Today's Edition
LAMEES OBEIDAT (ABU DHABI)
Seventy-four per cent of executives in the Middle East and North Africa (MENA) region expect that artificial intelligence (AI) will help predict customers preferred method of payment, according to a new report titled “Leading Trends in Digital Payments: Driving the Real-Time Economy in MENA.”
The report, released by Amazon Payment Services, a leading digital payments provider in the MENA region, sheds light on the transformative trends reshaping the digital payment ecosystem and delves into key insights crucial for businesses aiming to enhance customer experiences and drive sustainable growth in the ever-evolving landscape of digital payments.
The report, drawing on extensive data and insights from over 100 industry executives across the UAE, Saudi Arabia and Egypt, highlights the critical importance of digital payment enhancements for businesses in the region. A staggering 81% of businesses surveyed believe faster transactions would directly translate to increased revenue. This aligns with the reality of busy customers who may abandon lengthy checkout processes. Recognising this, 83% of executives acknowledge the importance of fast and easy payment completion in building customer loyalty. With nearly a third of businesses projecting significant growth (over 20%) in 2024, digital payment innovations have become a key factor for sustainable success in this dynamic landscape.
The report further reveals that the top five predicted drivers of change include the introduction of bank accounts linked to national identity, the growing utilisation of digital wallets (87% of the executives surveyed said they were becoming the preferred way for customers to pay), enhanced payment experiences (59% of executives would like to advance social commerce), fraud reduction, and improved biometric authentication.
In an exclusive statement to Aletihad, Peter George, Managing Director of Amazon Payment Services in MENA, commented on the report and said: “In today's dynamic landscape, the region’s digital payment arena stands at the crossroads of innovation and opportunity. Our latest report, ‘Leading Trends in Digital Payments: Driving the Real-Time Economy in MENA,’ encapsulates this, offering a roadmap for businesses navigating the complexities of a rapidly evolving market.
As we delve into the findings from the research conducted by Davies Hickman Partners, it becomes evident that the convergence of technology and consumer behaviour is reshaping the way transactions occur, making way for a new phase of possibilities and growth."
The report identifies four key trends that will reshape how businesses and consumers approach payments in the coming years, creating a more interconnected and secure financial ecosystem.
Omni-Pay Advances
Driven by governments and fintech companies, a wider array of financing options is emerging. These options cater to the real-time economy's demand for instant services, providing diverse payment solutions that meet immediate needs.
Experience uplift
The desire for immediate access to goods and services underscores the importance of improved payment interactions. Digital wallets are perfectly aligned with this consumer demand, emerging as the preferred mode of payment due to their convenience and speed.
Security centricity
Security is a top priority as new payment methods emerge. The report emphasises this with a survey highlighting that a significant portion of executives (68%) believe building customer trust is key to adopting new payment technologies. Earning that trust hinges on robust security measures, particularly biometric authentication and data privacy. Furthermore, nearly half (48%) of executives acknowledge data privacy concerns as a major factor in the coming years.
Adapting to AI
AI-driven innovations hold the potential to significantly improve efficiency and personalise the payment experience. The report delves deeper, revealing that 72% of executives believe AI will aggregate data and help organisations make better decisions. Additionally, 67% of executives believe that AI will enable better fraud monitoring, further solidifying its role in revolutionising the payment landscape. This paves the way for immersive shopping experiences that cater to individual customer preferences.
