Middle East & Africa Online Payment Methods 2020 and COVID-19's Impact

Middle East & Africa Online Payment Methods 2020 and COVID-19’s Impact code:1480

OVERVIEW

TABLE OF CONTENTS

COMPANIES MENTIONED

Countries Covered: Egypt, Israel, Jordan, Kenya, Morocco, Nigeria, Oman, Saudi Arabia, South Africa, Tunisia, UAE

Pages: 93

Publication Date: 20/05/2020

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Questions Covered in the report:

What payment methods are preferred by online shoppers in the Middle East and Africa?
How does the COVID-19 pandemic influence the development of digital payments in this region and worldwide?
What are the top FinTech startups in the Middle East and Africa?
How fast are mobile money transactions growing in Kenya?
Which payment security measures are favored by the UAE’s digital buyers?

Key findings:

Middle East and Africa’s digital payments landscape transforms amid the outbreak

COVID-19 disrupts the dominance of cash payments in the Middle East & Africa

The top payment method used by consumers in the Middle East and Africa, both in-store and online, in 2019 was cash. Cash on delivery accounted for between one-half and two-thirds of E-Commerce transactions in countries such as Egypt, Morocco, and Saudi Arabia, according to the data cited in the yStats.com report. However, due to the coronavirus outbreak in Q1 2020, central banks, E-Commerce merchants, and payment companies across the region are encouraging consumers to use less cash and opt for e-payment means such as cards, digital wallets, and mobile money instead. As a result of these efforts, nearly two in three consumers surveyed in the UAE, Saudi Arabia, and South Africa in April 2020 reported transacting less with cash.

Contactless payments and mobile money on the rise

Among the top payment methods encountering strong growth during the pandemic are contactless cards and mobile wallets. However, due to the low financial account penetration in Africa, consumers on this continent are opting for alternative means to substitute cash, such as mobile money, the yStats.com report reveals. In 2019, Africa accounted for two-thirds of the world’s mobile money payment value. As of early 2020, the growth trend continued, as demonstrated by Kenya, where the number of mobile money accounts is now larger than the country’s total population.

African and Middle Eastern Fintechs attract investment

FinTech startups in Africa raised hundreds of millions of U.S. dollars during 2019 to help transform the payments landscape in the region and drive financial inclusion. The best-funded startups include Kenya’s Tala and Nigeria’s Interswitch and Opay. Furthermore, one of the leading payment providers in the Middle East, Network International, held an IPO on the London Stock Exchange in 2019 and its revenues rose at a double-digit rate.

1. Management Summary

2. Global Developments

COVID-19 Impact on Online & Mobile Payment, May 2020
The Impact of COVID-19 on Payments Revenues, incl. Payments Revenues in 2019, Pre-COVID-19 Forecast, and Payments Revenues Forecast Under The Impact of COVID-19, in USD billion, 2020
Post-COVID-19 Forecast for Digital Commerce & Payments Spending, in USD trillion, 2020f & 2021f Compared to 2019
Share of Respondents Who View Contactless as a Cleaner Way to Pay, in %, April 2020
Payment Methods Most Used When Shopping Online During The Pandemic, in % of Online Shoppers, by Selected Countries, April 2020
Payment Methods Used For the First Time When Shopping Online During The Pandemic, in % of Online Shoppers, by Selected Countries, April 2020
Criteria for Choosing a Payment Method in Online Shopping Which Became More Important Since The Pandemic Outbreak, in % of Online Shoppers, by Selected Countries, April 2020
Online & Mobile Payment Platform Revenues, in USD billion, 2019e & 2024f
Mobile & Online Remote Payment Value, in USD billion, by Selected Regions, 2024f
Mobile & Online Remote Payment Value, in USD billion, by Digital and Physical Goods, 2024f
Payment Methods Preferred in E-Commerce, in % of Online Shoppers, by Selected Regions, January 2019
Share of Online Shoppers Who Had Abandoned a Shopping Cart Due to Their Preferred Payment Method Not Being Offered, in %, January 2019
Share of Mobile Shoppers Who Had Abandoned a Shopping Cart Due to Their Preferred Payment Method Not Being Offered, in %, August 2019
Online Payment Fraud Losses, in USD million, by Segment, 2023f
Online Payment Fraud Prevention Software Spending, in USD billion, 2020f & 2024f
Number of Digital Wallet Users, in billions, 2019e & 2024f
Breakdown of Digital Wallets by Provider’s Main Industry, in %, 2019
Proximity Mobile Payment Users, in billions, and Penetration, in % of Smartphone Users, 2018 – 2023f
Value of Mobile Payment Transactions Authenticated via Biometrics, in USD billion, 2019e & 2024f
Overview of Mobile Money Statistics, incl. Number of Live Services, Registered Accounts, in millions, Active Accounts, in millions, Transaction Volume in millions, and Transaction Value, in USD billion, and Year-on-Year Growth, in %, by Region, 2019

3. Middle East & Africa

3.1. Regional

COVID-19 Impact on Online & Mobile Payment, May 2020
Attitudes to Contactless Payments During COVID-19 Outbreak, in % of Consumers, April 2020
Share of Adults Who Shopped for Products on New E-Commerce Websites Since COVID-19 Started, by Basics and Non-Basics, by Selected Countries, in %, April 2020
Share of Internet Users Who Have Food or Groceries Delivered to Their Homes More Frequently Due to COVID-19 Outbreak, by Selected Countries in MENA, March 2020
Share of Retail Banking Executives Who Believe That Cash Will Account for Less Than 5% of Transactions by 2025, in %, 2019
Top Factors Would Encourage Non-Online Shoppers to Purchase Online, in % of Non-Online Shoppers, 2019
Overview of Mobile Money Statistics in Africa, incl. Number of Live Services, Registered Accounts, in millions, Active Accounts, in millions, Transaction Volume in millions, and Transaction Value, in USD billion, and Year-on-Year Growth, in %, by Sub-Region, 2019
Number and Value of Transactions Processed by Network International Holdings, in millions and in USD billion, and Total Revenues, in USD million, 2016 – 2019
Overview of Selected Leading FinTech Startups in the Payments Sector in MENA, incl. Company Name, Solution, Funding, Country and Year Established, September 2019
Total Investment Raised by African FinTechs, in USD million, 2018 & 2019
Overview of Selected Major FinTech Funding Rounds in Africa, by Country, 2019

4. Middle East

4.1. UAE

E-Commerce Payments Value, in AED billion, 2017-2022f
Breakdown of E-Commerce Transactions by Payment Methods, in %, August 2019
Breakdown of Preferred Payment Authentication Measures When Shopping Online, in %, February 2019
Digital Wallet Awareness, Ownership & Usage, in % of Online Payment Users, February 2019
Security Concerns Regarding Digital Wallets, in % of Online Payment Users, February 2019
Share of Online Shoppers Who Prefer Cash on Delivery, But Would Pay by Card of a mPOS Machine Was Available Upon Delivery, in %, February 2019
Attitudes to Contactless Payments During COVID-19 Outbreak, in %, April 2020

4.2. Saudi Arabia

Breakdown of E-Commerce Transactions by Payment Methods, in %, August 2019
Payment Methods Used in E-Commerce, in % of Online Shoppers, 2019
Payment Methods Used in E-Commerce, in % of Online Shoppers, by Gender, 2019
Payment Methods Used in E-Commerce, in % of Online Shoppers, by Saudi and Non-Saudi and by Gender, 2019

4.3. Israel

Breakdown of E-Commerce Transactions by Payment Methods, in %, August 2019
Share of Respondents Who Are Using Less Cash Since Adopting Mobile Payment Apps, in %, 2019
Products and Services Paid for via Mobile Apps, in % of Respondents, 2018 & 2019

4.4. Jordan

Share of Online Shoppers Paying by Cash on Delivery, in %, H2 2019
Mobile Payment Transaction Value, in JOD million, and Number of Transactions, in thousands, January 2019 – December 2019
Breakdown of Mobile Payment Transactions by Type, by Number and Value, in %, December 2019

4.5. Oman

Share of Online Shoppers Paying Online For Their E-Commerce Purchases, in %, 2019

5. Africa

5.1. South Africa

Breakdown of E-Commerce Transactions by Payment Methods, in %, August 2019
Breakdown of Payment Methods Used in E-Commerce, in % of Online Shoppers, March 2020
Payment Methods Preferred in E-Commerce, in % of Internet Users, July 2019

5.2. Egypt

Breakdown of E-Commerce Transactions by Payment Methods, in %, August 2019
Share of Online Shoppers Paying Online For Their E-Commerce Purchases, in %, 2019
Number of Meeza Cards Issued, in millions, July 2019, September 2019 & December 2019
Number of Mobile Wallet Accounts, in millions, Year-On-Year Growth Rate, in %, Unique Users, in millions, and Breakdown of Users by Gender and Age Group, in %, February 2019

5.3. Nigeria

Breakdown of E-Commerce Transactions by Payment Methods, in %, August 2019
Electronic Payment Transactions, incl. Number, in millions, and Value, in NGN billion, by Type, 2019

5.4. Morocco

Breakdown of E-Commerce Transactions by Payment Methods, in %, August 2019
Number of Online Payment Transactions, in millions, and Value, in MAD million, by Transactions with Moroccan Cards, Foreign Cards and Total, 2016 – 2019

5.5. Kenya

Breakdown of E-Commerce Transactions by Payment Methods, in %, August 2019
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, 2014 – 2019 & Q1 2020
Financial Account Penetration, by Type, in % of Adults, 2019

5.6. Tunisia

Share of Online Shoppers Paying Online For Their E-Commerce Purchases, in %, 2019

Interswitch Ltd
Jumia Technologies AG
Network International Holdings Plc
Noon AD Holdings
Opay
PalmPay Technology Co Ltd
Paytabs
Safaricom Plc
Visa Inc.

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