Mena Report 2020

ABOUT US
The leading connected

payments platform in the
Middle East, North Africa
and Pakistan
Checkout.com empowers businesses to adapt, innovate, and thrive with the connected payments
they deserve.
The company’s easy-to-implement technology makes payments seamless. They provide the fastest,
most reliable payments in more than 150 currencies, with in-country acquiring, world-class fraud
filters and reporting, through one API. And they can accept all major international credit and debit
cards, as well as popular local payment methods, including Fawry, mada, QPay and more. Plus their
strong local presence and deep understanding of the regional payments ecosystem, makes
Checkout.com the market leader across the Middle East, North Africa and Pakistan. Since 2019,
the powerful payments platform has processed more than 400 million ecommerce transactions in
the region. Checkout.com launched in 2012 and now has a team of 900 people across 14 offices
worldwide, offering local expertise where it’s needed.
Find out more at www.checkout.com
MASTHEAD CHECKOUT.COM YOUGOV

Julie Scrase, Editorial Director of Insights and Research YouGov is an international research data and analytics
Kasey Ly, VP Brand Design group headquartered in London. The firm’s data-led offering
supports and improves a wide spectrum of marketing
This report was developed by Checkout.com in partnership activities of a customer-base including media owners, brands
with YouGov and originally published July 2020. The report and media agencies. They work with some of the world’s
was written by Julie Scrase, Editorial Director of Insights and most recognized brands.
Research for Checkout.com.
YouGov’s suite of data solutions includes YouGov BrandIndex,
YouGov Profiles, YouGov Omnibus and YouGov Custom
Research.
With a proprietary panel of over 9+ million people globally

and operations in the UK, North America, Mainland Europe,
the Nordics, the Middle East and Asia Pacific, YouGov has
one of the world’s largest research networks. YouGov data is
regularly referenced by the press worldwide and we are the
most quoted market research source in the UK.
2
CONNECTED PAYMENTS: SEIZING OPPORTUNITY IN MENA AND PAKISTAN
ABOUT US
400 million ecommerce transactions processed since 2019.

Leading global brands thrive in MENAP with Checkout.com.
3
LEADING VOICES
Leading
voices HADI RAAD, VICE PRESIDENT OF DIGITAL GAURANG SHAH, SENIOR VICE PRESIDENT,
SOLUTIONS – CEMEA AT VISA PRODUCT MANAGEMENT, DIGITAL PAYMENTS
Visa is a global card scheme and payments & LABS - MIDDLE EAST AND AFRICA AT
technology company working to enable MASTERCARD
consumers, businesses, banks and Mastercard is a global card scheme and
governments to use digital currency. payments technology company dedicated
to the power of a world beyond cash which
EMRE TALAY, DIRECTOR OF GLOBAL supports people and businesses.
PAYMENT OPERATIONS AT DELIVERY HERO
Delivery Hero is a global, online food delivery MUZZAMMIL AHUSSAIN, EVP CONSUMER
service based in Germany. Since 2011, Delivery TRAVEL AT SEERA GROUP
Hero has partnered with over 500,000 Seera Group, formerly known as AlTayyar
restaurants in more than 40 countries across Travel Group is a 1979-founded travel
Europe, MENA, LatAm and APAC. conglomerate based in the Kingdom of Suadi
Arabia (KSA) and owns many well known local
ARJUN SINGH, EVP GROUP HEAD FOR CARDS and global brands including Saudi Company
AND PAYMENTS AT AL-FUTTAIM GROUP for Transportation United, Elegant Resorts,
Founded in 1930 and headquartered in the UAE, Nile Holidays, B2B Travel Group S.L. and
Al-Futtaim Group is a large conglomerate many others.
operating eight divisions comprising
automotive, electronics, insurance, services, JELENA TUSTIC, DIGITAL OPERATIONS AND
real estate, retail, industries, and overseas. EPAYMENTS AT CHALHOUB GROUP
Founded in Syria in 1955, Chalhoub Group, is
RED BAMBA, DIGITAL PAYMENTS MANAGER now the largest retail operator in the Middle
AT ALSHAYA GROUP East. A privately-held luxury goods retailer and
Founded in 1890 and headquartered in Kuwait, distributor is now headquartered in the UAE.
Alshaya Group is a multinational retail franchise
operator with over 90 brands across MENA, JAYESH PATEL, HEAD OF LIV. DIGITAL BANK
Europe and Russia. Originally launched in 2017 by Emirates NBD
in the UAE, Liv.Digital Bank was aimed at
MUNEEB MAAYR, CEO AND FOUNDER AT BYKEA millennials, the first of its kind in the region,
Bykea is Pakistan’s leading ride-hale, vehicle with the aim of disrupting traditional banking
hire and parcel delivery app. Bykea enables a with a simple and user friendly digital app.
crowdsourced network of motorbike owners
to transport people, parcels and payments SUNIL JOHN, PRESIDENT FOR THE
within a city. MIDDLE EAST AT BCW AND FOUNDER OF
ASDA’A BCW
SHAYAAN TAHIR, CEO AND FOUNDER OF ASDA’A BCW is the leading public relations
HOMESHOPPING.PK consultancy in the Middle East and North
Homeshopping.pk is Pakistan’s first and Africa (MENA) region which produces the
largest ecommerce marketplace platform. The highly regarded and publicized annual Arab
organization has been operating since 2008. Youth Survey.
4
FOREWORD
Foreword
At Checkout.com we’re empowering the most new insights, from a plethora of perspectives,
forward-thinking businesses to do what they reflects Checkout.com’s commitment to rigor,
do, better, by unlocking more value in every innovative partnerships and un-siloed thinking.
transaction. Everywhere. If, as seems clear, COVID-19 is a catalyst for
huge change in payments and ecommerce in
We’ve spent years building the best technology MENAP, then this report seeks to lay the
to do this in a way which truly flexes to the roadmap for that change. The region moves
unique demands and DNA of each and every fast and we’re committed to supporting that
merchant business we serve. In the Middle East, movement and change on behalf of our
Sebastian Reis North Africa and Pakistan (MENAP) it has been, merchants and their customers.
EVP of Global and continues to be, our privilege to do just
Ecommerce that for many inspiring and complex businesses Ways of doing business and ways of life are
with big ambitions. pivoting around this revolution in digital
payments. At Checkout.com we’re cutting
And we’re excited to be able to share this through banking’s complexity so all businesses
experience and expertise. But perhaps even are empowered to change the world; this
more pressingly, 2020 represents a very takes a very clear and inspiring meaning in
significant moment in time for payments and MENAP today.
ecommerce throughout MENAP. With many
traditionally cash-centric countries converting
to high rates of digital payments overnight, the
pandemic has spurred something little short Growth in times of Crisis:
of a payments revolution. And we’ve sought Checkout.com’s MENA and Pakistan
to capture that moment, and imbue it with Covid-19 data in numbers
actionable insight and foresight as we speed
ever faster, ever forward. Between March and September an
unprecedented number of merchants
Our research features merchant case studies turned online to serve their customers,
from this new epoch-defining year, revealing with Checkout.com seeing:
exactly what it takes to pivot to digital
1000+
payments at pace and at scale. We’re honoured
to be able to feature exclusive stories from a
variety of impressive, progressive merchants
with first-hand knowledge of what it takes to new inquiries for merchants
turn payments into a strategic advantage in this shifting online
complex region.
We’re equally excited to have worked with our

highly valued partners — Visa, Mastercard, the
86%
growth in volume YoY throughout
internationally trusted pollsters, YouGov, and the region
the publishers of the globally respected and
much cited Arab Youth Survey. The range of
5
AT A G L A N C E
“
Apps are
where it’s at
“One of the biggest developments 45% of online consumers across
MENAP prefer to purchase products
we’ve seen during COVID-19 or services via an app. Many have
bypassed traditional ecommerce
was the increased adoption of on a laptop or desktop and shop
predominantly through mobile and
contactless payments, specifically social media channels.
Apple Pay, as an increasingly

preferred method.”
Muzzammil Ahussain
EVP Consumer Travel at Seera Group
45%
of consumers are already shopping
online significantly more than ever,
due to the pandemic. And half of
People do trust digital

consumers in MENAP anticipate
that they’ll be shopping online
payments
even more next year regardless
of further lockdowns. Merchants
also note a dramatic rise in digital
payments as well as in card saved
81% of respondents say they trust the safety and security of on file, suggesting increased long-
online payments, suggesting a meaningful and positive shift term intent.
in sentiment towards digital payments.
86%
Payment volumes in MENAP are way up
since the pandemic — Checkout.com has
seen a volume increase of nearly 86%
YoY in MENAP for 2020 so far.
“Because there are not that many payment options in the region,
we created marketing incentives by collaborating with our
schemes and bank partners to encourage users to change the
behavior toward online payments.
Emre Talay,
Director of Global Payment Operations at Delivery Hero
6
EXECUTIVE SUMMARY
Executive
summary
OUR APPROACH TO THE RESEARCH COVID-19 IS A CATALYST FOR MAJOR

CHANGE AND INNOVATION ACROSS MENAP
Checkout.com worked with leading players
across the region, including Al-Futtaim Group, Change is coming to stay: 45% of consumers
Seera Group, Chalhoub Group, Delivery across MENAP say they’ve been shopping
Hero, Bykea, Alshaya Group, Liv.Digital online more frequently since the COVID-19
Bank, Homeshopping.pk, Mastercard and pandemic started, and, 47% anticipate that
Visa to share local insights and expertise. We they’ll be doing so even more next year.
also partnered with YouGov to speak to over Merchants also note a rise in cards saved on
5100 consumers, reflective of the region’s file, suggesting increased long-term intent.
demographics, about their behaviors and
views on digital payments and ecommerce. Payment volumes are up since the pandemic:
Taking a 360-degree view across consumers, Checkout.com has seen a volume increase of
merchants, schemes and payments providers, nearly 86% YoY in MENAP for 2020.
this report provides up-to-the-minute insights,
and insider advice on how to ensure payments Opportunity is starting to convert: While 64%
are powerfully connecting the dots between of MENAP consumers prefer not to pay for
consumers, brands and services across an ecommerce with cash, cash-on-delivery (CoD)
enormously diverse region. This research is still preferred by 36% of consumers across
takes a particularly close look at the UAE, the region, representing considerable untapped
KSA, Kuwait, Qatar, Bahrain, Egypt, Jordan opportunity. Government initiatives, coupled
and Pakistan. This geographic reach across with the hygiene concerns around cash, mean
the Middle East, North Africa and Pakistan is that merchants are noticing a definite and
referred to as MENAP throughout this report. consistent move away from CoD to PoS and
What emerges clearly from the research is that online payments.
this region represents a huge opportunity for
digital commerce. We refer to ecommerce as a Merchants are pivoting to digital — and fast!
broad term to cover all commerce conducted Since the start of the pandemic Checkout.com
digitally, in-app and online, unless otherwise have seen over 1000 new merchant enquiries
specified. mCommerce refers specifically to for the MENAP region. Merchants of all sizes
all mobile shopping and sCommerce refers have had to move fast to maintain business and
specifically to buying on social apps. keep their customers.
7
EXECUTIVE SUMMARY
Merchants need to foster delivery confidence: The region’s vast Arab youth population are
Merchants need to encourage the psychological subscription-natives: 62% subscribe to online
shift away from CoD by building trust that they music streaming services and 53% subscribe to
deliver and honor easy returns and exchange online video streaming services. Much of this is
policies. Merchants are actively supporting the aided by high ownership of mobile devices.
move away from cash.
PAYMENTS OPTIMIZATION, LOCALIZATION
People do trust digital payments: 81% of AND GROWTH IS A CHALLENGE FOR
respondents say they trust the safety and MERCHANTS IN MENAP
security of online payments. Cash preferences
correlate much more strongly with socio- With a complex payment method landscape
economic insecurity than with any distrust in and rapidly changing online behavior,
digital payments security. authorization rates can be a challenge: 21% of
consumers in the region have experienced a
SOCIAL COMMERCE AND MOBILE APPS ARE false decline, compared with 14% in the US.
THE FUTURE OF DIGITAL RETAIL IN MENAP
Consumers have a low tolerance for failed
Apps are where it’s at: 45% of online payments: MENAP consumers are 20% less
consumers across MENAP prefer to purchase likely to retry following a failed payment
products or services via an app. Many have vs. peers in Europe and the US, which is an
bypassed traditional ecommerce on a laptop additional incentive for merchants to drive
or desktop and shop predominantly through down their false decline rates.
mobile devices and channels.
No one-size-fits-all for merchants looking
Social shopping is set to soar: 14% of online for growth in MENAP: Even as the region
consumers in MENAP are most likely to shop on matures payments remain idiosyncratic in
social apps and shoppable adverts. Merchants each country. Culture, regulation, currencies,
and other payments players anticipate infrastructure and payment methods vary
continuous growth in sCommerce. significantly. Merchants are looking for payments
support which encompasses all of this nuance
Speed is a powerful incentive for ecommerce: while making payments easy and scalable.
48% of consumers say the top reason they
shop online is that it saves them time. 35% Payments data is gaining currency with
say the safety and speed of digital payments merchants: Progressive merchants are
specifically is their top reason for shopping partnering with progressive PSPs to build
online. powerful use cases for transaction data. All
merchants, need to utilize their transaction
Remittances apps are the most commonly data for a granular understanding of consumer
used fintech apps: 40% of MENAP consumers behavior, but nowhere more so than in MENAP.
send money abroad through remittances apps, Yet 41% of merchants do not receive viable data
while 45% use apps for domestic P2P transfers. on their transactions from providers.
8
INTRODUCTION TO MENAP
MENAP:
Lands of opportunity
MENAP is a fast-evolving market with vast There’s also a growing acceptance of mobile
scope for optimizing payments, driving up commerce. In the past, consumers would
returns for merchants and experience for research on the phone and then open a laptop
consumers: 78% of consumers surveyed or visit a store to purchase. Now they’re
consider themselves to be reasonably increasingly ordering straight from their
frequent or very frequent online shoppers. phones; it’s a cultural shift that is playing out.
47% anticipate that they will become even
more frequent online shoppers in 2021.
The remaining untapped market is mostly

young and full of potential when properly UAE residents are among the
understood and seen in the context of its strong top 10 globally when it comes
internet and mobile device penetration. Indeed, to spending time on the internet
mobile penetration across the region is very
high, and even by 2015, 95% of the population and social media on any device,
were using the internet, with 19 million mobile averaging 7 hours and
subscriptions by 2017, amounting to 211 54 minutes daily.
subscriptions per 100 inhabitants. In particular,
UAE residents are among the top 10 globally
when it comes to spending time on the internet
and social media on any device, averaging
78%
7 hours and 54 minutes daily.
Add to this a combination of new government of consumers surveyed

and regulatory effort and ambition, along with a consider themselves to be frequent
youthful, highly digitally literate population, and online shoppers. 47% anticipate that
diversifying economies (away from oil focus) as they will become even more frequent
well as the current forces of the pandemic, and online shoppers in 2021.
we see a market palpably on the cusp of some
significant changes and growth.
9
Mohammed Ali Yusuf (Mo)

VP MENAP, Checkout.com

In recent years we’ve observed some powerful shifts taking place in MENAP’s ecommerce and
payments ecosystem. My top 5 high-impact trends are:
1. Ecommerce and digital lifestyle and challenging the likes of Amazon and
acceleration: Ecommerce in the MENAP Alibaba in some instances. There’s also
region is among the fastest growing in lots of innovation happening, driven by
the world, fueled by a transformation of the emergence of technology talent and
society centered around the convenience freelancers working in the region.
and value-add of digital commerce. A
population of 300m young, digital and 4. Progressive regulators: The region’s
social savvy customers who are mobile regulators are supportive of fintech
centric, have a preference for digital and and payments innovation, look to drive
live in a global ecosystem. digital payment adoption and encourage
collaboration and fair competition.
2. Subscription and platformization of
retail: Businesses continue to innovate, 5. Governments have been getting onboard:
consolidate and remove friction by As governments look to foster innovation
introducing all-encompassing platforms and diversify their economies, they see
that offer easy and frictionless payments how digital payments can be a powerful
from car-fueling to grocery to food- vehicle for economic progress. For
delivery. example, Saudi Arabia and the UAE are
preparing to launch real-time payments
3. A region of challengers: We’re seeing a infrastructures in the next year or two with
rapid maturing of domestic merchants the clear objective of supporting
who are serving the long tail of ecommerce economic growth.
GCC ARE THE HIGHEST FREQUENCY ONLINE SHOPPERS

The frequency with which consumers buy products or services online as (%) of population
(Source: Checkout.com survey October 2020)
Daily Weekly Monthly A few times a year Once a year or less frequently Never
35
30
25
20
15
10
5
0
GCC Jordan Egypt Pakistan
10
200m
MENAP’s 200 million young population is
now the region’s largest demographic .
Source: Population Reference Bureau 2020
Visa’s top 5 long term digital

payments trends in MENAP:
1. Rise of ecommerce: Ecommerce activity 4. SME merchants are growing online: We’ve
and penetration across verticals has been recently witnessed significant growth in
increasing as more segments have begun SMEs offering services and goods online.
offering online services (government, In addition, the increased support offered
telecoms, retail, F&B, etc.), there have by governments to the SME sector has
been significant development of delivery reduced barriers to entry for SMEs to set up
services (logistics), and more consumers online businesses.
are getting comfortable with ecommerce.
5. Digital payments acceleration: Consumers
2. Proliferation of digital on-demand and are being offered greater convenience,
subscription services: Businesses such more customized experiences, and more
as Careem, Cafu, Farmbox and more are flexible payment options. Payment options
reinventing commerce from a traditional such as “pay” buttons and Visa’s Click
face-to-face to digital experiences. These to Pay remove a key friction point in the
are typically based on ‘set and forget’ customer shopping experience, with faster
payment models with credentials on file and more secure checkout continuing to
enabling seamless customer experience. drive eCommerce sales.
3. Cash-on-delivery (CoD) displacement:

CoD has constituted the majority of
ecommerce sales since the advent of
ecommerce in the MENAP region. However,
this has seen a steadfast decline over
recent years, as more consumers are able
to access financial services, have increased
trust in digital payments, and are being
offered alternative payment options by Hadi Raad
online merchants. VP of Digital Solutions – CEMEA at Visa
11
GO LOCAL & GO DEEP
Go local &
go deep
Payments in MENAP can’t succeed with a
one-size-fits-all approach
A COMPLEX PAYMENTS LANDSCAPE “In MENAP, the key markets for us at Al-Futtaim
include UAE, Saudi Arabia and Egypt, among
Understanding the depth and breadth of this others and there is nuance to be found across
region’s heterogeneity is the key to success all of them,” says Ajrun Singh, EVP Group Head
here. Across and within MENAP countries, for Cards and Payments at Al-Futtaim Group.
demographic diversity has a direct impact on
ecommerce, mobile commerce and digital “They’re all different in terms of population size,
payments preferences and behaviors. nationality mix, adoption of electronic formats
of payments, income demographics, strategies
The granular data shows that co-existing being adopted by Bank and NBFCs (Non-
nationalities and expat communities across the Banking Financial Company) and of course, the
GCC, in particular, have distinct online purchasing regulation, to name only a few.”
behaviors and habits. The demographic nuances
of the MENAP consumer base, at the very
grassroots level, which differ by wealth, religion,
nationality or expat status, as well of course as
gender and age, all have a bearing on how the Don’t under-estimate the local
customer pays and shops online. competition. They have access,
But it’s not simply demographic, cultural and relationships and knowledge
behavioral nuance which makes the region which takes time to build.
so diverse and potentially complex. Crucially,
payment methods completely vary per country Asked for his advice on the optimum strategy
and local payment methods are often king. for merchants preparing to enter, or grow,
Regulations and payments infrastructure vary within the region, Muzzammil Ahussain, EVP of
per country too — whichever way you look Consumer Travel at Seera Group, says:
at it, there can be no one-size-fits-all. “Go local! Having access to local payment
methods such as mada in KSA, KNET in Kuwait
Moreover, MENAP is a payments landscape that or Benefit in Bahrain will be a gateway to
demands the ability to operate with multiple customer loyalty and acquisition. For example,
currencies within and across borders. This over 40% of KSA payments are processed
means that MENAP-based merchants looking to through mada cards, and over 80% in Kuwait
expand within the region commonly face very are processed through KNET. So not offering
similar challenges to those entering the region these methods will be a block to gaining
from the outside. market share.”
12
GO LOCAL & GO DEEP
Al-Futtaim Group’s Singh adds, by way of For us, the support of a good PSP has been
advice: “Don’t under-estimate the local a game-changer as we seek to aggressively
competition. They have access, relationships expand into new countries in only six months.”
and knowledge which takes time to build.
And any international player entering must As Jelena Tustic, who manages Digital
fully commit to these markets (even if through Operations and ePayments at Chalhoub
partners) and not adopt a ‘seagull’ mentality.” Group, points out: “There are markets within
the region that are largely operating with
Referring to his own best practice, Singh payments solutions that are quite rigid,
emphasizes the need to “take a bottom- not user-friendly and are multi-platformed,
up approach to each market by better sometimes without the possibility of smooth
understanding the needs of the customers and integration with our systems. This can be quite
specific brands” and not to expect any kind of painful not only to customers but also to our
one-size-fits-all in MENAP. customer service agents.
“Wherever there are synergies in terms of Moreover, timeliness and the speed of
doing the same thing or partnering with the execution has lots of room for improvement
same organizations we do try to join the dots,” with these regional players. Such complexities
he says, “but we don’t obsess over those, and clunkiness can create bottlenecks
because local partners are often stronger in and cause delays in our project timelines.”
certain markets versus others and so we do Alshaya’s Bamba agrees that the local payments
better to pick and mix accordingly. We have ecosystem poses a challenge: “One of the
to be pragmatic.” biggest challenges, for a company with
customer-centricity at its core, is the legacy
systems within the region’s payments ecosystem
Having APIs, smooth integrations ready with all that are not very customer friendly.”
digital payment methods supported, and a readiness
Bamba continues, “To solve this we try to
to implement new payment methods that are improve these experiences by optimizing the
growing fast is the key to a good payments partner areas that we do have control over. These
in this region. include unifying our payment platforms with
the help of a progressive PSP, continuously
improving our checkout journey and taking
STRONG PAYMENTS PARTNERSHIPS on more risk to minimize extra steps along the
ARE CRITICAL customer’s payment journey.”
In such a fragmented environment cohesion “Having APIs, smooth integrations ready with
and collaboration between the right parties all digital payment methods supported, and a
is key. Local relationships and locally savvy readiness to implement new payment methods
payments partners are crucial to success in that are growing fast is the key to a good payments
MENAP. Merchants are understandably risk- partner in this region,” adds Chalhoub’s Tustic.
averse in their payments partnerships and are “In fact, it’s critical. Each day that our brands
looking to go with tried and tested players who don’t have an online presence, or that a
are genuinely familiar with local nuances. payment method is not supported, or we suffer
downtime is alienating customers and creates
A partner with in-depth knowledge in one country losses for the business.”
may not have equal expertise within another and
this fragmented approach can make broader Emre Talay, Director of Global Payment
regional growth and integration a challenge. Operations at Delivery Hero is equally
emphatic about the risks associated with
Red Bamba, Digital Payments Manager at limited payments options in MENAP countries.
Alshaya puts it in no uncertain terms: “Find He describes how he worked to address the
the right payment service provider. See them risk: “Because there are not that many
not just as another vendor, but as a strategic payment options in the region, we created
business partner. They will be instrumental in marketing incentives by collaborating with
launching in the MENAP market successfully. our schemes and bank partners to encourage
13
GO LOCAL & GO DEEP
users to change the behavior towards online investing in and supporting the expansion of
payments.” digital economies.
Like Tustic, Talay is clear on the significant harms Liv.Digital Bank’s Head, Jayesh Patel,
of payments downtime: “Having 24/7 uptime is the demonstrates just how multilaterally productive
fundamental requirement of the payment system these ecosystem partnerships can be. “As a
regardless of the volume, especially in a business digital lifestyle bank, Liv. has been able to go
like Delivery Hero with 100% YoY growth. We beyond banking,” he says.
designed our system to operate on that scale to
avoid harming the customer experience.” “Customers can now get easy access to deals
and discounts, as well as curated daily content
There are a myriad of other ways that partners and news. All of this was made possible with
can and should support merchants in MENAP, the help of our ecosystem partners. And during
as Talay points out: “Payments is a hyperlocal these difficult pandemic times, we have been
business and this complexity is always the able to support and promote our ecommerce
challenge for international companies. partners too, some of whom have seen 300%
Different integration flows, user experiences, growth in their business. Tapping into newer
reconciliation files, authentication layers, ways to engage with both our customers and
chargeback liabilities and fraud levels, all our partners has helped us grow at a rapid pace
need to be taken into account,” he says. despite the on-going pandemic.”
“Consolidating each aspect can be quite
tough; however, it’s required to offer a better “Our pan-ecosystem partnerships have been
experience to the customer in order to optimize instrumental in driving marketing and innovation
the conversion,” adds Delivery Hero’s Talay. efforts for merchants and are a perfect exemple
of the vital role of great relationships in the
Find the right payment service provider. See them region,” says Arjun Singh, EVP Group Head of
Cards and Payments at Al-Futtaim.
not just as another vendor, but as a strategic business
partner. They will be instrumental in launching in the “We have one of the most successful Retail
MENAP market successfully. co-branded credit card programs with a
leading bank in the UAE and we have launched
multiple prepaid programs (both open and
Taking local and cross-border payments in a closed-loop) across our retail, automotive,
region where payment methods are highly and mall brands,” adds Singh. ”And in the
localized raises a number of questions and automotive segment, we launched a first of
challenges for merchants: “What is the its kind prepaid product in the region which
security of that given payment method? Is it allows us to provide discounts on any car sold
considered legitimate? These are important on a Prepaid Card which is a Toyota and Lexus
questions,” says Ahussain at Seera Group, co-brand with Mastercard. The customer still
”because the better my payment methods, gets the monetary benefit and the freedom
the better my ‘ratings’ as a good merchant to spend anywhere, but for us, it has given an
and the lower my security deposit on the opportunity to bring a percentage of the value
bank side, which ultimately affects my cash back into the group and to learn more about
flow and treasury too.” the consumer’s spending habits.”
Partnerships are also becoming increasingly Optimization, then, requires that merchants
creative, with both parties exploring new are equipped to provide the local payment
opportunities to improve customer experience methods which will capture the optimum
while driving up returns for the merchant. market share based on the preferred methods
“Payments is about building cross-market of their MENAP customers in each country.
ecosystems” says Hadi Raad, Vice President of This also requires expert payments partners
Digital Solutions CEMEA at Visa. “This is driven who can help to simplify onboarding and
by collaboration amongst critical players – integration for merchants looking to succeed
banks, payment networks, ecommerce in each country across the region, at speed.
platforms and government agencies to drive In addition, it’s crucial that merchants and
change. Governments have been increasingly their partners have a close and detailed
14
GO LOCAL & GO DEEP
understanding of how each payment method engaging with the issuer banks to improve the
performs in terms of authorization rates in acceptance rates here.”
every country.
“A blind spot that has a negative impact on
OPTIMIZING AUTHORIZATION RATES acceptance rates and therefore a financial
impact are declines with generic error
Of the consumers surveyed in MENAP, 21% say messages,” says Arjun Singh at Al-Futtaim
they have experienced a false decline at least Group. “On the customer side, these can be
once. This compares with 14% of a same-sized frustrating and hinder a second or third attempt
sample from across the UK, France, Germany because the decline is not further explained.”
and the US. Yet only 33% of MENAP consumers
are willing to retry following a false decline, “We have worked towards a solution to this
which compares with an overall total of 52% problem by providing customers with more
across the UK, France, Germany and the US defined action points post decline of a
who would be willing to do so. transaction, such as ‘use a different card’ or
‘your card has not been activated for online
One of the biggest challenges, for a company with purchases,’ which helps us retain customers
customer-centricity at its core, is the legacy systems and support them in trying again.”
within the region’s payments ecosystem that are not Checkout.com data shows that beyond
very customer friendly. insufficient funds, common decline reasons in
the region come down to format error or failed
Emre Talay at Delivery Hero points out that as 3DS authentication. However, it is precisely this
more people move to online payments, there kind of data that our research tells us is sorely
can be ‘growing pains’ in the process: “During lacking for many merchants.
the COVID-19 influx, we have seen a spike in According to a survey of 1,500 merchants
the error code ‘online payment disabled.’ We conducted by Checkout.com, in partnership
know this is largely down to legitimate older with Oxford Economics, in May 2020, 65%
users who still lack tech skills. I believe this is of merchants say they don’t receive detailed
one area where PSPs can create a difference by response codes on failed payments.
CHECKOUT.COM LOCAL PAYMENT METHODS INTEGRATION CHECKLIST
Country Card schemes supported Payment methods supported
UAE Visa / Mastercard / American Express Apple Pay / Google Pay / PayPal
KSA Visa / Mastercard / American Express mada / Apple Pay / Google Pay / PayPal
Qatar Visa / Mastercard / American Express QPay / PayPal / Google Pay
Bahrain Visa / Mastercard / American Express Benefit Pay / PayPal / Google Pay
Oman Visa / Mastercard / American Express Omannet / PayPal / Google Pay
Egypt Visa / Mastercard / American Express Fawry / Meeza / PayPal / Google Pay
Kuwait Visa / Mastercard / American Express KNET / Google Pay / PayPal
Pakistan Visa / Mastercard / American Express PayPal
Note: PayPal does not currently support local currencies, so transactions would be in other currencies such as USD, GBP or other non-MENAP currencies which it can support.
15
GO LOCAL & GO DEEP
To provide customers with the support needed and iterate their own performance. While this
to encourage successful retries, merchants is true for all merchants globally, it’s perhaps
must start by ensuring that they’re not in the especially so for those operating in the MENAP.
dark themselves.
With such complexity of integration and
Merchants in MENAP need to feel confident that regulation and such an incredibly nuanced and
they have easy and efficient access to quality diverse local potential customer base, robust
data which flows seamlessly into their own in- transaction data is key. Without it, the huge
house systems and provides actionable insights effort taken to establish a presence and invest
which can inform corporate strategy across in payments in the region can quickly
siloes within the business. be wasted.
3DS GROWS IN MENAP, DRIVING DOWN Checkout.com’s research shows that 41% of
CHARGEBACK LIABILITIES merchants say they are not receiving actionable
data and analytics on their payments.
While 3Ds is a required standard for domestic Progressive local merchants are paving the way
payment method such as mada in KSA, for how powerful partnerships with the right
Checkout.com has seen significant growth PSPs and issuers can revolutionize the access
in successful 3DS implementation across the to and application of transaction data.
region in 2020 compared with 2019.
“We have worked closely with both with
The implications for merchants operating in our issuer partners, and PSPs, to build a
the region are positive as they face reduced data analytics portal with machine learning
liabilities for chargebacks and fraud. capabilities; aggregate data, enrich data
Checkout.com is also prepared to support with other sources and produce descriptive
3DS2.0, which will come into play in 2021. analytics,” says Arjun Singh at Al-Futtaim Group.
“We’re also increasingly working on Diagnostic
DATA IS KING Analytics and Predictive Analytics. We have a
saying in our business: If data is the new oil,
Ultimately, to drive optimization, merchants then payments data is the new extra virgin
require excellent data to manage, measure olive oil!”
CARDS BEGIN TO DOMINATE OVER CASH

Preferred payment as (%) of population (Source: Checkout.com survey October 2020)
PayPal, ApplePay, GooglePay or other digital Wallet Debit card, credit card, or pre-paid card Bank transfer Cash-on-delivery
70
60
50
40
30
20
10
0
Bahrain Egypt Jordan Kuwait Qatar KSA UAE Pakistan
16
GO LOCAL & GO DEEP
“
3DS IN MENAP SEES HUGE YOY GROWTH IN 2020 (Source: Checkout.com 2020)
Egypt 326%
A blind spot that has a negative
KSA 272%
impact on acceptance rates,
Bahrain 583% and therefore a financial
impact, are declines with
Kuwait 270% generic error messages. On the
customer side, these can be
Pakistan 260%
frustrating and hinder a second
Qatar 40% or third attempt because the
decline is not further explained.
Jordan 576%
UAE 80%
10%
of transaction decline reasons
60%
of merchants do not receive detailed
21%
of MENAP consumers have
are given as ‘format error’ response codes on failed payments suffered a false decline
KNOW YOUR FAILURE? MOST COMMON REASONS FOR TRANSACTION DECLINES GIVEN IN THE
MENAP REGION AS ISSUING COUNTRIES IN AGGREGATE 2020 (Source: Checkout.com 2020)
Insufficient
35%
funds
Declined - do not honor 20%
Format error 10%
Cardholder failed 3D authentication 7%
Transaction not permitted to cardholder 5%
Expired card 2%
Invalid card number 2%
Restricted card 1%
Pick up card no fraud 1%
Lost card - pick up 1%
17
GO LOCAL & GO DEEP
Choosing your PSP for growth

and optimization in MENAP
When choosing a payments partner who can support your ambition, provide
strategic advice and facilitate growth at pace, it is important to choose a
partner who can provide the following:
• Depth and breadth of coverage for local • A unified payment solution allowing you to
schemes and payment methods use the same platform for the entire region
for all APMs and helping you to scale when
• Full coverage for multi-currency needs your business will be ready to go behind
the regional boundaries
• Deep understanding of regional payments
ecosystem and the local merchant landscape • Embedded partnerships ethos via local
teams and high service levels
• Ability to deliver strong, transparent data
allowing you to make data driven decisions • Ability to build bespoke, frictionless
powered by transparent view of every customer experience at pace
transaction in every market
• A range of tools for managing all aspects
• Modularity which allows you to implement of risk across all local fraud and regulatory
your solution, your way and enhance it as compliance standards and according to
you grow local and industry specific behaviors
• Technical excellence and robust APIs To learn more, visit Checkout.com

for easy implementation and fast,
reliable payments
CASH VERSUS CARD SEES A STARK GENDER DIVIDE (Source: Checkout.com survey October 2020)
PayPal, ApplePay, GooglePay or other digital Wallet Debit card, credit card, or pre-paid card Bank transfer Cash on delivery
60
50
40
30
20
10
Male Female
18
M E N A P N O W: T H E C OV I D - 1 9 C ATA LY S T
EVERY SECTOR SEES A DIGITAL BOOST

Percentage of MENAP population now buying more online since COVID-19 started
45
40
35
30
25
20
15
10
0
s s ) ) s ,
g ie on ic ts ls ie ts re ts ds ic ls
in s hi ke ea r c tu c o us te ls)
m tic ov s ron i c ce du r ni du go M o
h t a
o m fa t t m ro o o s, en
o e
gr m
s/ g/ ec rt d G pr fu pr r y
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a t l .c
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Be uc C
.g (p G ou (e
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en Tr
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MENAP now:
the COVID-19 catalyst
CONSUMERS EMBRACE THE CHANGE this year to date, but it should also be noted
that the KSA actively banned cash for a period.
The near-inevitable impact of COVID-19 on This meant that all Saudi payments were taking
ecommerce and digital payments around the place on cards and through digital payment
world has been well-publicized. And MENAP is methods only.
no exception. Checkout.com has seen a volume
increase of nearly 86% YoY in MENAP for 2020 Following warnings from the WHO (World
to date. Considering Checkout.com’s already Health Organization) that physical cash
deeply established presence in the MENAP poses an added risk of disease transmission,
market, this increase is noteworthy. Not only did authorities globally took a stand to actively
lockdowns and people’s natural anxieties play discourage cash use, and consumers were
their part in driving significant volume spikes swift to take note.
19
“During the pandemic, Visa collaborated goods and services, and Bykea plans to help drive
with government agencies and bank partners secure card payments in a post-COVID-19 world.”
across the MENA region on campaigns such as
‘Stay Secure’, promoting safe digital payment “The value proposition for digital payments
practices and discouraging the use of cash,” changed overnight,” agrees Emre Talay, Director
says Hadi Raad, Vice President, Head of Digital of Global Payment Operations at Delivery Hero.
Solutions – CEMEA at Visa. “Suddenly it wasn’t just convenience, but a
matter of public health. And there was this
“We have also helped promote local shopping huge shift from cash to digital payments across
and participated in educational campaigns all markets without exception. In some markets,
to help small businesses succeed in their the shift is around 50% of the cash usage,
ecommerce ventures. Additionally, ecommerce which has converted to digital. The change
platforms disabled cash on delivery to ensure is rapid.”
safe delivery and limit the spread of the
virus, further accelerating digital payments Talay’s observations are all the more interesting
acceptance.” because they indicate serious intent to stick:
“We’ve also seen a rise in consumers wanting to
And merchants have been keen to foster the save their card details on file,” he says.
shift. As Bykea Founder Muneeb Maayr says,
“Paying digitally for ecommerce, during the last Visa’s Hadi Raad agrees: “This is creating habits
mile, helps solve for contactless payments for that are difficult to change. Cash now carries
an extra stigma of low-hygiene, in the minds
of consumers. The payments landscape has
already forever changed, and every business
INCOME A GREATER DETERMINANT OF INCREASED has no choice but to prepare, build and run a
ECOMMERCE SPEND THAN COUNTRY digital-first business to survive and thrive, in a
(Source: Checkout.com survey October 2020) post-COVID-19 world.”
Much more frequently 100% Consequently, Checkout.com data showed

that new merchants in the region were looking
Somewhat less frequently 80%
to shift their online payments strategy at record
Somewhat more frequently levels when the pandemic struck. In fact, since
60%
Much less frequently the start of the pandemic Checkout.com has
40%
About the same
seen more than 1000 new merchant inquiries.
20% These merchants can broadly be placed in
three categories: those moving from offline
0%
to online, those moving from cash to digital
5 2 e
60
0 66 33 ov payments and new entrepreneurs
$1 - $2 - $5 d ab
6 n
low 60
0 66 3a and startups.
Be $1 $2 33
$5
“We have also seen increased demand from

INCREASES IN ONLINE SHOPPING DUE TO COVID-19 smaller merchants and delivery agents to
BY SUB-REGION accept digital payments. In this regard, Tap to
Phone programs where Android smartphones
Much more frequently 100%
can become a contactless terminal without any
additional hardware are gaining momentum,”
Somewhat less frequently 80% says Visa’s Hadi Raad.
Somewhat more frequently
60%
Much less frequently Even large, powerful brands in the region
40% were seeking swift and expert assistance from
About the same
20%
Checkout.com as they sought to set up online
payments capacities where they had not been
0% previously needed.
C n t an
GC rda yp ist
Jo Eg Pa
k
“One of the biggest developments we’ve
seen over the past couple of months in the
20
KSA was the increased adoption of contactless to go fully prepaid. And we saw 300% growth
payments, specifically Apple Pay, as an in our GMV and gross margins.”
increasingly preferred method,” notes
Muzzammil Ahussain at Seera Group. The shift to online reported by merchants
is corroborated by consumer sentiment.
“This has obviously been on our radar Not only do 45% of consumers surveyed say
before, but we have worked closely with our they are buying more online as a result of the
payment providers to make sure the customer pandemic, but 47% anticipate that they will be
experience is seamless,” says Muzzammil. buying online even more frequently next year
regardless of whether the pandemic continues.
COVID-19 turned out to be the single largest
In fact, 41% say they have increased their
enabler for the growth of the ecommerce digital purchase of meal deliveries, closely
industry in Pakistan. followed by the category of clothes and
fashion, which 37% are now purchasing
In Kuwait, KNet CEO Abdullah Al-Ajmi reported online more often.
that electronic payments made through apps
and online jumped by 109%, with monthly This can also be understood as a sub-regional
operations increasing from five million before the divide where the GCC and the Levant have the
crisis to ten million operations as of July 2020. highest emphasis on meal delivery, while Pakistan
and North Africa see the most significant increase
“COVID-19 turned out to be the single largest in clothes and fashion purchases during the
enabler for the growth of the ecommerce pandemic. Lower-income populations (below
industry in Pakistan,” observes Shayaan Tahir, $1600) are most likely to have increased their
CEO and Founder of Homeshopping.pk. “We online purchases of clothing. Higher-income
got the chance to go fully digital, making us populations say their most significant increase
the first ecommerce marketplace in the region has been in food delivery.
21
The conglomerate’s
COVID-19-pivot checklist:
“As a business, we were prepared from a • As affordability becomes an overnight
payments acceptance perspective in most of requirement, we had to rapidly work with
our markets. Most of our marquee brands had our issuers and fintechs to introduce, EPP
an established ecommerce presence, and we on Credit Cards (at lower thresholds),
had already been 100% contactless across all PoS Financing/ BNPL (Buy Now Pay Later)
our vast network of stores for some years by solutions for our customers
the time the pandemic struck. Nevertheless, • Finally, we immediately started to
COVID-19 and its impact on consumer spending, collaborate with a handful of our banking
consumer confidence and the sudden shift in partners to leverage their data and create
channel mix (ecommerce vs. in-store) have had targeted offers for customer segments to
a substantial impact on our business and we’ve give them the confidence to shop at more
had to respond from a payments perspective attractive prices but in a relevant manner
rapidly. Some of the key responses included:
Since lockdowns have eased in several markets
• Ensuring that we had electronic and we operate in, we’ve seen a healthy return
contactless payment solution for to in-store shopping. Still, ecommerce is a
deliveries, as a very large percentage of significantly higher percentage of the overall
the ecommerce trade in the region is done mix than before COVID-19.”
using cash-on-delivery (CoD)
• For brands that didn’t have a fully
functioning ecommerce model, we had to Arjun Singh
introduce ‘request to pay’ and/or ‘payment EVP Group Head for Cards and
link’ as a method for collecting payments. Payments, Al-Futtaim at Visa
INCREASED ONLINE SHOPPING BY PRODUCT/SERVICE PER REGION DUE TO COVID-19 (% of respondents)

Beauty/grooming products/cosmetics Books/movies Clothing/fashion Home furniture Gaming products

Events (e.g. concert tickets) Food (prepared meals) Groceries Electronics None of these
Travel (e.g. flights, hotels, car rentals) Household products Luxury goods (e.g. jewellery) Music
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
22
Winning without
the luxury of time
A case study in speedy pivots to digital payments across
MENAP by Jelena Tustic, Digital Operations and ePayments,
Chalhoub Group
Jelena Tustic
Digital Operations and ePayments,
Chalhoub Group
Being a Dubai-based luxury retailer with a term ones, thereby creating more robust and
strong presence in the region, and having confident long-term goals!
spent the past three years transforming
ourselves from a traditional to a hybrid retailer, So, our current focus is a continued digital
payments became a high business priority, payments push in our region where CoD has
especially during COVID-19 and the ensuing been the favored payment method. We’ve seen
restrictions on public movement. the shift in consumer behavior, acceptance,
adoption and popularity in using new payment
During the lockdown, we not only had to ensure a methods, most notably mobile wallets and we
strong online presence for the resilience of all our hope that soon local legislations, especially in
brands but also for the safety of our customers. regional markets where ecommerce is still very
immature, will enable most of the payment
Therefore, providing real-time contactless methods that are currently not yet available or
payments during the pandemic was imperative. that are country-specific.
But it made us realize how reliant we were on
offline processes and the existing offline retail Our attention to payments prior to COVID-19
structure. We had to quickly change and was not significant due to having only a few
adapt in order to be ready for successful brands with an online presence in MENAP, but
ecommerce launches. we acted fast and adapted to the new reality.
COVID-19 was a catalyst that rocket-fueled We have since noticed steady progress and
the decision-making process for our online a shift from CoD to CCoD (or PoS) and online
presence and made us more agile in payments via ecommerce payments or the use
transforming our long-term goals into short- of payment links.
23
ONLINE CONSUMERS OF LUXURY GOODS BY AGE GROUP PER COUNTRY (% of respondents)

Age 18-24 Age 25-34 Age 35-44 Age 45+
60%
50%
40%
30%
20%
10%
0%
Bahrain Egypt Jordan Kuwait Qatar KSA UAE Pakistan
However, this quick shift online and the general experience. We could build incredible websites
trends of increased digital fraud at this time and apps, but if the checkout experience is
mean that we have seen that specific brands not seamless and smooth, we could lose the
are attracting fraudulent customers, and as customer.
such, we’ve had to analyze and set specific rules
to prevent these attempts while keeping our At this time of change, a good, seamless
customer experience as smooth as possible. customer experience in payments requires an
extra ‘helping hand.’ For safety reasons, older
Unusual purchase behavior and patterns can customers that were in favor of CoD had to
require support at any time of day or night learn fast and we were there to educate, raise
because our luxury items are high ticket, the confidence and help with the transaction,
values at stake are significant. whether that be through instructions or with the
support of customer service teams.
COVID-19 was a catalyst that rocket-fueled the
Ultimately, as a leading partner in luxury,
decision-making process for our online presence Chalhoub Group’s vision is to become a hybrid
and made us more agile. retailer at the fingertips of all our customers
everywhere. Online payments are one of the
Because of this spike in fraud and the fact that key elements that will help us in this ambition.
customer payment habits have changed during
the past months, data is key to monitoring They will help us to better leverage
everything. Robust data enables us to be agile technology, streamline operations, increase
and offer customers payment methods and risk monitoring, make use of business
means which are seamless and provide a great intelligence tools and ramp up real-time
customer experience. monitoring to build omnichannel capabilities
rapidly. In a sense, we have the pandemic to
In fact, the checkout experience could be a thank for being such a high-speed catalyst for
deal-breaker in creating the perfect customer our innovation projects.
24
Turning crisis into

opportunity
A case study in how great data can underpin resilience
in a crisis by Muzzammil Ahussain, EVP Consumer Travel,
Seera Group
Muzzammil Ahussain
EVP Consumer Travel, Seera Group
A key issue for us when the pandemic set any number of things including fraud, offer
in was how to manage risk and fraud. With abuse, ensuring orders are fulfilled, and generally
reduced transaction volumes due to the tweaking for the best balance between layers of
restrictions on travel across our core markets, security and user experience. Fortunately, Seera
risky and fraudulent transactions had a higher Group is a data-driven organization, especially
impact on our business. when it comes to payments and fraud. We don’t
leave things to chance.
Missing even one fraud case would be much
more painful than before, so we focused our With refund requests on travel bookings coming
efforts on eliminating these cases as much as in all at once, banks were not equipped to
possible. Reducing risk and fraud had of course handle the load. Therefore, being able to move
been part of our strategy regardless, but with customers from cash or card refunds to e-wallet
the pandemic in play, we just sped up the work refunds helped us manage the load and, vitally,
to cater to the new impact levels. also retain the customer.
We created a machine learning system to
17%
recognize fraud patterns and we analyzed
customer behavior throughout the funnel.
We were also supported by globally available
networks and their risk scoring system to of consumers in the Kingdom of Saudi
assess customer behavior and drive decisions. Arabia (KSA) are purchasing travel and
transport more frequently online due to
During the pandemic, such insights, as well as the pandemic.
our historical data, became even more important
and have helped us to decide what to do with
25
WHERE MENAP’S ONLINE CONSUMERS OF TRAVEL AND

TRANSPORT COME FROM BY COUNTRY
6%
6%
Pakistan Egypt
16%
Kuwait Saudi Arabia 7%
Bahrain Jordan 6%
13%
Qatar UAE
16%
19%
A second focus at this time has been to Generally, though, we feel customers in the
increase our customer retention during a market are up to speed with digital payments
potentially risky period in terms of customer and those who have had to adjust have done
satisfaction. With refund requests on travel so quickly. Finally, we actually saw some
bookings coming in all at once, banks were not positive movements from this pandemic: July
equipped to handle the load. Therefore, being and August were some of our best months for
able to move customers from cash or card domestic leisure travel in KSA.
refunds to e-wallet refunds helped us manage
the load and, vitally, also retain the customer. True that we had a very small leisure base
Since we are an omnichannel travel service to begin with when we’re comparing it with
provider, payment behavior is normally domestic business and travel back home from
dependent on the channel. previous years, but it’s promising and bodes
well for the future when international outbound
With reduced transaction volumes due to the opens for Saudi, which is tentatively scheduled
restrictions on travel across our core markets, risky for January 2021.
and fraudulent transactions had a higher impact on In a recent study that Seera Group conducted
our business. with over 3,000 Saudi travelers, we also
discovered that a majority of Saudi nationals
We were obviously used to the majority of our are confident enough to travel as COVID-19
OTA customers paying through online payment restrictions ease, with 73% of Saudis confident
methods, whereas our retail branches still had to go with restrictions partially lifted. We see
a fair amount of cash transactions. However, this in our search and booking volumes as Q1
that completely changed with COVID-19. Since 2021 is already on people’s radar.”
the lockdown in KSA, we have decided to only
accept contactless payment methods for the
safety of our staff and our customers.
In our retail branches, we have dedicated We actually saw some positive

travel advisors who support our customers in movements from this pandemic:
processing payments digitally. On WhatsApp, July and August were some of our
one of our primary communication channels
to engage with customers, our agents also best months for domestic leisure
actively support payment processing. travel in KSA.
26
D I G I TA L PAY M E N T S A N D P E R C E P T I O N S
Security,
maturity
and trust
As we’ve seen, the fast adoption of digital an online payment due to security concerns.
payments across MENAP is afoot. Nevertheless, Rather than concerns around digital security
we cannot ignore that cash-on-delivery (CoD) being the main force at play, it appears that
remains a popular payment method. social and political security may be the more
significant factor.
Across the MENAP region, 36% of consumers
surveyed say their preferred payment The data shows that lower-income consumers
method for online purchases is still CoD. The and women are more likely to still prefer CoD
challenging implications of this, for corporate than higher-income or male consumers. Yet,
cash management operations, mean that many 78% of women say that paying online is a safe
merchants are understandably keen to play thing to do and 74% of consumers in the lowest
their part in actively encouraging the transition income bracket feel that making payments
to other payment methods. online is safe. So any correlation between cash-
centricity and cyber-security anxieties is hard
However, a pragmatic understanding of where to trace.
and why cash has a foothold is imperative
too. According to Arjun Singh at Al-Futtaim Sylvie-Anne Bond is a lawyer who has lived
Group, “It’s best to think about moving to less- and worked in the UAE, Lebanon and Egypt,
cash communities rather than fully cashless advising banks and financial institutions across
communities all across the region.” MENAP. She emphasizes the clear distinction
between the GCC and other countries when
A preference for cash is often correlated it comes to understanding cash as a cultural
with distrust of digital security and anxieties phenomenon.
about online fraud. However, data suggests
such anxiety about cyber-security in payments While the GCC countries tend to have
per se is really not the significant sticking governments who are actively pushing a
point in MENAP. Of customers surveyed, cashless agenda and have populations who
81% say that paying for goods and services have readily followed suit, there are other parts
online is a safe thing to do and 70% have only of the region where the dynamics at play
occasionally or never been put off from making truly differ.
27
“Remember that cash is already one abstraction While the MENAP region benefits from greater
for communities who have tended to think of internet penetration than Sub-Saharan Africa,
their wealth in terms of tangible assets such mobile money transactions in MENAP last year
as jewelry,” says Bond. amounted to less than 2% of the value of mobile
money transactions in Sub-Saharan Africa.
“Numbers on a screen are an even deeper
level of abstraction and remove especially
when trust in governments, socio-economic
harmony, banks and even currency stability
can all really waver.” Remember that cash is already
one abstraction for communities
These countries may each be unique, but they who have tended to think of their
don’t exist in a vacuum. Many will be looking at
the recent banking collapse in Lebanon wealth in terms of tangible assets
with caution and those who feel vulnerable such as jewelry.
are likely to fall back on cash-under-the-
mattress mentalities. Meanwhile, social media is near ubiquitous in
Kuwait, Qatar and the United Arab Emirates
MOBILE MONEY, SOCIAL MEDIA AND at 99% of the total online population, We Are
SCOMMERCE Social figures show.
With a view to how these more insecure “Think about the role Facebook played for
segments can be encouraged into progressive precisely the most socio-politically insecure
digital finance and payments solutions, Bond populations, the part it played as a coordination
points to the Sub-Saharan African model of tool during the Arab Spring and other local
mobile money apps. It allows a hybrid digital- uprisings,” says Bond. It’s a point backed up in
cash dynamic and can work for unbanked recent research by Pew Research Center which
communities, as a significant potential growth shows that 82% of people in emerging countries,
opportunity for the MENAP region. including those within MENAP, view mobile
6m 4m
JORDAN
KUWAIT
37m
1.4m PAKISTAN
40m BAHRAIN 3m
EGYPT QATAR
23.7m 8.7m
UAE
SAUDI ARABIA
2.6m
OMAN
ACTIVE FACEBOOK USERS BY COUNTRY

AS OF MARCH 2020
(Source: InternetWorldStats 2020)
28
phones as having a positive societal impact. And Oregon, reported that the GCC spends an extra
63% specifically see social media channels as 58 million hours on Facebook during Ramadan.
having positive personal and societal impact. This equates to c.5% more time than usual,
according to Facebook’s own data.
“If these communities struggle to trust national
social and political institutions at times, Merchants and social channels alike are alert to
I wonder whether payments solutions offered the captive audience of in-channel ecommerce
by social brands like Facebook, might not throughout the year and at key holidays and
increasingly become quite a compelling and shopping periods. Additionally, a veritable army
natural proposition?” adds Bond. of smart and powerful influencers are in place
across the Middle East as potential, high-impact
spokespeople, for ecommerce brands.
If these communities struggle to trust national social
and political institutions, payments solutions offered However with shoppable ads being a key
by social brands like Facebook might increasingly channel for converting social browsing
into social shopping it is notable that as of
become quite compelling. September 2019 the MENAP region (despite
its deep social penetration) had one of the
Indeed 14% of consumers surveyed say they lowest digital advertising spends globally. The
most frequently conduct their online shopping, opportunity is vast and as yet largely untapped.
specifically within a social media app such as
Facebook or Instagram. Nevertheless, the psychological shift from
paying in advance compared with ‘on delivery’
And it’s a trend with which all our leading voices should not be overlooked. As the shift away
and industry expert agree. Most forecast that from CoD takes place, and consumers grow
sCommerce - or social commerce - will be one accustomed to parting with money before
of the region’s key ecommerce trends over the receiving their product, merchants need to
next 2 to 5 years. Ninety percent of the UAE’s establish trust, demonstrating that they deliver
internet users also have an active Facebook on their promise and fostering confidence in
account, and Snapchat reportedly has more the returns and exchange process.
active users in the UAE than in almost any of its
other geographies.
Meanwhile Saudi Arabia has the highest Across the entire region, there were
YouTube per capita viewing figures of anywhere 374 million internet users, of which 258
on Earth. Indeed the MENA region enjoys a million were registered Facebook users
reported 310 million YouTube video views per as of March 2020.
day, second only to the US.
Source: InternetWorldStats 2020
Social Media in the Middle East: 2019 in Review,
a research report published by the University of
29
Digital-savvy Arab
youth are upending
the region’s cash
economy
Sunil John
President - Middle East at BCW and
Founder of ASDA’A BCW
Talk about flattening curves: Young people This, in fact, reinforces a dominant pattern
in the Arab world, the Middle East and North we have seen in recent years, with more 18
Africa region’s largest demographic of more to 24-year-old digital-savvy young Arabs
than 200 million, are transforming the retail embracing ecommerce and digital payments in
landscape by increasingly shopping online a region that historically has been dominated
and using digital payments, as the findings of by brick-and-mortar retail and cash payments.
our 12th Annual ASDA’A BCW Arab Youth
Survey reveal. THE REGION’S UNIQUE CHALLENGES
Just two years ago, in 2018, slightly more than Unlike in other parts of the world, the
half (53%) of young Arabs said they shopped ecommerce landscape of the MENA region
online. Fast forward to early 2020, right has witnessed its own unique challenge: even
before the COVID-19 pandemic fully impacted though more young Arabs were increasingly
the region, to find that the share of online turning digital-first, shopping online rather
shoppers among Arab youth across 17 countries than ‘going shopping’, driven by high levels
included in our survey had jumped to 80%, a of internet and smartphone penetration, the
remarkable increase in such a short period of region’s digital marketplace had for years
time. It is a safe bet to assume that when we remained largely under-developed.
survey Arab youth again in 2021, we will see
another significant jump in online shopping, As experts pointed out in our 2018 ASDA’A BCW
accelerated by the impact of COVID-19. Arab Youth Survey White Paper, compared to
30
AS DIGITAL SHOPPING INCREASES THE PAYMENT METHOD IS CHANGING (% of respondents)
(Source: BCW, Arab Youth Survey)
Online shopping
80%
70%
60%
Pay with card

50%
Cash-on-delivery
40%
2018 2019 2020
19 online purchases made by an average fintech investor interest in MENA. This was
shopper in the US annually, MENA shoppers reinforced with the launch of Noon, a digital
typically turned online only two to four times a marketplace launched ‘in the region, for the
year, the lower frequency due to three factors: region’ — another compelling success story.
“one, a lack of supply and limited product
selection; two, the relatively poor performance With more local and global players bursting
of the last mile delivery; and three, lack of trust onto the scene and last mile logistics gaining
and the prevalence of cash-on-delivery.” These efficiency, accompanied by significant
concerns are now increasingly being put to rest. changes in consumer behavior, driven by
the COVID-19 pandemic, the region is now
SHIFT TO DIGITAL PAYMENTS poised for the next leap in ecommerce and
digital payments.
A game changer in this evolution was the
acquisition of Souq.com, one of the region’s The growth in ecommerce, especially as
first homegrown marketplaces, by Amazon. It the primary mode of shopping among Arab
not only created an inspirational ‘Unicorn’ from youth, is also reflected in an increasing shift to
the region but also catapulted international digital payments. Compared to 53% of online
shoppers who said they were using cash-on-
delivery most frequently in 2018, there has
ARAB YOUTH SUBSCRIPTION BY PERCENTAGE been a reversal in the past two years. The
majority – 52% – of online shoppers among
young Arabs now saying they use digital
payments rather than cash on delivery when
shopping online.
52% 62% In the GCC states, where 95% youth say they
shop online, the embrace of digital payments
is even more pronounced. While 45% of young
GCC online shoppers opted most frequently
for cash on delivery in 2018, today, 61% of
Music streaming services Video streaming services them prefer using cards for online purchases,
a trend that could possibly upend the region’s
Source: BCW, Arab Youth Survey dominant cash-driven retail.
31
CoD IS DOMINANT FOR THOSE AGED 18-24 IN GCC, JORDAN, EGYPT AND PAKISTAN (%) of population
PayPal, ApplePay, GooglePay or other digital Wallet Debit card, credit card, or pre-paid card Bank transfer Cash on delivery
80
70
60
50
40
30
20
10
0
In our COVID-19 Pulse Survey, conducted in

August 2020 to measure the impact of the
pandemic on the region’s youth, 49% of young
Arabs said they are now using contactless
payments more frequently than they did
before COVID-19. This is a clear indication
that the recent trend of Arab youth shifting
away from cash on delivery towards digital
payments is set to accelerate significantly in
the years to come.
A TURBO-CHARGED DIGITAL ECOSYSTEM
The pandemic has no doubt turbo-charged

the digital ecosystem across the region as
more customers, especially youth, turn online
for shopping. The most persuasive change,
however, will be the impact of the digital-savvy
young Arabs, on new – and old – enterprises.
Pivoting to a digital-first mindset that

understands the importance of a seamless
online shopping and payment experience will
be a strategic imperative for traditional retailers
to survive and thrive in the MENAP region,
especially as innovative start-ups hold the
promise to evolve as champion companies. As
they say, data and digital is the new oil of the
region. And young Arabs are shaping a new
narrative, one less banknote as well as one less
as brick (and mortar) at a time.
32
PARTNER VIEW
A priceless
future, secured by
technology
Wider adoption of secure digital payments switch seamlessly between devices and
experiences is accelerating growth in new ways wearables, we buy groceries online and make
and enhancing the way we connect with the contactless payments in-store. According to
world around us. McKinsey, we vaulted five years forward in
consumer and business digital adoption in a
Technology is helping us achieve things matter of weeks.
previous generations could only dream
of. This has been true for many years, but In tandem with these changes, the future of
in 2020, it became a universal reality as payments is being redefined. The accelerated
Gaurang Shah individuals, businesses, financial institutions adoption of contactless payments, growth in
Senior VP, Product and governments embraced the power of ecommerce and the demand for “digital-first”
Management, Digital technology for good. experiences are just some of the emerging
Payments & Labs, trends.
Middle East and Africa According to PwC, the online payments
Mastercard market in the Middle East was already the CASH. THE “OLD” VS THE “NEW” NORMAL
fastest growing in the world in 2019, a trend
that persisted until the start of 2020. The Cash is risky, inconvenient and expensive –
COVID-19 pandemic saw the acceleration of it remains a barrier to financial inclusion
online commerce, and now more than 90% of and growth. In comparison, digital payment
consumers expect for this to continue. methods are secure, seamless and cost-
effective.
CHANGING AT THE SPEED OF LIFE
The short-term response to COVID-19 has led
In the context of the COVID-19 pandemic, we to the accelerated adoption of new connections
have witnessed how technology has come to the world of digital commerce. More people
to play a critical role in people’s lives. Initial and businesses can now be welcomed to the
restrictions of movement during lockdown formal economy, setting the foundation for
played a definitive role in changing customer sustainable, inclusive growth.
expectations and behavior as people swiftly
moved more of their lives to the digital space. Indeed, the digital economy is a powerful
tool with great potential. Right now, the public
We now regularly work online from home, we and private sectors have the opportunity to
join virtual meetings, we educate children build communities that are less reliant on cash
remotely on tablets, we are entertained via and better positioned to take advantage of
streaming services and online content, we digital growth.
33
PARTNER VIEW
LET’S TAP INTO CONTACTLESS and merchants alike, we also recently

introduced the Mastercard Digital Enablement
Contactless payments have rapidly accelerated Service (MDES) for Merchants offering.
since the onset of the pandemic as we see
a rise in consumer demand for safer, faster The new service uses tokenization technology
payment methods. to speed up and simplify the purchase process
online and in app, as well as for subscription-
During this time, Mastercard has helped partners based and recurring payments like streaming
make a seamless transition into the world of music and video services, and utility bills.
digital commerce by providing omni-channel
payment capabilities and experiences. Today, In addition, with Mastercard Click to Pay,
almost one in nine Mastercard transactions tokenization technology will not only secure
at point-of-sale (POS) terminals in MENA are payments for merchants that store cards on file,
contactless. Contactless payment technology but also those who see most of their volumes as
provides a more seamless way to pay, higher guest checkouts, or payments where customers
speed and convenience at checkout, and a choose not to store their details with merchant
secure way to make transactions. and manually enter their details instead.
As consumers move online and businesses get

Today, almost one in nine Mastercard transactions at access to enhanced security, greater reach,
point-of-sale (POS) terminals in MENA are contactless. more resources, and deeper insights through
the power of technology, it is crucial that
These advantages have been recognized by smaller business don’t get left behind.
the public. A recent Mastercard consumer
sentiment survey noted a significant increase in OPENING DIGITAL DOORS TO SMES
the use and adoption of contactless payments,
due to the simplicity, safety, speed and Small and medium businesses are the lifeblood
cleanliness amidst social distancing guidelines. of economies, especially in our region, often
In fact, eight in ten respondents in the region providing a livelihood for many people in our
said they would continue to use contactless societies. In fact, according to the IMF, in the
payments going forward. Arab world, SMEs represent 96% of registered
companies and employ half of the workforce.
DIGITAL GROWTH BY SECURING ECOMMERCE Yet their access to finance is the lowest in the
world: lending to SMEs in the region is only
The rise in online transactions has changed the 7% of total bank lending.
way we shop forever. This was demonstrated in
a recent Mastercard survey, which showed that The impact of the pandemic has been far-
54% of people in the UAE believe a preference for reaching: the Global State of Small Business
ecommerce over in-store shopping is here to stay. survey published by Facebook in partnership
with OECD found that 50% of small and
But with such opportunity come certain risks. medium businesses in the UAE have reduced
Today, the world faces a $5.2 trillion cyber breach the number of employees as a result of the
problem, which is one of the biggest threats to COVID-19 pandemic, compared to 35% in Saudi
consumer trust. In 2019 alone, Mastercard saved Arabia and 51% in Egypt.
stakeholders $20bn in fraud prevention through
its AI-enabled cyber systems. The survey further revealed that 81% of SMEs in
the UAE, 64% in Saudi Arabia and 73% in Egypt
Our Connected Intelligence strategy relies on reported lower sales this year compared to 2019.
multi-layered security linked through thousands
of data-based decision points that mitigate We believe that a transition to digital could
fraud. It assesses risk, reduces the need for provide much-needed support to these
unnecessary friction, enhances decision-making, businesses. And we are committed to enabling
and optimizes the consumer experience. small businesses to sustain themselves through
times of crisis by leveraging our resilient
As part of Mastercard’s commitment to support network, insights, technology, products and
the financial data and security of consumers services and philanthropic support.
34
PARTNER VIEW
Connecting 50 million small businesses to the interoperable Digital Cash Platform aims at
digital economy is a crucial part of Mastercard’s eradicating the use of physical cash and helps
global commitment to financially include UAE transition into a truly cashless society by
1 billion people by 2025, ensuring inclusive providing a digital equivalent for physical cash
growth that can change communities for the that is tuned with the lifestyle of its users.
better. We also recently introduced our ‘SME
in a Box’ offering across MENA – a low-cost The acquisition of Transfast, a global cross-
payments solution that enables small business border payments network provider, has
owners to move their businesses online and enabled us to add more depth and scale to our
accept a range of digital payments from Mastercard Send and Transfast technologies,
their customers, simply by using smartphone which deliver cross-border payments to bank
technology. accounts, mobile wallets and cards.
PARTNERSHIPS ARE CRUCIAL TO THE We are also supporting large organizations in

SUCCESS OF THE TRANSITION TO A DIGITAL their digital transformations. Delivery Hero,
FUTURE. the world’s leading local delivery platform, has
partnered with Mastercard to fully digitize its
As we progress through 2020, it has become payment chain within its ecosystem across all
evident that the technologies powering their brands in MENA. Delivery Hero’s brands
payment experiences are becoming including Talabat, Hungerstation and Zomato,
increasingly multi-rail and are shaped by the will now offer pay-on-delivery contactless
growth of domestic players. solutions for 20 million consumers. This will
also help over 650,000 delivery riders in the
Delivery Hero’s brands including Talabat, region get access to their earnings and a wide
range of financial services, while over 100,000
Hungerstation and Zomato, will now offer pay- restaurant partners in the region are able to pay
on-delivery contactless solutions for 20 million suppliers and employees instantly.
consumers. This will also help over 650,000 delivery
A ONE-WAY TICKET TO A DIGITAL FUTURE
riders in the region get access to their earnings.
So, as the world continues to change and
In Saudi Arabia, we launched real-time evolve at an unprecedented pace, there is
payments that enable instant account- one destination that might not have been on
to-account payments between financial your bucket list this January, but we highly
institutions, businesses and consumers, in recommend adding it: The Digital Economy. A
partnership with Saudi Payments, a fully place you, your connections and your business
owned subsidiary of the Saudi Arabian can pay and get paid – safely, swiftly, securely
Monetary Authority (SAMA). We believe the and seamlessly.
new technology will positively impact the
Kingdom’s economy by upgrading its payments However, this is not a solo journey. A digital
infrastructure, significantly speeding up digital future is only possible through the power of
commerce and enabling newer fintechs and collaboration and innovation.
financial institutions to take advantage of the
benefits of a digital economy. By harnessing the exponential impact of
partnerships, the private and public sector
In the UAE, Mastercard recently partnered with can come together to create a brighter, more
Emirates Digital Wallet, a company owned by connected and more inclusive future for all.
15 of the largest national banks in the UAE to We strive to be a binding force in the digital
launch Klip, which will create opportunities economy, bringing together various players,
for the UAE’s 1.3 million unbanked residents by be it government, businesses, consumers and
providing a platform for them to become part financial institutions, to create a thriving world –
of the financial system. The robust, secure and a world beyond cash.
35
PARTNER VIEW
Payments become
a strategic priority
in MENAP
On the consumer side, as we look ahead to shifted, with an increasing number of people
the near and medium term, I think there are in senior levels now considering payments as a
a number of trends which are truly hastening strategic topic. In practice, this means that: The
towards us. With the pandemic and its cost and ROI of payments is now increasingly
aftershocks taking effect cash will continue to being better understood across the business.
be displaced, and I anticipate that the debit Consequently, retailers now increasingly
share of transactions will grow. We’ve already want to build strategic partnerships with their
seen this over the last six months and I believe payment partners – whether it’s issuers, PSPs,
that affordability will remain key, meaning that acquirers or networks.
Arjun Singh issuers and fintechs in the BNPL space will
EVP Group Head for grow their share of spends. The pandemic has put a spotlight on payments
Cards and Payments and on digital payments in particular. Indeed,
at Al-Futtaim Group Meanwhile, and in tandem with these shifts, payments are now widely recognized as a key
ecommerce will continue to grow at pace. In part of the consumer shopping journey and
my view there will be increased use of channels increasingly business leadership understands
such as voice, live streaming, social and video that payments have a role to play from ‘Pre
as a means of ecommerce engagement. I also Purchase to post-purchase’ (especially in the
believe we will see growth in omnichannel ecommerce channels).
commerce and payments. Specifically we
will see growth in BOPIS (Buy Online Pick-up A corollary of this new found payments interest
In-Store). Contactless will extend beyond just is that merchants have a greater appetite to try
Tap’N’Go in-store into wallets, both third party new payment methods and to take a ‘test and
and merchant led, scan & go and potentially the learn’ approach to payments innovation. This
emergence of biometrics as long as the security, is matched by greater appetite for innovation
trust and safety concerns can be addressed. and creative approaches to what payments can
do. An example of this is a greater willingness
In terms of the strategic role of payments I from merchants to integrate or align payments
think change is also afoot. The pandemic has with loyalty programs and, where possible,
affected how businesses are thinking about and build greater in-house capabilities in payments
prioritizing payments as a strategic necessity. management. To that extent the payments
Already the narrative towards payments and ‘coup’ has taken place not only in households
the role it plays within the businesses has but in the boardroom.
36
F U T U R E FO R WA R D
Innovation
& progress
Merchants in MENAP, who have felt the force opening new opportunities for merchants and
and speed with which COVID-19 moved their consumers in the country.
businesses and payments online, are also
seeing this flurry of demand and activity Countries across the region are making strides
as a catalyst for more innovation and more to establish fintech innovation hubs. The KSA’s
competition in the payments landscape. launch of Fintech Saudi and Saudi Payments
in recent years is a testament to the ambition
According to Jelena Tustic, Digital Operations and appetite the Kingdom, and its authorities
and ePayments, at Chalhoub Group, “With more have for its digital economy and financial
new players entering and providing digital (technology) services sector. And according to
payment platforms at this time of need, they’re research published by MAGNiTT, Egypt ranked
setting the momentum for payment trends such 1st, in 2019, by the number of investment
as paying in installments, link payments and so deals in MENAP (Venture Investment Report),
on. The resulting competition could be helpful accounting for 25% of total deals in the region.
to enhance the overall service experience for By total funding, Egypt ranked second, after the
end-users across this region.” UAE, at $95M.
But the truth is that, even without a global In practice, these kinds of initiatives are
pandemic, momentum was already gathering changing and updating the infrastructure for
around payments and fintech innovation. digital payments and widening the payment
The UAE government has established a clear method options available. They are also
agenda to promote a cashless society in order nurturing a proliferation of the fintech and
to support its wider agenda to digitize its payments talent pool, which has become
economy. September 2020 saw the launch of increasingly active across the region. So while
two significant cashless payment initiatives in MENAP is often pigeonholed as following an
the UAE. Abu Dhabi Pay, launched by Abu Dhabi unusual, or even a lagging, fintech trajectory,
Government Services (TAMM) in partnership those with ears to the ground can hear the
with FAB, allows residents and citizens to make powerful rumblings of change, progress
payments via a digital wallet app. and innovation. “Staying on top of new
developments in the payments sphere is crucial,”
Another powerful example is Pakistan where, says Muzzammil Ahussain, EVP Consumer Travel
also in September 2020, the country’s at Seera Group. “The MENAP region works fast
National ecommerce Council (NeCC) and is perfectly capable of competing on a
announced a joint initiative with the National global scale in terms of fintech.”
Institutional Facilitation Technologies (Nift) and
Checkout.com dedicated to bringing more And progress is happening fast within forward-
international payment methods to Pakistan, thinking merchant teams, too. Indeed, if fintech
37
F U T U R E FO R WA R D
in the Middle East has been hampered by an Pay), Personalization, Loyalty as a Currency
unenthusiastic banking sector, Checkout.com and more. Increasingly we’re looking to explore
sees an emerging and potent partnership opportunities with the ecosystem/super apps
arising between merchants and tech-players. emerging from the UAE in particular.”
This is just the start of the journey as we build out These kinds of partnerships are allowing
merchants to truly alter their offering at a
many more use cases in the future and prepare fundamental level. “We’re working closely with
ourselves for the future of ‘Open Finance.’. our payments partner to deliver what we refer
to as a ‘payments as a service’ capability which
“We’re active in the startup scene and will allow us to rapidly onboard new payment
engage directly with innovative fintechs and types, make more of the customer spend data
PSPs,” says Arjun Singh, EVP Group Head of and improve the overall efficiency in the post-
Cards and Payments at Al-Futtaim. “We’re payment processes,” explains Singh. “This is
working with an increasing number of fintechs, just the start of the journey as we build out
including startups, in the areas of e-wallets, many more use cases in the future and prepare
BNPL (Buy Now Pay Later), RTP (Request To ourselves for the future of ‘Open Finance’.”
Remo Giovanni Abbondandolo

SVP MENAP, Checkout.com
In the next few years we anticipate significant change for MENAP’s ecommerce and payments
ecosystem. My top four predictions to watch are:
1. Open Banking and regulation: There will 4. Cash from hero to zero: Not only will
be a groundswell in regulatory support cash no longer be the favorite method of
through schemes like Open Banking and payment but I think it will soon become the
significant drives from local regulators to least preferred method in the region. Our
promote fintech more broadly. data indicates that cards, digital wallets
and local payment methods will play a key
2. Big merchant players set the pace: We’ll role here
see increased maturity from merchants
understanding the need to deliver a great 5. MENAP attracts new global players:
customer experience and that payments is A lot of clients are looking to expand
a core pillar of that. This will be driven by into or across MENAP. It’s a big region,
the larger players that take up the market so there’s opportunity and complexity,
share and go local. but I see merchants making the effort to
passport across the region and reaping
3. Omnichannel commerce booms: the rewards.
Traditional retailers that are moving online
and the really big online players opening
distribution centers or shops.
38
Maximizing the
MENAP opportunity
The MENAP region represents one of the most Timing is everything: In a region that is as
exciting growth markets in the world. But with dynamic as MENAP, being able to get to market
more fragmentation and lesser maturity than efficiently and respond quickly to changes is
in other global markets, an eye to a strong paramount. Payment solutions with flexibility
operational foundation is key in order to take and modularity, built on the latest technology,
advantage of the opportunity. Often, this starts allow merchants to expedite their time to
with the ability to accept payments in every market, limits integration times, and improves
country, anyway your customers want to pay. transaction performance.
As one senior payments leader said in the Keeping up with customers: From local
inaugural Checkout.com report Connected payment methods to app-based purchases,
Payments: Black Boxes and Paradoxes, “If our expectations of customers in the region are
provider doesn’t offer the local payment method growing. Merchants should stay one step ahead
in that country or we don’t have the right with solutions that present a range of payment
connection and the right supplier for a certain interfaces, the most popular local payment
country, we can see money left on the table.” methods, and offer the best transaction speed.
BEST PRACTICES TO LAY A WINNING Visit Checkout.com to learn more

PAYMENTS FOUNDATION:
about how to accelerate your
Local knowledge matters: Expanding into MENAP business.
and across MENAP requires finding partners
with deep local expertise and on-the-ground
teams. Robust relationships with local issuers to
optimize performance and insights to minimize
risk in an ever-evolving country-by-country
regulatory landscape is critical.
39

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ABOUT US

The leading connected

Find out more at www.checkout.com

MASTHEAD CHECKOUT.COM YOUGOV

With a proprietary panel of over 9+ million people globally

400 million ecommerce transactions processed since 2019.

We’re equally excited to have worked with our

Apple Pay, as an increasingly

People do trust digital

OUR APPROACH TO THE RESEARCH COVID-19 IS A CATALYST FOR MAJOR

The remaining untapped market is mostly

Add to this a combination of new government of consumers surveyed

Mohammed Ali Yusuf (Mo)

GCC ARE THE HIGHEST FREQUENCY ONLINE SHOPPERS

GCC Jordan Egypt Pakistan

Source: Population Reference Bureau 2020

Visa’s top 5 long term digital

3. Cash-on-delivery (CoD) displacement:

CHECKOUT.COM LOCAL PAYMENT METHODS INTEGRATION CHECKLIST

Country Card schemes supported Payment methods supported

Qatar Visa / Mastercard / American Express QPay / PayPal / Google Pay

Oman Visa / Mastercard / American Express Omannet / PayPal / Google Pay

Kuwait Visa / Mastercard / American Express KNET / Google Pay / PayPal

Pakistan Visa / Mastercard / American Express PayPal

CARDS BEGIN TO DOMINATE OVER CASH

Declined - do not honor 20%

Format error 10%

Cardholder failed 3D authentication 7%

Transaction not permitted to cardholder 5%

Invalid card number 2%

Pick up card no fraud 1%

Lost card - pick up 1%

Choosing your PSP for growth

• Technical excellence and robust APIs To learn more, visit Checkout.com

EVERY SECTOR SEES A DIGITAL BOOST

Much more frequently 100% Consequently, Checkout.com data showed

“We have also seen increased demand from

INCREASED ONLINE SHOPPING BY PRODUCT/SERVICE PER REGION DUE TO COVID-19 (% of respondents)

Beauty/grooming products/cosmetics Books/movies Clothing/fashion Home furniture Gaming products

ONLINE CONSUMERS OF LUXURY GOODS BY AGE GROUP PER COUNTRY (% of respondents)

Age 18-24 Age 25-34 Age 35-44 Age 45+

Turning crisis into

We created a machine learning system to

WHERE MENAP’S ONLINE CONSUMERS OF TRAVEL AND

In our retail branches, we have dedicated We actually saw some positive

ACTIVE FACEBOOK USERS BY COUNTRY

(Source: InternetWorldStats 2020)

Pay with card

2018 2019 2020

In our COVID-19 Pulse Survey, conducted in

A TURBO-CHARGED DIGITAL ECOSYSTEM

The pandemic has no doubt turbo-charged

Pivoting to a digital-first mindset that

LET’S TAP INTO CONTACTLESS and merchants alike, we also recently

As consumers move online and businesses get

PARTNERSHIPS ARE CRUCIAL TO THE We are also supporting large organizations in

Remo Giovanni Abbondandolo

BEST PRACTICES TO LAY A WINNING Visit Checkout.com to learn more

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