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Middle East & Africa Online Payment Methods Market, 2021

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  • 74 Pages
  • July 2021
  • Region: Africa, Middle East
  • yStats GmbH & Co. KG
  • ID: 5368082

Electronic and Mobile Payments in the Middle East & Africa Witnessed an Increase in Adoption and Value

“Middle East and Africa Online Payment Methods 2021” provides insights into the current state and future trends of the online payment market in the Middle East and Africa. Among other findings, the publication reveals that even after the removal of social isolation measures, consumers planned to continue using mobile phones/smartphones for shopping.

It takes into account a wide definition of online payment, including payment methods used in online shopping and mobile payment, such as remote and proximity payments. In addition, information related to the impact of the coronavirus (COVID19) on digital payments in the Middle East, Africa, and worldwide was included in this report.

E-payments worldwide gained momentum, especially after the onset of COVID-19, encouraging consumers to adopt and learn more about them

Online payments and alternative to cash are gaining momentum in the world, even more progressively after the onset of the pandemic in 2020. Among the top common payment methods in the world remain credit and debit cards. QR codes, which had been growing in acceptance globally, were projected to decline in usage frequency due to the acceleration of features such as card acceptance via NFC smartphones that are now easier to adopt. Another payment form that is gaining momentum presently is cryptocurrency. A recent survey cited in this report revealed that a significant share of young consumers became more open to this new currency in 2021 compared to the previous year and over 70% of them are ready learn more about it.

Consumers in the Middle East and Africa steadily increased their usage of online payments and acceptance of emerging payment forms grew

The Middle East and Africa’s online payment industry has accelerated since the beginning of 2020. One of the major drivers was the COVID-19 pandemic. Consumers in the region were open to adopting digital payments and even trying new emerging ones such as cryptocurrency, biometrics, QR code and others, since these are fast, secure and contactless. Many surveyed consumers opted for using cryptocurrency more than they did last year. In addition, even after the removal of social distancing/social isolation measures, most shoppers still preferred to use mobile phones/smartphones to purchase.

Overall, a considerable portion of consumers from UAE chose online payments because they believed these help them save money. Whereas, in Israel, online shopping was preferred due to lower risks of COVID-19 infection in 2020. Generally, in the countries of the two regions, card and mobile payments dominated. Namely, in South Africa and Egypt, the value of card payments was expected to grow steadily in the next several years. In Egypt, the number of electronic cards increased considerably from December 2017 and exceeded 40 million in December 2020.

In Morocco, local card payments prevailed foreign card payments. The value of digital transactions via Moroccan cards rose to over MAD 4 billion (about EUR 400 million) in the first 9 months of 2020, while online payments value with a foreign card declined from 2019 and reached slightly above MAD 225 million (over EUR 21 million) in the first 9 months of 2020. Mobile payments also grew in acceptance in the two regions. Namely, in Jordan the transaction volume made via a mobile payment system increased in 2020 and was over 1 million in December 2020. Whereas in Kenya, the number of mobile payments continued to grow annually and equaled over 60 million at the beginning of 2021.

For this report, the purchase of an Enterprise license allows up to ten worldwide users of an organization access to the report

Table of Contents

1. Management Summary
2. Global Developments
  • Value of Digital Wallet Spending, in USD trillion, 2020 & 2025f
  • Number of Digital Wallet Users, in billions, 2020 & 2025f
  • Value of Mobile Commerce Transactions, in USD trillion, 2020 & 2025f
  • Cash Usage in Emerging Markets, by Countries, in % of Total Transactions Volume, 2010 & 2020e
  • Cash Usage in Mature Markets, by Countries, in % of Total Transactions Volume, 2010 & 2020e
  • Share of Contactless and E-Commerce Payments, in % of Total Digital Wallet Spend, 2025f
  • Number of QR Code Payment Users, in billions, 2020e & 2025f
  • Share of QR Code Payment Users, in % of All Mobile Phone Users, 2025f
  • Value of Instant Payments, in USD trillion, 2020e & 2025f
  • Share Instant Payments, in % of Total B2B and Consumer Digital Money Transfer and Banking Payments Value, 2025f
  • Value of Mobile Payment Transactions Authenticated via Biometrics, in USD trillion, 2020 & 2025f
  • Share of Adults Who Expected Digital Payment Options being Offered When Shopping In-Person, in %, and Particular Digital Payment Options Expected, in % of Adults, November 2020
  • Breakdown of Blockchain Usage Cases, in %, 2021e
  • Top Online Payment Methods, in % of Respondents, August 2020
  • Top Payment Methods Consumers Consider Using In the Next Year, in % of Consumers, March 2021
  • Top Payment Methods Available, by B2C and B2B, in % of Payment Decision-Makers, 2020
  • Share of Mobile Commerce Transaction Value, in % of Overall E-Commerce Transaction Value, 2021e & 2025f
  • Share of QR Code Payments, in % of All Digital Wallet Transactions, 2020 & 2025f
  • Perception of Cryptocurrency, in % of Millennial Consumers, March 2021
  • Top Payments Methods For Fraud Actions, in % of Fraud & Payment Professionals, August 2020
  • Value of Losses Due to E-Commerce Fraud, in USD billion, 2020 & 2021e
  • Number of Users Making Online Payment With Facial Recognition, in billions, 2020 & 2025f
  • Number of Users Who Will Be Confirming Transactions With Voice Recognition, in millions, 2020 & 2025f

3. Middle East & Africa
3.1. Regional
  • COVID-19 Impact on Online & Mobile Payment, July 2021
  • Share of Adults Who Plan to Use Cryptocurrency as a Payment Method in the Next Year, in %, March 2021
  • Share of Adults Who Were More Open to Using Cryptocurrency Than a Year Ago, in %, March 2021
  • Share of Adults Who Would Avoid Businesses That Don’t Accept Electronic Payments, in %, March 2021
  • Share of Adults Who Prefer to Shop More at Omnichannel Businesses, in %, March 2021
  • Change in Usage of Shopping Channels When Social Distancing/Social Isolation Measures Are Removed, in % of Respondents, 2020
  • Overview of Mobile Money Statistics, incl. Number of Live Services, Registered Accounts, in millions, Active Accounts, in millions, Transaction Volume, in millions, & Y-o-Y Growth, in %, by Sub-Region, 2020
  • Total Investment Raised by African FinTech, in USD million, 2019 & 2020e
  • Breakdown of Funds Invested in Equity-Funded Verticals, in % of Total, 2020

4. Middle East
4.1. UAE
  • Share of Consumers Who Claimed That Digital Payments Help Them Save Money, in %, March 2021
  • Share of Consumers Who Use Cards or Digital Wallets to Pay Online, in %, 2020
  • Breakdown of Perceived Online Purchases’ Frequency Change after COVID-19, in % of Merchants with an E-Commerce Platform, 2020
  • Average Spend per Online Payment Transaction, in USD, May 2017 - April 2018, May 2018 - April 2019 & May 2019 - April 2020

4.2. Saudi Arabia
  • Share of Adults Who Considered Using Emerging Payments, in %, March 2021
  • Top Emerging Payment Methods To Be Used in the Next Year, in % of Adults, March 2021
  • Top Selection Criteria When Choosing Online Shopping Platform, in % of Consumers, August 2020

4.3. Israel
  • Top Financial Transactions Performed on Payment Platforms via a Smartphone, in % of Adults, 2018, 2019 & 2020

4.4. Jordan
  • Volume of Transactions Made via Mobile Payment Systems, in millions, March 2020 - December 2020
  • Share of Transactions via Mobile Payment Systems, by Type, in % of Total Transactions, 2020
  • Year-on-Year Change of the Transaction Volume Via Mobile Payment Systems, in %, January 2020 - December 2020

5. Africa
5.1. South Africa
  • Value of B2C E-Commerce, in ZAR billion, 2018 & 2020
  • Card Payments Value, in ZAR trillion, and Year-on-Year Change, in %, 2016 - 2024f
  • Share of Consumers Shopping More Online Since the COVID-19 Onset, in %, November 2020

5.2. Egypt
  • Volume of Electronic Transactions, in millions, March 2020 & October 2020
  • Volume of Electronic Payment Cards, in millions, December 2017 & December 2020
  • Number of Debit and Credit Cards, in millions, December 2017 & December 2020

5.3. Nigeria
  • Electronic Payment Transactions, incl. Number, in millions, and Value, in NGN billion, by Type, August 2020

5.4. Morocco
  • Value of Electronic Banking Transactions, in MAD billion, and Volume, in millions, First 9 Months of 2019 & First 9 Months of 2020
  • Breakdown of Card Payments, by Category, in % of Total Volume, September 2020
  • Value of Online Payments via Moroccan Cards, in MAD billion, and Volume, in millions, H1 2019 & First 9 months of 2020
  • Value of Online Payments via Foreign Cards, in MAD billion, and Volume, in millions, H1 2019 & First 9 months of 2020
  • Number of Online Payment Transactions, in millions, and Value, in MAD million, by Transactions with Moroccan Cards, Foreign Cards and Total, 9 months 2017 - 9 months 2020

5.5. Kenya
  • Mobile Payment Statistics, incl. Number of Transactions, in millions, Value of Transactions, in KES Billion, Number of Accounts, in millions, and Number of Agents, in thousands, 2015 - 2020 & Jan - Apr 2021

Companies Mentioned

A selection of companies mentioned in this report includes:

  • American Express
  • Apple Pay
  • Google Pay
  • Klarna
  • PayPal