The story of a non-resident Bangladeshi family establishing and running the famed perfume company Al Haramain and its successful subsidiaries
E-commerce spending in the UAE grew at double the rate of point of sale (PoS) transactions in the first quarter of 2022 compared to the same quarter a year earlier, according to Network International.
The rise in online spending, which includes both debit card 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 per cent of total spend volumes.
With the accelerating demand for cashless payments in the ongoing Covid-19 pandemic, overall card spending in Q1 2022 saw a double-digit increase over the same quarter in 2021. The total number of cards transacting online also climbed by 32 per cent, indicating a permanent shift in consumer behaviour post-pandemic and higher dependence on digital commerce.
This growth was driven by low value and mid-value spending cards signalling a shift in payments behaviour among segments who previously primarily transacted in cash or where card spending was moderate.
Furthermore, the number of debit cards transacting during the quarter grew by 1.5x times the number of credit cards. Additionally, spending by low value and mid value spending credit cardholders increased at a higher rate than spending by the highest spending consumers.
Online debit card spending at supermarkets also grew by 36% in comparison to online credit card spends that grew by 20 per cent.
Network previously reported that UAE residents spent more when they did their supermarket shopping online after the Covid-19 lockdown restrictions, as compared to when they made their purchases at an outlet.
Continuing this trend from 2020, supermarkets witnessed a nearly double-digit jump in average card spending for e-commerce while PoS spending stayed the same. Meanwhile, debit card spending at physical supermarket outlets grew by 5 per cent, in comparison to credit cards for which spending volumes were flat.
“As e-commerce sales continue to rise, it is evident that the growth in spending is coming not just from buyers shifting from physical outlets to online shopping, but rather from buyers shifting more of their spending from cash to digital. Digital payments are at the forefront of some of the most interesting applications of new technologies, and merchants need to prioritise both the tools and the use of data to help them continue adapting to changing market dynamics,” said Ian Jiggens, Group Head, Advisory and Information Services, Network International.
— waheedabbas@khaleejtimes.com
The story of a non-resident Bangladeshi family establishing and running the famed perfume company Al Haramain and its successful subsidiaries
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