With e-commerce rising globally, the Emirates and its neighbours in the Middle East witnessed consumers shifting towards online shopping and contactless payments, in their bid to ensure social distancing. Leading e-tailer Amazon took notice of this trend, and has jumped on the bandwagon with tech majors like Apple, Alibaba and Samsung, to launch its own payment app in the MENA region.
The app lets sellers receive money using both local and global payment methods. Consumers can also opt for buying products on installment, and vendors get to track payment performance in real time.
Amazon Payment Services is a rebranded version of regional payment app Payfort, which was added to Amazon’s cart along with e-commerce firm Souq, three years back. The e-commerce powerhouse has also joined hands with local lenders including Mashreq, First Abu Dhabi Bank and Al Rajhi Bank, in addition to card services MADA and Meeza.
Beyond online shopping, the payment app will also boost hotel bookings and transactions for key sectors including travel, insurance and real estate. Amazon’s entry in the Middle East’s online payment market coincides with the post-covid era when 49% Emiratis are spending more on online shopping.
Neighbouring Saudi Arabia has already surpassed its e-payment target for 2020, with digital exchanges accounting for 37% of its total transactions.
Dubai also launched its own platform Empay, which allows residents to pay for government and public services, as part of UAE’s bet on fintech for contactless payments. The app also offers credit for users to make hassle-free payments, without any paperwork.
The entire region is experiencing this tech-friendly transformation in consumer behaviour, and Bahrain’s went on to record a whopping 367% rise in online transactions this year.
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