Magazine Button
Checkout.com Study: Consumers set to spend more online this Ramadan

Checkout.com Study: Consumers set to spend more online this Ramadan

CountriesIndustry VerticalsIntelligent TechnologyKSAMobileRetailTop StoriesUAE

A new survey from Checkout.com—a global payment solution provider—suggests there will be an even greater surge in online shopping during the upcoming Ramadan period.

Going into the Holy month, consumers in the UAE and Saudi Arabia have noted a strong inclination towards online shopping. From those polled 95% in the two countries say that they shop online, with 29% doing so weekly or even daily. That is largely consistent with an earlier Checkout.com report from September 2020 indicating that consumers’ embrace of online shopping is more of a long-term behaviour change rather than a temporary shift resulting from the COVID-19 pandemic.

In countries like Saudi Arabia, the frequency of online shopping overall seems to be increasing, with the percentage of consumers making online purchases either daily or weekly increasing from 20% in September 2020 to 26 per cent today.

Looking to the month ahead, approximately three-quarters of those surveyed (76%) plan to purchase products and services online more frequently this Ramadan or at least the same amount as last year. Meanwhile, a quarter (26%) say that they will be shopping in-person less frequently for products and services. Merchants can expect certain demographic groups to drive more frequent online Ramadan purchases, particularly the most affluent consumers and those aged between 18 to 34 years of age.

Not only do people anticipate making more online purchases, but they also plan to purchase a wide variety of products and services more frequently this Ramadan compared to last year. The most popular category of products is expected to be groceries, with 60 per cent of respondents planning to purchase these online more frequently this Ramadan. That is followed by food delivery (50%), clothing (44%), and household products (39%).

Mohammed Ali Yusuf, Regional Manager, Middle East, North Africa and Pakistan (MENAP), Checkout.com, said: “Many traditionally cash-centric countries in the Middle East are now converting to higher rates of digital payments. The pandemic has spurred a payments revolution of sorts and it is not one that is going away. With more consumers now appreciating the convenience of online purchasing and payments, there is a clear opportunity for forward-thinking businesses to do what they do better by unlocking more value in every transaction. This is particularly important during a period like Ramadan when competition amongst merchants is high and businesses need to provide the online shopping experience that consumers are looking for.”

According to Checkout.com’s Connected Payments in MENAP report released in November 2020, nearly half of consumers in the MENAP region are likely to increase their online shopping this year compared to 2020.

Click below to share this article