Latest News
Checkout.com’s 4th annual MENA report finds cash on delivery usage halved, amongst maturing digital economy
- 658% growth in regional payment volumes since 2020, with a 78% YOY increase
- 180% growth in consumers shopping online at least once a week in Saudi Arabia and 140% in UAE and Kuwait
- Preference for cash on delivery in the region halves from 41% in 2020 to 20% in 2023
- 33% of MENA consumers report they’ve been a victim of payment fraud
- Third of all MENA shoppers would shift to a competitor website following a single failed payment
DUBAI, UAE, May 14, 2024 /PRNewswire/ — Amidst an era marked by swift digital transformation, the digital economy in the MENA region demonstrates robust growth, soaring by an impressive 78% year-on-year in digital payment volumes since 2020. These revelations and more are unveiled in Checkout.com’s 4th annual MENA e-commerce report, titled: “The state of digital commerce in MENA 2024, A tale of rapid, sustained growth,” launched this morning.
48 months of exponential growth
The report highlights unprecedented growth in the MENA region’s digital payment volumes, as Checkout.com’s total processing value witnessed a staggering 658% surge since the onset of 2020. Notably, a remarkable 78% year-on-year growth between 2022 and 2023. This surge is a testament to the region’s accelerated adoption of digital commerce, which continues to see a deepening consumer preference for online shopping.
Innovations such as AFT (Automated Funds Transfer) have played a pivotal role in facilitating this trend. Furthermore, the growth momentum of Checkout.com processing volumes is underscored by it securing its acquiring license in the UAE in 2023. As Checkout.com continues to expand, its trajectory mirrors the overall upward trajectory of digital commerce in the region
The findings also shed light on a robust increase of 56% in the number of MENA consumers engaging in e-commerce weekly or more since 2020. Furthermore, the growth rate for daily digital shoppers in MENA surged by 80% with Saudi Arabia leading the digital shopping spree with an astounding 180% growth in consumers shopping online at least once a week, followed closely by the UAE and Kuwait, each experiencing a 140% growth. This data underscores the deep and consistent change in online shopping habits among consumers in the region, which in turn demonstrates an increased trust in the system; a barrier to adoption noted in the 2020 report.
Additionally, the report highlights MENA consumers’ optimistic outlook on their future online spend, revealing that half of all shoppers anticipate an increase in their online spending over the next 12 months. Particularly, online shoppers in Saudi Arabia express significant enthusiasm, with 53% anticipating an increase in their spending in the coming year.
The increase in predictive spending demonstrates that there is resiliency and robustness to the digital economy in the MENA region. Despite increasing inflationary pressures and technical recessions breaking out across other developed economies, MENA presents an oasis of opportunity for global brands to expand and develop new operations in the market.
The unmistakable demise of cash
Discussing the payments landscape, the report marks a significant shift away from cash on delivery towards digital payment methods. Over the past 48 months, the preference for cash on delivery in the region has halved from 41% to 20%, reflecting broader acceptance and trust in digital payments, cards, and digital wallets. This shift is notably pronounced in countries like Saudi Arabia, UAE, and Kuwait, where the preference for cash has dropped to as low as 10% among the population.
This presents a unique chance for businesses to keep their costs down. With new technologically advanced payment solutions that present a more scalable and consumer-friendly experience. The previously increasing complexity and cost of operations, such as cash management and shipping logistics, for businesses in the region will continue to decline.
Payment security is the key loyalty driver
The report reveals that the number of respondents ranking payment security as the most important feature offered by an e-commerce business is growing exponentially. Furthermore, the silent revenue killer, namely false declines, continues to grow in the region with 23% reporting experiencing a falsely declined payment in the last three months. Moreover, 33% of MENA consumers report being victims of payment fraud, and understandably, security is valued. Alarmingly, a third of all shoppers surveyed indicated they would switch to a competitor’s website following a single failed payment.
Remo Giovanni Abbondandolo, General Manager, MENA, at Checkout.com, reflects on these findings: “The sustained growth and rapid evolution of digital commerce in MENA are reshaping how consumers shop and pay. Our report not only highlights the remarkable strides in digital payment adoption but also signals a growing confidence among consumers in the digital economy.
“This report makes a case for the continued need for fintechs to analyze and optimize every aspect of their e-commerce experience as consumers become more deeply connected to digital shopping and payments. As our report identifies, a third of all shoppers surveyed would switch to a competitor if they experienced a single failed payment. So the cost of getting your payment performance wrong has never been higher. That’s why as a payment solution provider to businesses across the region and globally, Checkout.com drives performance in this dynamic landscape,” he added.
As Checkout.com continues to chart the course of digital commerce in MENA, the “The state of digital commerce in MENA 2024, A tale of rapid, sustained growth” report offers invaluable insights for merchants, policymakers, and stakeholders aiming to capitalize on the opportunities presented by this digital evolution.
Checkout.com, a leading global payment solutions provider, has diligently tracked the booming e-commerce landscape in the region for the past four years. The latest report delves into a retrospective analysis of 48-month trends, calculating growth rates to grasp the magnitude of change in digital commerce within MENA.
About Checkout.com
Checkout.com processes payments for thousands of companies that shape the digital economy. Our global digital payments network supports over 145 currencies and delivers high-performance payment solutions across the world, processing billions of transactions annually.
With flexible and scalable technology, we help enterprise merchants boost acceptance rates, reduce processing costs, combat fraud, and turn payments into a major revenue driver. Headquartered in London and with 16 offices worldwide, Checkout.com is trusted by leading brands such as Alshaya Group, Botim, Dyson, Hunger Station, Instashop, Qlub, Majid Al Futtaim, Netflix, SHEIN, Sony and Tamara.
View original content:https://www.prnewswire.co.uk/news-releases/checkoutcoms-4th-annual-mena-report-finds-cash-on-delivery-usage-halved-amongst-maturing-digital-economy-302143689.html
Latest News
Corlytics Hires New CTO, Chief Data Officer, and Chief Tech Architect
Corlytics, a leading provider of regulatory risk intelligence solutions, has announced the appointment of three key executives: a new Chief Technology Officer (CTO), Chief Data Officer (CDO), and Chief Tech Architect. These strategic hires are set to bolster Corlytics’ capabilities and drive its mission to deliver cutting-edge regulatory risk intelligence.
The New Appointments
Corlytics’ latest appointments include highly experienced professionals who bring a wealth of knowledge and expertise to the company.
Key Appointments:
- Chief Technology Officer (CTO): The new CTO will oversee the company’s technology strategy, ensuring that Corlytics remains at the forefront of innovation in regulatory risk intelligence.
- Chief Data Officer (CDO): The CDO will be responsible for managing and leveraging data to enhance Corlytics’ solutions, providing clients with deeper insights into regulatory risks.
- Chief Tech Architect: The Chief Tech Architect will focus on the technical architecture of Corlytics’ platforms, ensuring scalability, reliability, and security.
Enhancing Regulatory Risk Intelligence
With these strategic hires, Corlytics aims to enhance its regulatory risk intelligence offerings, providing clients with more comprehensive and actionable insights.
Enhanced Capabilities:
- Advanced Analytics: Leveraging advanced analytics to provide deeper insights into regulatory risks and trends.
- Data Integration: Improving data integration capabilities to provide a holistic view of regulatory risks across various jurisdictions and sectors.
- Scalable Solutions: Developing scalable solutions that can grow with clients’ needs, ensuring they remain compliant in an evolving regulatory landscape.
The Importance of Regulatory Risk Intelligence
In today’s complex regulatory environment, effective regulatory risk intelligence is crucial for financial institutions and other regulated entities.
Key Benefits:
- Risk Mitigation: Identifying and mitigating regulatory risks before they materialize can save organizations from significant financial and reputational damage.
- Compliance Management: Enhancing compliance management processes to ensure adherence to evolving regulations.
- Strategic Decision-Making: Providing data-driven insights that support strategic decision-making and long-term planning.
Corlytics’ Strategic Vision
The new hires align with Corlytics’ strategic vision of becoming a global leader in regulatory risk intelligence, leveraging technology and data to transform how organizations manage regulatory compliance.
Strategic Goals:
- Innovation: Continuing to innovate and develop cutting-edge solutions that address the evolving needs of clients.
- Global Expansion: Expanding Corlytics’ presence in key markets around the world.
- Client Focus: Maintaining a strong focus on client needs, delivering solutions that provide tangible value and support regulatory compliance efforts.
Future Prospects
With the addition of the new executives, Corlytics is well-positioned to drive future growth and innovation in the regulatory risk intelligence space. The company plans to leverage its enhanced capabilities to expand its market reach and deliver even greater value to clients.
Growth Opportunities:
- Product Development: Developing new products and features that address emerging regulatory risks and challenges.
- Partnerships: Forming strategic partnerships with other technology providers and regulatory bodies to enhance Corlytics’ solutions.
- Market Penetration: Increasing market penetration by targeting new industries and geographic regions.
Conclusion
The appointment of a new CTO, CDO, and Chief Tech Architect marks a significant milestone for Corlytics. These strategic hires will enhance the company’s capabilities, driving innovation and delivering greater value to clients. As Corlytics continues to expand and innovate, it is well-positioned to lead the regulatory risk intelligence market and support organizations in managing their regulatory compliance challenges.
Source of the news: Fintech Futures
The post Corlytics Hires New CTO, Chief Data Officer, and Chief Tech Architect appeared first on HIPTHER Alerts.
Latest News
Instant Payments Regulation: Overview for Banks and Corporate Treasurers
The regulation of instant payments is becoming increasingly important as both banks and corporate treasurers seek to leverage faster, more efficient payment solutions. This article provides an overview of instant payments regulation, highlighting the key considerations and implications for banks and corporate treasurers.
What Are Instant Payments?
Instant payments refer to electronic payments that are processed in real-time or near real-time, enabling the transfer of funds between accounts within seconds. These payments can be initiated and completed at any time, providing convenience and efficiency for both individuals and businesses.
Key Characteristics:
- Speed: Funds are transferred almost instantly, reducing the time taken for payment settlement.
- Availability: Instant payments can be made 24/7, including weekends and holidays.
- Irrevocability: Once initiated, instant payments cannot be reversed, ensuring finality of the transaction.
Regulatory Landscape
The regulation of instant payments varies across different jurisdictions, with a focus on ensuring security, efficiency, and interoperability of payment systems.
Key Regulations:
- EU Regulation on Instant Payments: The EU has implemented specific regulations to promote the adoption of instant payments, ensuring that payment service providers offer these services to customers.
- PSD2: The Second Payment Services Directive (PSD2) in the EU includes provisions that support the development and regulation of instant payments.
- Local Regulations: Various countries have their own regulations and guidelines to govern instant payments, focusing on aspects such as fraud prevention, consumer protection, and technical standards.
Implications for Banks
Banks play a critical role in the provision of instant payments and must navigate the regulatory landscape to ensure compliance and provide seamless services to customers.
Key Considerations for Banks:
- Compliance: Banks must comply with relevant regulations and guidelines to offer instant payment services. This includes adhering to technical standards and implementing robust security measures.
- Infrastructure: Investing in the necessary infrastructure to support real-time payment processing and ensure system reliability and availability.
- Customer Education: Educating customers about the benefits and features of instant payments, as well as any potential risks associated with their use.
Implications for Corporate Treasurers
Corporate treasurers can benefit significantly from the adoption of instant payments, which can enhance cash flow management and improve operational efficiency.
Key Considerations for Corporate Treasurers:
- Cash Flow Management: Instant payments can improve cash flow management by reducing the time taken for payment settlement and providing real-time visibility into account balances.
- Operational Efficiency: Faster payment processing can streamline business operations, reducing administrative burdens and improving supplier relationships.
- Risk Management: Corporate treasurers must be aware of the irrevocability of instant payments and implement appropriate controls to prevent fraudulent transactions.
Benefits of Instant Payments
The adoption of instant payments offers several benefits for both banks and corporate treasurers, driving efficiency and enhancing the customer experience.
Key Benefits:
- Convenience: Instant payments provide a convenient and efficient way to transfer funds, reducing the reliance on traditional payment methods.
- Cost Savings: Faster payment processing can reduce the costs associated with payment settlement and reconciliation.
- Enhanced Customer Experience: Offering instant payment services can enhance the customer experience, providing greater flexibility and speed in financial transactions.
Challenges and Future Trends
While instant payments offer numerous benefits, there are also challenges that banks and corporate treasurers must address to fully leverage these services.
Key Challenges:
- Security Risks: Ensuring the security of instant payments is critical, particularly given the speed and irrevocability of transactions.
- Interoperability: Achieving interoperability between different payment systems and networks is essential for the widespread adoption of instant payments.
- Regulatory Compliance: Navigating the complex regulatory landscape and ensuring compliance with relevant regulations can be challenging.
Future Trends:
- Increased Adoption: The adoption of instant payments is expected to continue growing, driven by regulatory support and customer demand.
- Technological Advancements: Advances in technology, such as blockchain and artificial intelligence, are likely to further enhance the capabilities and security of instant payments.
- Global Standardization: Efforts to develop global standards for instant payments will promote interoperability and facilitate cross-border transactions.
Conclusion
The regulation of instant payments is crucial for ensuring the security, efficiency, and interoperability of payment systems. Banks and corporate treasurers must navigate the regulatory landscape and invest in the necessary infrastructure to provide seamless and secure instant payment services. As the adoption of instant payments continues to grow, it offers significant benefits for enhancing cash flow management, operational efficiency, and the overall customer experience.
Source of the news: The Paypers
The post Instant Payments Regulation: Overview for Banks and Corporate Treasurers appeared first on HIPTHER Alerts.
Latest News
Regulators Issue Joint Warning on Bank-Fintech Risks
Regulators have issued a joint warning highlighting the risks associated with partnerships between banks and fintech companies. This warning underscores the need for careful management of these relationships to ensure regulatory compliance and mitigate potential risks.
Overview of the Joint Warning
The joint warning, issued by a coalition of financial regulators, emphasizes the importance of robust risk management practices when banks partner with fintech companies. These partnerships, while beneficial in driving innovation and enhancing customer services, also introduce new risks that must be addressed.
Key Points of the Warning:
- Regulatory Compliance: Banks must ensure that fintech partners comply with all relevant regulations and standards.
- Risk Management: Robust risk management frameworks must be in place to identify, assess, and mitigate risks associated with fintech partnerships.
- Data Security: Ensuring the security and privacy of customer data is paramount, particularly given the increasing prevalence of cyber threats.
- Operational Resilience: Banks must ensure that fintech partnerships do not compromise their operational resilience and ability to deliver critical services.
Benefits of Bank-Fintech Partnerships
Despite the risks, partnerships between banks and fintech companies offer significant benefits, driving innovation and enhancing the customer experience.
Key Benefits:
- Innovation: Fintech companies bring innovative technologies and solutions that can enhance banking services and products.
- Customer Experience: Partnerships with fintechs can improve the customer experience by offering faster, more efficient, and personalized services.
- Cost Efficiency: Fintech solutions can help banks reduce costs and improve operational efficiency through automation and digitalization.
Risks Associated with Bank-Fintech Partnerships
The joint warning highlights several risks associated with bank-fintech partnerships that must be carefully managed.
Key Risks:
- Regulatory Risk: Ensuring compliance with complex and evolving regulatory requirements is a significant challenge.
- Cybersecurity Risk: Fintech partnerships can introduce cybersecurity vulnerabilities, making it essential to implement robust security measures.
- Operational Risk: The integration of fintech solutions into banking operations can pose operational risks, particularly if not managed effectively.
- Reputational Risk: Any issues or failures in fintech partnerships can damage the bank’s reputation and customer trust.
Strategies for Managing Risks
To mitigate the risks associated with fintech partnerships, banks must adopt comprehensive risk management strategies and ensure rigorous oversight.
Key Strategies:
- Due Diligence: Conducting thorough due diligence on fintech partners to assess their regulatory compliance, security practices, and financial stability.
- Contractual Safeguards: Including robust contractual safeguards in partnership agreements to outline responsibilities, expectations, and compliance requirements.
- Continuous Monitoring: Implementing continuous monitoring and assessment of fintech partnerships to identify and address emerging risks.
- Collaboration with Regulators:: Engaging with regulators to ensure that partnerships comply with regulatory requirements and to stay informed of any changes in the regulatory landscape.
The Role of Technology
Technology plays a crucial role in managing the risks associated with bank-fintech partnerships, offering tools and solutions that enhance oversight and compliance.
Key Technologies:
- RegTech Solutions: Regulatory technology (RegTech) solutions can automate compliance processes, ensuring that fintech partnerships adhere to regulatory requirements.
- Cybersecurity Tools: Advanced cybersecurity tools and solutions can enhance the security of fintech partnerships, protecting against cyber threats.
- Risk Management Platforms: Integrated risk management platforms can provide real-time visibility into partnership risks and support proactive risk mitigation.
Conclusion
The joint warning issued by regulators highlights the need for careful management of bank-fintech partnerships to ensure regulatory compliance and mitigate potential risks. While these partnerships offer significant benefits, including innovation and enhanced customer experience, they also introduce new risks that must be addressed through robust risk management strategies. By leveraging technology and engaging with regulators, banks can effectively manage these risks and capitalize on the opportunities presented by fintech partnerships.
Source of the news: American Banker
The post Regulators Issue Joint Warning on Bank-Fintech Risks appeared first on HIPTHER Alerts.
-
Latest News6 days ago
China remains stabilizing force for global economic growth
-
Latest News4 days ago
Martello Re announces closing of $1.3 billion capital raise consisting of $935 million in equity and a $360 million upsize of the Company’s credit facility
-
Latest News5 days ago
Kylian Mbappé and Accor Forge Alliance to Empower Younger Generations
-
Latest News5 days ago
Market Dojo Celebrates Prestigious Inclusion in Ardent Partners 2024 Strategic Sourcing Technology Advisor
-
Latest News5 days ago
BioCatch completes best first half in company history, grows ARR by 43% YoY
-
Latest News2 days ago
Driving Innovation Forward: CFI Welcomes Seven-Time Formula 1™ World Champion Lewis Hamilton as new Global Brand Ambassador
-
Latest News5 days ago
COP28 President calls on all stakeholders to bring spirit of solidarity that delivered UAE Consensus to drive implementation and sustainable socio-economic development
-
Latest News2 days ago
KEYSTONE BANK HOLDS CUSTOMER FORUM, REITERATES COMMITMENT TO EXCELLENT SERVICE DELIVERY