Digital Commerce Surges in MENA as Region Embraces Fintech and AI
Emerging technologies are playing a significant role in MENA's economic transformation, with the region frequently cited as one of the most proactive globally in adopting and exploring new digital solutions, according to Checkout.com 's fifth annual MENA report, The State of Digital Commerce in MENA 2025 – Trends that matter: Insights into changing consumer behaviour.
The report examines how efforts from central banks, regulators, fintech firms, and merchants, alongside a predominantly digital-native population, have accelerated digital adoption.
It provides data-driven insights intended for merchants, regulators, and other stakeholders looking to understand and engage with MENA's shifting commerce landscape.
Online shopping in the region has increased substantially over the past five years, with daily transaction volumes rising by 139% since 2020.
Checkout.com's own processing volumes in the region have grown by 626% over the same period, with a 78% year-on-year increase, reflecting broader shifts in consumer behaviour and the growing reliance on digital platforms.
Among online spending categories, food delivery accounts for the largest share at 47%, followed by clothing and fashion at 38%. Beauty products and electronics each represent 34% of online spending.
This suggests that consumers are becoming more comfortable purchasing a wide range of products online.
In the UAE, the use of Account Funding Transactions (AFTs) has grown by 388% year-on-year.
This rise indicates a shift towards real-time, digital payment infrastructure not just for shopping, but also for salary payments, freelance earnings, and peer-to-peer transactions.
According to the report, 61% of consumers in the region plan to increase their online shopping in the coming year.
Sectors expected to benefit include travel, food delivery, retail commerce, and public services. Meanwhile, the use of cash-on-delivery has declined by 60% since 2020.
'Across every innovation shaping the future of ecommerce, MENA markets consistently rank among the most forward-looking. This isn't a region catching up, it's a region leading the world.'
The report also highlights increasing consumer engagement with fintech and artificial intelligence.
43% of respondents use apps or digital wallets weekly to send money, and 62% are engaging with investment and wealth management platforms.
AI tools are also playing a larger role in online shopping, with 45% of consumers having used generative chat platforms and 53% having used visual search technology.
Shopping habits are also changing in physical stores.
37% of consumers report searching for alternatives online while browsing in-store, prompting retailers to incorporate digital tools such as QR codes and augmented reality previews into physical retail environments.
Trust in brands is increasingly influenced by online reviews and social feedback, with peer input often carrying as much weight as traditional brand familiarity.
This shift in consumer trust dynamics is accompanied by rising concerns about online fraud.
Reports of fraud have grown from 33% in 2023 to 49% in the latest data. In response, businesses are adopting machine learning, behavioural biometrics, and real-time detection systems to address security concerns.
'Fast, secure, and intelligent payments are foundational to commercial success, not just at the point of transaction, but across the entire customer experience,'
said Abbondandolo.
Checkout.com's report is based on five years of data and offers a retrospective view of the region's digital commerce trends, underscoring the pace and scale of change in MENA's economic landscape.
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