- Checkout.com forecasts surge in online spend this year among consumers in Saudi Arabia in areas like food stores, apparel, and hospitality
- Trends follow 22% growth in digital payment transactions in the Kingdom last Ramadan
- Notably, remittances rose by 28% in the Kingdom compared to the prior period
- Across the region, the volume of digital payment transactions in Ramadan has risen by 143% y-o-y between 2021 and 2023
Riyadh, KSA – April 02, 2024: Checkout.com, a leading global payments solution provider, has predicted that online shopping in Saudi Arabia over the month of Ramadan will continue to surge across many key retail and service categories, reflecting how the country’s digital payment ecosystem is gaining more trust while becoming more convenient for consumers.
Based on previous spending trends, Checkout.com expects high-growth categories this holy month to include transactions in services, food stores, apparel, and hospitality.
Historical data from Checkout.com shows a growth of 22% in the volume of digital payment transactions in the Kingdom last Ramadan across all product and service categories, compared to the period prior. Last year, the volume of consumer transactions in KSA rose most sharply in services, where the volume of transactions surged notably. Other categories with large transaction increases during Ramadan were food stores (94%), apparel (76%), hospitality (49%), and airlines (42%), alluding to the rising interest of Saudi consumers in travel in the period surrounding Ramadan.
Remittances also rose by 28% in the Kingdom compared to the prior period, signaling a significant uptick in funds sent by expatriates to their families and friends, both in anticipation of the Eid holidays and during the holy month.
Overall, in 2023, Checkout.com saw processing volumes of online transactions during Ramadan swell in the region year-on-year by 69%. Between 2021 to 2023, the volume rose by an astounding 143%.
Remo Giovanni Abbondandolo, General Manager – MENA at Checkout.com, said: “We see a growing confidence in digital payment platforms and increasing trust from consumers for online shopping. This reflects not only the unique preferences of Ramadan shopping, but also the dynamic and evolving nature of the digital payments landscape in the Kingdom. The rapid digitalization in the country has led to a considerable boost in online spending in recent years, with the evolving needs of merchants being supported by payment service providers who are fine-tuning their value propositions.”
Earlier research by Checkout.com indicates that the strong inclination towards online shopping is more of a long-term behavior change rather than a temporary shift. Consumers in Saudi Arabia are increasingly motivated by the unprecedented convenience e-commerce provides, combined with the transaction speed and security offered by trusted payment processors.
Source: Checkout.com