May 26

Press Release: Impact of COVID-19 on the Online Payment Methods Market in the Middle East & Africa

According to the report, cash on delivery was the leading payment method preferred by online shoppers in Saudi Arabia, Jordan, Egypt, Morocco, Kenya, and other countries in this region, as of 2019. The COVID-19 outbreak in early 2020, however, is changing this perspective, with online shopping platforms and regulators encouraging the use of cashless payment means during the pandemic. Their efforts are already showing results, as close to two-thirds of respondents to an April 2020 survey reported having reduced their use of cash since the outbreak. Mobile money, card, and contactless payments are among the payment methods that are benefitting from consumers turning their backs on cash.

Fintechs are booming in the region

Africa and Middle East’s FinTech companies are contributing to the rise of digital payments across the region, with the help of millions of dollars raised during 2019, as the report shows. Some of the stars of the investment rounds include Interswitch and Opay in Nigeria, Tala in Kenya, and Dubai-based Network International which listed its shares on the London Stock Exchange at the beginning of 2019. Furthermore, Kenya’s mobile money service M-Pesa is making a major contribution to the development of mobile payment transactions during the COVID-19 outbreak.

Photo courtesy of rawpixel.

Source: Press Release (link opens in a new window)

Coronavirus, Finance, Technology
digital finance, digital payments, e-commerce, fintech