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Middle East & Africa Online Payment Methods: Full Year 2017

Middle East & Africa Online Payment Methods: Full Year 2017

Online shoppers in Middle East and Africa wary of fraud in online payments

A new report from Hamburg-based online business research firm yStats.com, “Middle East & Africa Online Payment Methods: Full Year 2017” synthesizes data and trends in online and mobile payment in over 10 economies of the region. One finding is that adoption of online payment methods lags other global regions.

In most countries of the Middle East and many African nations, cash of delivery is the preferred method of payment for goods ordered online, bucking the global trend of credit card usage or other online payment methods such as PayPal and mobile wallets. Survey responses cited in the yStats.com report indicate that one of the reasons for this region-wide hesitance to use online payment methods is a lack of trust in their security.

Specifically, the yStats.com publication shows that a double digit percentage of respondents in the Middle Eastern countries indicate discomfort with online payments. A large share of online shoppers in the UAE, Saudi Arabia, Kuwait and Lebanon prefer cash over all other payment methods when shopping online. Likewise, potential online shoppers in Israel have stated a hesitance to make purchases because of payment security concerns.

On the African continent there is diversity in online payment adoption. In South Africa, online shoppers use credit and debit cards, though some surveyed consumers indicate reluctance to make online purchases for payment safety reasons. Online purchasers in Egypt show the same hesitance to make payment online as their Mideast neighbors. In Kenya, a movement away from cash on delivery is developing, as mobile money solution M-Pesa is the second most popular payment method in E-Commerce. Data cited in the yStats.com report shows that mobile payments are catching on throughout the Middle East and African economies, gaining a few percentage points in penetration in the last three years.


1. Management Summary
2. Global Developments
Payment Methods Preferred in E-Commerce, in % of Online Shoppers, Q1 2017
Card Spending, in USD trillion, and Breakdown by POS and E-Commerce, in %, 2015 & 2021f
Breakdown of E-Commerce Sales by Payment Methods, in %, 2021f
Top Two Payment Methods Preferred in Cross-Border Online Shopping, in % of Cross-Border Online Shoppers, 2016 & 2017
Reasons For Not Shopping Online, incl. Payment-Related, in % of Internet Users Who Do Not Shop Online, Q1 2017
FinTech Adoption Rate, in % of Internet Users, by Selected Countries, 2017
Most Used FinTech Services According to Internet Users, in %, 2017
Most Relevant Emerging Technologies for Large FinTech and Financial Companies to Invest In, in % of Respondents in Each Group, April 2017
Entities Expected to Be The Most Disruptive in FinTech in the Next Five Years According to Financial Services and FinTech Executives, in %, 2017
Top 10 VC-Backed FinTech Unicorns by Valuation, in USD billion, Q3 2017
Expected Annual ROI According to Financial Services and FinTech Executives, in %, 2017
Mobile Payment User Penetration, in % of Internet Users, by Regions, Q4 2015 & Q2 2017
Share of Internet Users Who Are Likely To Use Mobile Payment Next Year, in % of Internet Users, by Selected Countries, Q1 2017
Penetration of Bank Account Holders Willing to Share Personal Financial Data with Third-Party Providers to Use Their Services, in %, by Selected Countries, August 2017
Breakdown of the Number of Transactions/Purchases by Payment Methods, in %, as Perceived by Businesses and by Consumers, 2016
Factors Most Important to Consumers in Deciding to Use Mobile Payments, in %, 2016
Share of Internet Users Who Believe That Mobile Payment is Not Secure, in %, October 2016
Mobile Payment Security Features Demanded by Consumers and Implemented by Businesses, in %, 2016
Attitudes Towards Mobile Payment and Mobile Money, in % of Consumers, by Developed and Developing Markets, 2016
Contactless Payment Transaction Value, in USD billion, 2017e & 2019f
Number of Contactless Payment Users of Apple Pay, Samsung Pay and Android Pay, in millions, 2015 - 2017e
Apple Pay User Penetration Compared to Overall Mobile Payment User Penetration, in % of Internet Users, by Penetrated Markets, Q2 2017
3. Middle East
3.1. Regional
Breakdown of Payment Methods Preferred in E-Commerce, in % of Online Shoppers in GCC, October 2016
Top 3 Barriers to Online Shopping, in % of Local Millennials in the GCC Who Did Not Shop Online, July 2017
Number of FinTech Startups in MENA, 2013, 2015 & 2020f
Share of Online Shoppers in MENA Who Used Smartphone to Pay for Purchases Online, in %, 2016
3.2. UAE
Breakdown of Payment Methods Used in E-Commerce by Cash on Delivery and Credit or Debit Card, in % of Online Shoppers, March 2017
Breakdown of Payment Methods Preferred in Online Shopping, in % of Online Shoppers, 2016
Share of Consumers Who Believe That Retailers They Shop at Deploy Payment Security Tools to Prevent Fraud, by Retailers and Online Retailers, in %, 2016
3.3. Saudi Arabia
Payment Methods Used in E-Commerce, in % of Online Shoppers, May 2017
Breakdown of Payment Methods Preferred in Online Shopping, in % of Online Shoppers, 2016
Breakdown of Payment Methods Most Used in Online Shops According to E-Commerce Merchants, in % of Surveyed E-Commerce Merchants, June 2017
Perception of Increase in Credit Card Payments in Online Shops Over the Previous Year According to E-Commerce Merchants, in % of Surveyed E-Commerce Merchants, June 2017
Reasons for Not Offering Credit Card Payments in Online Shops, in % of Surveyed E-Commerce Merchants Who Do Not Accept Credit Card Payments in Their Shops, June 2017
3.4. Israel
Perceived Disadvantages of Online Shopping, incl. Payment-Related, in % of Internet Users, September 2016
Share of Adult Internet Users in Israel Who Use Mobile Wallet Apps to Purchase Goods or Services At Least Once a Month, in %, May 2017
3.5. Iran
Market Shares of the Top 3 Online Payment Gateway Operators, in %, December 2016
3.6. Qatar
Payment Methods Preferred in E-Commerce, in % of Online Shoppers, 2016
3.7. Kuwait
Breakdown of Payment Methods Preferred in Online Shopping, in % of Online Shoppers, 2016
3.8. Lebanon
Payment Methods Preferred in E-Commerce, in % of Online Shoppers, 2016
List of Selected Payment Providers, by Category, 2016
3.9. Bahrain
Barriers to Shopping Online, incl. Payment-Related, in % of Non-Online Shoppers, 2016
4. Africa
4.1. Regional
Number of Registered Mobile Money Accounts in Sub-Saharan Africa, in millions, December 2005 & December 2016
4.2. South Africa
Breakdown of Payment Methods Preferred in E-Commerce, in % of Online Shoppers, August 2017
Breakdown of Factors that Would Encourage to Shop Online More, incl. Payment-Related, in % of Online Shoppers, August 2017
Breakdown of Barriers to E-Commerce, incl. Payment-Related, in % of Internet Users Who Do Not Shop Online, August 2017
Breakdown of Types of Purchases for Which Non-Online Shoppers Would be Most Comfortable to Make Their First Online Payment, in % of Internet Users Who Do Not Shop Online, August 2017
Share of Online Shoppers Who Believe Their Credentials Are Not Safe When Shopping Online, in %, March 2017
4.3. Egypt
Top 3 Payment Methods Preferred in E-Commerce, in % of Online Shoppers, 2016
4.4. Nigeria
Number and Value of Internet (Web) and Mobile Payment Transactions, in millions and in NGN billion, 2011- 2016 & H1 2017
Breakdown of Experience with Mobile Money, in % Adults, 2016
Main Purposes of Using Mobile Money Services, in % Mobile Money Users, 2016
4.5. Kenya
Breakdown of Payment Methods Preferred in E-Commerce, in % of Online Shoppers, November 2016
Mobile Payment Statistics, incl. Number of Transactions, in millions, Value of Transactions, in KES billion, Number of Accounts, in millions, and Number of Agents, in thousands, 2008 – 2017

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