Ecommerce to nearly double; set to reach $13.4bn by 2020

Dubai - 12 May 2015 - PAYFORT, the Arab world's leading online payment gateway and payment solutions provider, is proud to announce the release of its groundbreaking annual report, "State of Payments in the Arab World" at the Ecommerce Show Middle East 2015 in Dubai.

"By getting the opinions of hundreds of merchants who interact with consumers on a day-to-day basis, we have created a report is full of consumer-centric data that will help you understand market behavior in payments and ecommerce," said Omar Soudodi, Managing Director of PAYFORT.

The second section of the report focuses on Entertainment and Events, Marketplace Services, and Ecommerce in general, including vital data on acceptance rates, chargeback ratios, the volume and size of current transactions, and demographics.

After surveying hundreds of merchants and thousands of consumers in the UAE, KSA, Egypt, Kuwait, Lebanon, and Jordan, PAYFORT anticipates that Events and Entertainment will generate an additional $75 million than 2014's revenue of $125m, creating more than $200m annually for the region by 2020. Merchants that sell physical products online such as electronics, clothes and white goods constitute the second largest ecommerce sector in the region, generating $7bn in 2014. PAYFORT anticipates that in the next five years this market will almost double, growing in size to $13.4bn by 2020.

Outside of the larger ecommerce markets, PAYFORT also examined smaller ecommerce sectors including classifieds, listings, services and other non-physical products sold online, dubbed "Marketplace Services." While market size for such a wide swath of services is near impossible to calculate, PAYFORT accurately calculated the transaction size and volume for 2014.

In surveying more than four thousands of online buyers across the UAE, KSA, Egypt, Jordan, Lebanon and Kuwait, PAYFORT gathered significant insights on the demographics of customers who utilize ecommerce. PAYFORT found that ecommerce is generally dominated by Saudi Arabia and Egypt - the two largest population centers in the Arab World. Coming close behind these two countries is the UAE with its strong rate of internet penetration. PAYFORT anticipates that these three major markets will continue to drive change in the world of Arab ecommerce. While Egypt has the largest number of online buyers, the UAE and Kuwait have higher proportions of ecommerce customers per capita. 

Social networks play an increasing role in ecommerce, though no one network dominates the entire region. While Facebook rules Egypt and the UAE, Instagram and Twitter dominate Saudi Arabia. Surprisingly, PAYFORT found that Lebanon relies heavily on the professional network LinkedIn.

PAYFORT determined that with the exception of the UAE, men typically buy much more than women online across the region. PAYFORT recommends that Arab governments place more focus on bringing ecommerce to their populations.

Unsurprisingly, people aged 26-35 are the largest population of people who utilize ecommerce. However, what customers tend to buy online varies significantly by country. Unlike other regions where credit or debit cards are an essential part of ecommerce, the Arab World continues to prefer cash on delivery. This trend is particularly prevalent in Egypt, where 72% of consumers use cash for their ecommerce activity. Easy Installment payment plans are also a popular payment method in the region, with 56% of Online Travel Agents (OTAs) claiming them to be an integral part of their business.

PAYFORT found that acceptance ratios for ecommerce companies remain low as many startups begin without fully developed checkout pages. The largest challenges for online payments come from reliance on cash on delivery as a payment system, and high chargeback ratios.

The final half of PAYFORT's "State of Payments in the Arab World" will be released at the Ecommerce Show Middle East 2015, which runs from May 12-13 in Dubai.

The report's analysis is derived from the markets in which PAYFORT operates. The report is available at no cost for those who register at www.stateofpayments.com

About PAYFORT
PAYFORT makes online payments safe and secure for buyers and sellers in the Arab world, delivering a complete suite of payment solutions that cater to the needs of the region and are tailored to Arab online buying habits and trends. PAYFORT serves the needs of online shoppers on a global basis through its trusted, secure payment network that gives everyone the opportunity to shop online safely and easily.

PAYFORT builds trust between buyers and online sellers by enabling consumers to transact online using the payment options they prefer with complete security and peace of mind while supporting the most popular payment methods available globally.  By eliminating the risks associated with online transactions for consumers, PAYFORT enables more companies to sell online while increasing sales opportunities by establishing consumer confidence for its guaranteed transactional security.

For more information on PAYFORT, please visit: www.payfort.com

For press inquiries, please contact:
Adel Elbendary 
Fourth Dimension Public Relations
14 Syria St., Mohandseen, Cairo, Egypt
Mobile : +97155 680 7439
Tel: (+202) 3760 9988
Mobile: +20122 212 3462
Email :adel@fdpr.net 

May AbdelHamid
Fourth Dimension Public Relations
14 Syria St., Mohandseen, Cairo, Egypt
Tel: (+202) 3760 9988
Mobile: +20122 133 0222
Email : may@fdpr.net 

© Press Release 2015