Today I came across this article on AMEinfo about the rise of internet shopping in the Middle East over the past few years and the role of certain retailers within the online shopping environment. They mention that online shopping options are the main catalyst for a 300% growth of e-commerce in the past year – could this be down to changing opinions towards epayments in the Middle East?
The chief executive of Souq.com, a leading online retailer, says that consumers are adapting to the internet and ecommerce is now worth around $3bn in the region, the UAE having the highest percentage of online shoppers.
Whilst certain large retailers failed to flourish in the region such as Living Social, some start up companies have been a big success such as the retailer Jado Pado who wanted to create an Amazon like experience fore consumers in GCC countries. Their key to success? Not treating the GCC countries as a homogenous market- each market needs to be treated slightly different to appeal to consumers on a local level.
Another point raised is the fact that cash on delivery is very popular in the Middle east but it could be time for that to change – payment giant PayPal are setting out to double their ME activity in the next 3 years and with already over 1 million customers in the region, their takeover could be massive.
So how do you see the potential of the payments market evolving over the next few years? And are you going to be a major player?
Click here to find out what we have planned for Cards and Payments Middle East 2013.