Visa predicts that businesses and consumers will continue to embrace digital financial services, with multi-channel strategies and integrated commerce becoming more common
Payment giant Visa has released its 2021 payment predictions for the Middle East, where it predicts next year as the year of digital payments.
The company states “a distinct evolution in credit benefits”, moving from mainly travel-centric offerings to more everyday items, as well as an increase in “buy now, pay later” schemes.
Consumer expectations for speed, flexibility and convenience will be further satisfied with growth of online installments
We can already see this with some ecommerce companies providing installments not only for large items, but for large carts of different products as well. Buy now and pay later has been a popular choice of payment in Africa for years.
Visa predicts that businesses and consumers will continue to embrace digital financial services, with multi-channel strategies and integrated commerce becoming more common.
Due to the record demand for ecommerce due to the pandemic, the need for companies to provide online shopping options and new forms of delivery has become essential and less of a trend for younger consumers.
The report also notes that governments have also fast-tracked contactless options for public services.
In Egypt, Finance Minister Mohamed Maait announced in November that the government intends to connect the country’s tax, customs, and real estate tax services electronically by summer 2022, and the government continues to push e-payment nationwide.
It states that digital payments will continue to grow, predicting it will become the default way to pay. The report continues on to state “point-of-sale payments and financing platforms will each undergo major transformation to ensure digital-first options are the option, as well as a rise in digital wallets becoming a preferred method for consumers to make purchases”.
It adds that Egypt’s limits on PIN-free contactless transactions have doubled since the start of the pandemic that allows consumers to tap-to-pay for larger purchases, with the adoption of tap-to-pay increasing on a monthly basis this year.
The report ends with how businesses will develop their response to fraud activities and e-payment security, stating “given the shift to online-first offerings, small businesses will also need to take note” in terms of fraudsters abusing lack of authentication options and other opportunities left open by unprepared businesses.
