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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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