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5/28/24, 11:29 AM Fintech is shaping the future of e-commerce in the Middle East: Here’s how - Logistics Middle East
the region’s wider economy. In fact, by the end of next year, it is estimated to reach
a market volume of $50 billion.

Several key factors behind this meteoric growth are involved. From the rapid adoption
of smartphone technology to a shift in consumer and generational behaviours,

particularly in the wake of COVID-19, e-commerce’s speed, security, and convenience
have helped it quickly overcome traditional challenges such as cash payment

preferences and a lack of trust in online methods.

However, the continued growth and evolution of regional e-commerce depends on two
elements: firstly, continued investment in digital infrastructure by government bodies

and continued investment in digital innovation by financial technology (fintech) firms.

The intersection of fintech and e-commerce offers transformative potential for
businesses across the MENA region. So, how can fintech address—and solve—ongoing
challenges within the e-commerce sector? How can it drive further growth for

platforms and merchants alike? And what lies ahead for this dynamic sector?

Leveraging technology for e-commerce

growth

One crucial way fintech drives e-commerce is by providing personalised financial

services. Thanks to significant advancements in data analytics, fintechs are helping e-
commerce platforms and retailers delve deeper into the behaviours, preferences and
purchase patterns of their consumers across apps and other digital interfaces. By

collecting and analysing this data, e-commerce platforms can gain invaluable insights
into what keeps their customers engaged, which ones are more likely to churn and,

ultimately, what converts a swipe into a sale. This enables digital merchants to become
more creative in their promotional marketing and launch tailored communications and
offers for specific customer segments. When deployed correctly, this hyper-

personalised approach not only enhances customer engagement but also satisfaction
and loyalty.

Today, 70% of consumers across the MENA region prefer digital payment methods (this

figure is even higher in the GCC, at 80%). However, as these methods become
increasingly sophisticated, so do how fraudsters attempt to exploit both e-commerce
customers and platforms.

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