they do so, they continue to innovate and diversify the consumer offering. Consumers, of course, are quick to respond and the competitive landscape sharpens as the benchmark for consumer expectations continues to climb. To read the report in detail and know more about Checkout.com, please visit this link.
PR contact: [email protected]
The Digital Transformation in MENA 2022 report draws insights from a regional survey, which polled more than 15,500 consumers in August 2022 in the UAE, Saudi Arabia, Egypt, Jordan, Qatar, Kuwait, Bahrain, and Pakistan.
Checkout.com is a global payments solution provider that helps businesses and their communities thrive in the digital economy. Purpose-built with performance, scalability and speed in mind, our modular payments platform is ideal for enterprise businesses looking to seamlessly integrate better payment solutions. With a global team spread across 19 offices worldwide, we offer innovative solutions that flex to your needs, valuable insights that help you get smart about your payments’ performance, and expertise you can count on as you navigate the complexities of an ever-shifting world. Find out more at www.checkout.com