Network International: Growth in spending on e-commerce platforms in the UAE during the first quarter
Statistics for Network International, a provider of services supporting digital commerce in the Middle East and Africa, showed a remarkable growth in spending rates across e-commerce platforms in the UAE during the first quarter of 2022, achieving double the transactions registered within the "points of sale", compared to the same period. From the year 2021.
The rise in online spending, which included debit and credit card payments, was supported by the volume of digital payments recorded by government sector transactions, followed by restaurants, supermarkets and convenience stores, which accounted for more than 45% of the total volume of spending.
Spending growth
According to Network International, the total spending on cards during the first quarter of 2022 witnessed a double-digit growth compared to the same period in 2021, and the total number of cards used to make online payments increased by 32%, indicating a permanent change in Consumer behavior after the “Covid 19” pandemic, and the increased reliance on digital commerce platforms.
This growth was driven by card payments transactions with low and medium spending rates, which is evidence of a shift in the payment trends of the population groups who previously relied on cash payment as their first option, or those who used the payment cards moderately.
number of cards
The number of “direct debit” cards used during the first quarter of 2022 increased by 1.5 times compared to the number of “credit cards.” The volume of payments using credit cards for consumers with low and medium spending rates increased more than that of consumers with high spending rates.
Spending rates using “debit cards” online in supermarkets recorded a growth of 36% compared to spending online using “credit cards”, which witnessed a growth of 20%.
Network International previously reported an increase in spending by UAE residents when shopping from online supermarkets during the post-Covid-19 closures, compared to their in-store purchases.
With this trend continuing to escalate since 2020, supermarkets have seen double-digit growth in average card spend across e-commerce services, while point-of-sale spending has remained unchanged.
At the same time, in-store debit card spending grew by 5%, compared to credit cards that had a flat rate.
Modern techniques
Ian Giggins, Head of Consulting and Information Services at Network International, said that digital payments are one of the most prominent new technologies in our world today, so merchants need to put them first at the level of their tools and use their data to be able to continue to keep pace with changing market dynamics.
Follow our latest local and sports news and the latest political and economic developments via Google news