In a new study showing a changing digital landscape, customers in the Middle East and North Africa (Mena) are increasingly making digital payments, leading to a decrease in the use of cash in-store and an uptick in online retail sales. The report, titled “Leading Trends in Digital Payments: Driving the Real-Time Economy in Mena,” sponsored by Amazon Payment Services, outlines key trends that are important for businesses looking to enhance customer service and increase revenues. This study is part of the re:Imagine Payments thought leadership forum, designed to provide insights to merchants and individuals interested in digital payments.
According to Peter George, Managing Director of Amazon Payment Services in Mena, digital payment enhancements are crucial for businesses in the region. The report reveals that 81% of businesses believe that faster payment transactions would lead to increased revenues. Fast checkout and payment completion are also deemed important by 83% of executives as factors in building customer loyalty. With a significant percentage of businesses projecting growth of more than 20% by 2024, digital payment innovations are essential for sustainable success and staying competitive in the market.
The report identifies the top five drivers of change as predicted by executives, including the introduction of bank accounts linked to national identity, the growing use of digital wallets, better payment experiences, payment fraud reduction, and enhanced biometric authentication. These trends are expected to play a major role in shaping business and customer payment decisions in the next five years, highlighting the importance of staying up to date with evolving payment technologies and practices.
One of the leading trends highlighted in the report is the rise of omni-pay advances, driven by governments and fintech companies, offering diverse payment options like open banking, stable coins, and central bank digital currency. Fintech innovation and payment fragmentation are rated as top drivers of change by executives, with 89% stating they engage with fintechs to improve payments for their businesses. The real-time economy driven by digital technology is rated as the top consumer driver of change, emphasizing the need for immediate access to goods and services.
Security is a critical aspect that businesses need to prioritize when adopting new payment methods. The report emphasizes the importance of robust security measures, including biometric authentication and data privacy, to earn customer trust. Regulators and payment providers play a crucial role in ensuring the implementation of secure payment methods to build confidence among businesses and customers alike. Additionally, the report highlights the growing importance of AI adoption in payments, as new technologies enhance payment efficiency and personalization, including immersive shopping experiences with augmented reality technology.
In conclusion, the report underscores the importance of five building blocks for payment strategies: trust, choice, experience, behavioral change, and sustainability. These elements are crucial for businesses to navigate the complex and evolving landscape of digital payments in Mena and adapt to the changing needs and preferences of customers. By staying informed about leading trends and embracing innovative payment technologies, businesses can position themselves for success and continued growth in the digital payment ecosystem.
