As per the Industry Experts, the MENA territories E-commerce arena accomplished at least six years of digital progression with complete paradigm shift for the clients to be online with the pandemic fast-tracking that development.
The lead delegates present within the E-commerce Summit for the Mena territory pooled in their estimates for future E-commerce trends in Mena territory. Its basic role played within trade recovery as well as future expansion of national economies.
The event that was hosted out by VISA as well as held virtually with the theme, ““Thriving In The New Normal”, that was brought together by the government representatives from Dubai Economy (Dubai DED) and Saudi Ministry of Finance, native banks like Commercial Bank of Qatar, businesses including Noon, Daraz (Alibaba Group), Azadea Group and Kidzapp, and payment platform providers for exploration of prospects for further powering up the digital commerce as well as aiding the trade thriving within the new normal.
A survey as published via the Dubai Economy, the Dubai Police as well as VISA within the June 2020, it stated that since the advent of Pandemic outbreak, the majority (61%) of UAE clients preferred card based online payments as well as digital wallets over cash on delivery (COD).
A similar survey done through Saudi Payment and Visa discovered that 62% of Saudi clients opted for the card and digitalized wallets to pay as a substitute for COD. The Kuwait Banking Association as well as Visa survey disclosed 51% of Kuwait clients utilized cards and digital wallets over COD.
The panel negotiations emphasized the mainstream emergence of integrated commerce and the critical balance retailers will need to discover between E-Commerce and commerce IRL (in real life) to distribute the ultimate client knowledge.
Visa’s Back to Business Holiday Study in 2020 noticed that 45% of the clients polled in the UAE intend to do more than half of their shopping online while 34% plan to shop mostly in store or IRL. Panellists communicated their practices on new frictionless combinations merchants can create as part of their offerings such as curb side pickup and different contactless transfer options.
Madhur Mehra, MENA Head of Merchant Sales and Acquiring at Visa, stated that: “While most of 2020 was spent in reactive mode, the resulting preference for eCommerce is lasting. E-commerce leaders from the merchant community and financial institutions are in the driving seat in 2021 to capitalize on the momentum and continue to explore new technologies and innovations to support their customers.”
“Small businesses now have the opportunity to develop digital existence of their business and develop the reach and sales not just to recover sooner but also secure future expansion by investing in new digital technologies. Our investigations show that merchants who adopted E-commerce in 2020 or invested in digital payment solutions were able to improve as well as endure the influence of the catastrophe than those that did not.”
He also further stated that: “They work closely with the industry, leveraging Visa’s expertise, innovative digital solutions and analytics, to support them in understanding consumer behaviours and expectations. By collaborating with our panel of experts we continue to foster a supportive ecosystem for businesses to unlock new commerce opportunities and develop low-touch commerce solutions.”
CEO of Commercial Compliance & Consumer Protection (CCCP) sector, Dubai Economy, Mohammed Ali Rashed Lootah, stated: “A significant component of the paradigm shift in client behaviour we have been witnessing in Dubai over the past few months is a growing trust in cashless payments and buying online. Though powered largely by Covid-19 this shift has also proven to be one of the infinite and innovative opportunities Dubai estimated its transition to a Smart City to bring forth.”
Point-of-sale payments and financing platforms are anticipated to experience foremost transformation to confirm digital-first possibilities getting as a preferred option, and utilization of digital wallets is also a mounting trend for 2021, with the diverse modes demonstrating tremendous probability across sectors that typically relied on in-person transactions.
“As the pandemic belted Dubai Economy spared no effort in reassuring clients to shop safe, and in boosting their belief in the purchasing process, while also safeguarding firms and empowering them to stay associated with their clients. In fact, everyone in Dubai and across the UAE, including the government and the native as well as global private sector, work in partnership to present a profitable and evolving digital solution to an exceptional catastrophe, and the outcome is a fast-tracked transition towards a digital economy.”
“Dubai Economy is delighted to have Visa as our partners in promoting E-commerce as a competitive and convenient alternative, and we look forward to co-creating solutions that would empower Dubai and its community of residents and shoppers to thrive in the new normal,” he added.