Middle East Online Payment Methods


Know the Benefits: Types of Middle East Online Payment Methods

The Middle East is quickly developing into a digital-forward marketplace, as more people begin to adopt digital online payment methods to accomplish their daily wants and needs. While approximately 50 per cent of payments for online purchases were still done by cash on delivery as of 2015, there are countries in the Middle East and North Africa that are slowly adopting online payment methods for their purchases.

According to research, majority of purchases and online transactions in South Africa were paid with credit or check card. Another rising market is Morocco, online credit card payments are growing in market share, even though cash on delivery is still the most preferred mode of payment.

In addition to using credit cards, another mode of payment that is gaining public usage and acceptance in the MENA region is mobile phone payments. In Africa, this is compounded by the fact that there are very few banking machines available, while mobile phones are proliferating across communities. Kenya leads the region in the usage and adoption of this online payment method, with over 66 per cent of the local population opting to use mobile payment for online transactions in 2015. The market share of mobile payment also grew at triple-digit rates in Nigeria throughout the same period.

As payment methods become more diversified across the region, it is helpful to take note of the benefits of each one to determine which suits your needs.

Using Debit Cards

  • Convenience – allows customers the convenience of not having to carry cash
  • Widespread acceptance – most merchants accept debit card payments
  • Prevents overspending – your spending is limited to the amount you have in your debit card account
  • Immediately available for most checking and savings accounts – no more lengthy application period

Using Mobile Phones

  • Versatility – could be used as a digital wallet, storing coupons, vouchers, loyalty points, and credits
  • Record keeping – easily keep extensive history of purchases, without worrying about losing receipts
  • Security – does not use the same security credentials for every purchase, making in-person credit card fraud more difficult
  • Combining accounts – allows you to pool resources from different bank accounts

Using Credit Cards

  • Cash back benefits – offers the opportunity to give 1 to 5 per cent cash back on purchases
  • Frequent flyer miles – lets you earn flyer miles for every dollar spent
  • Safety – does not take any money from your account in the case of a credit card fraud
  • Widespread acceptance – most merchants accept credit card payments

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