Consumers are increasingly turning to digital payment methods instead of cash across the UAE and Saudi Arabia, according to new data from Checkout.com, the global payments solution provider.
New Checkout.com research now reveals a 26 per cent year-on-year rise in the number of unique cards used for online purchases in the UAE and Saudi Arabia between July and August, suggesting that people are increasingly going online for purchases.
Past data revealed a 56 per cent increase in consumers engaging in e-commerce weekly since 2020.
Checkout.com says these findings underscore the “unmistakable demise” of cash in the region, with the preference for cash dropping to as low as 10 per cent among the local population.
Remo Giovanni Abbondandolo, general manager at Checkout.com
Remo Giovanni Abbondandolo, general manager of MENA at Checkout.com, commented: “As economies in the region continue to diversify and digitise, these insights underscore the immense opportunity now available to merchants to leverage payment innovations to drive better performance and enhance their revenue.”
The payment solution provider’s latest analysis also highlights the growing popularity of Buy Now, Pay Later (BNPL) options, and increased consumer confidence in key industries such as travel.
BNPL increases in popularity
The use of BNPL payments in the UAE and Saudi Arabia skyrocketed by 200 per cent between July and August compared to the same period in 2023.
This growth, evident in transactions processed by Checkout.com for merchants like Tamara and Tabby, hammers home the fact that consumers are demanding flexible payment plans now more than ever. For this reason, many merchants can no longer afford to miss offering this rapidly growing finance option to their customers.
While the digital payments landscape is undoubtedly maturing, usage has been especially pronounced in key industries including travel. Competition in the online travel sector has always been tough, with thin margins and merchants challenged to manage transactions across a global ecosystem.
However, online payment transactions in the category grew by a significant 48 per cent across the UAE and Saudi Arabia in July and August compared to the same period in 2023. This growth suggests increased consumer confidence in the security, speed, and convenience of digital payment solutions that merchants offer in the travel space.
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