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E-commerce spending in the UAE grows at twice the speed of point-of-sale (POS) transactions in Q1 2022 compared to the same period last year
According to Network International, the network is a major enabler of digital commerce in the Middle East and Africa (MEA).
Growth in online spending, including debit and credit card transactions, was led by digital payments in the government sector, followed by restaurants, supermarkets and convenience stores, which accounted for more than 45% of total spending.
As the largest merchant acquirer in the UAE and the largest payment solutions company in the MEA region, Network International’s platform provides comprehensive insight into all payment transactions within a business, while giving merchants the agility to build an unparalleled customer experience and increase acceptance.
Card consumption
Overall card spending in the first quarter of 2022 saw double-digit growth over the same quarter in 2021 as demand for cashless payments accelerated amid the ongoing Covid-19 pandemic. The total number of cards for online transactions also climbed 32%, indicating a permanent shift in post-pandemic consumer behavior and higher reliance on digital commerce.
This growth was driven by low- and mid-value consumer cards, indicating a shift in payment behavior in segments that were previously dominated by cash transactions or moderate card spending. In addition, the number of debit cards transacted during the quarter was 1.5 times the number of credit cards. Additionally, spending by low- and mid-value spending credit cardholders is growing faster than spending by top spenders.
Online debit card spending in supermarkets also increased by 36% compared to a 20% increase in online credit card spending. The Network previously reported that UAE residents are spending more when shopping online in supermarkets than in stores following Covid-19 lockdown restrictions. Continuing this trend from 2020, average e-commerce card spending in supermarkets increased by nearly double digits, while POS spending remained unchanged. Meanwhile, debit card spending at brick-and-mortar supermarkets rose 5%, while credit card spending was flat.
turn to numbers
Ian Jiggens, Group Head of Consulting and Information Services at Network International, said: “As e-commerce sales continue to grow, it is clear that spending is growing not only from buyers switching from brick-and-mortar stores to online shopping, but also from buyers shifting more Shift from cash to numbers.
“Digital payments are at the forefront of some of the most interesting applications of new technology, and merchants need to prioritize the use of tools and data to help them continue to adapt to changing market dynamics. As the largest merchant acquirer in the UAE and a leading driver of digital commerce in the MEA region As a leader, the Network plays a key role in helping businesses transition to e-commerce to win in the new digital landscape.”- arab trade news agency
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