The UAE and Saudi Arabia have seen a spike in digital payments as consumer preferences swing towards modern shopping trends, according to data from Checkout.com.
The company’s latest analysis highlights a rise in unique online shoppers, the growing popularity of Buy Now, Pay Later (BNPL) options, and increased consumer confidence in key industries such as travel.
The MENA region’s overall embrace of digital commerce has been well documented, with earlier Checkout.com data showing a 56 per cent increase in consumers engaging in e-commerce weekly since 2020.
Digital payments in UAE and Saudi
Moreover, this summer’s analysis 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 more people are going online for purchases.
This underscores the unmistakable demise of cash as the region’s preferred payment method, with the preference for cash dropping to as low as 10 per cent among the population in the UAE and Saudi Arabia.
Meanwhile, the summer period witnessed a surge in the adoption of Buy Now, Pay Later (BNPL) services among consumers.
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, underscores consumers’ increasing demand for flexible payment plans, and why 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 like travel.
Competition in the online travel sector has always been tough, with thin margins and merchants challenged to manage transactions across a global ecosystem.
Yet 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.
Remo Giovanni Abbondandolo, General Manager, MENA at Checkout.com, said: “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.”
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