Most used payment methods in e-commerce in MEA in 2023, with a forecast for 2027

By 2027, debit cards, credit cards, prepayment, and cash-on delivery are expected to be less popular methods for online e-commerce payments in the Middle East and Africa. On the other hand, digital wallets, including mobile money, and account-to-account transfers are all expected to increase their share of the online payments market. Digital wallets Digital wallets are applications on connected devices like computers and mobile devices which store payment information from credit cards, debit cards, and even bank details. Popular services include Apple Pay, Google Pay, and PayPal. By 2026, these three services are expected to make up more than half the total value of e-commerce payments worldwide. Additionally, some e-commerce platforms in the region have launched their own digital wallets, such as JumiaPay in Africa and NoonPay in the United Arab Emirates. These digital wallets not only facilitate online payments, but also incentivize shoppers with exclusive offers, and rewards to shop on their platform. E-Commerce in the MEA E-commerce is a fast-growing industry worldwide, but relative to the rest of the world, the Middle East and Africa have a lot more potential for growth. In 2019, there were over 500 e-commerce funding deals concluded in the Middle East and North Africa. Amazon.sa (formerly Souq.com), Jumia, and Noon are some of the biggest players in the region. The e-commerce market size of the top three countries in the MENA region alone were expected to be worth over 10 billion U.S. dollars each. The increasing adoption of smartphones in the region has been a key factor in the rise in e-commerce penetration. Furthermore, e-commerce companies are better able to target products to customers through native mobile apps since they provide important analytics and user behavioral data.