In 2024, the e-commerce space in MENA experienced a substantial growth of over 30%, with Saudi Arabia and the United Arab Emirates (UAE) leading this surge. Additionally, 38% of respondents in the MENA region had travel plans during the Eid holiday in 2024 (Statista). In the UAE specifically, 63% of residents intended to travel during Eid, with nearly two-thirds planning staycation.
This uptick in both e-commerce and travel underscores the importance for businesses in these sectors to adopt flexible and convenient payment solutions. Digital payment options such as Installments, Buy Now Pay Later (BNPL) with Tabby, STC Pay, and Payment Links have become instrumental in enhancing customer convenience, boosting sales, and fostering repeat business.
How Installments Can Increase E-Commerce Sales
For a luxury fashion retailer based in the UAE, offering the ability to split payments into manageable installments can make premium products more accessible. During Eid, customers often seek high-end fashion items as gifts or for themselves, but may hesitate due to the high upfront cost. By offering the ability to pay in Installments, retailers can empower customers to make larger purchases by spreading the cost over a period of time, making higher value items more accessible and budget-friendly. This flexibility encourages customers to go ahead with purchases they might have postponed, enabling them to enjoy the products without feeling burdened by the entire cost at once.
For merchants, this can lead to a 10% to 15% increase in sales as customers are more likely to purchase when they can split payments over time, and merchants receive 100% of the purchase value upfront, improving cash flow.
How BNPL Can Boost Travel Bookings
During Eid, airlines in MENA typically see an increase in travel bookings as families and individuals plan vacations. Offering BNPL options like Tabby can help customers who may want to book flights but are concerned about the upfront cost. With BNPL, customers can split the cost of the airline ticket across multiple interest-free payments, making it easier for customers to secure their flights earlier and manage their budget.
Customers can enjoy the excitement of booking their flights in advance without having to worry about the immediate financial impact of paying for their flights in one payment. Merchants can benefit by seeing a significant boost in sales with 18% average increase in conversion rates, as more browsers are likely to complete their purchases when they can spread the cost over time. Additionally, offering BNPL helps airlines reach over 13 million active shoppers, expanding their customer base, and generating up to a 40% repeat purchase rate.
How STC Pay Can Streamline Hotel Bookings in Saudi Arabia
During Eid, hotels in Saudi Arabia may experience a rise in last-minute bookings, especially from domestic travelers and unbanked customers. By integrating STC Pay, one of the most widely used digital wallets in KSA with over 8.5 million users, hotels can offer a seamless and convenient payment option. Using STC Pay, guests can confirm their stays instantly using their mobile wallets, without the need for credit cards. This makes the booking process faster and more accessible.
For hotels, this could lead to an increase in direct bookings, reducing reliance on third-party platforms. The ease of mobile payments may also improve conversion rates, as travelers can complete bookings without delays. Faster transactions at check-in can enhance the guest experience, ensuring a smooth and hassle-free stay during the busy Eid season.
How Payment Links Can Simplify Holiday Package Payments
For travel agencies offering Eid-specific holiday packages, Payment Link can streamline the payment process, especially when customers are engaging through social media or messaging apps. Payment Links allow agencies to send secure payment links directly to customers' mobile phones, enabling them to pay instantly without leaving their preferred communication app. By offering a smooth payment process directly within a customer’s preferred social media or messaging app, merchants can reduce checkout friction and boost purchase completion rates.
Merchants benefit from this easy-to-use solution, which saves them time by managing multiple payments in bulk, reducing invoice mistakes, and speeding up the payment process. Payment Links also help merchants collect payments more efficiently, even if the merchant does not have a website, and ensure that all invoices are delivered correctly, leading to a smoother operational workflow.
The Future of Digital Payments in MENA
With the MENA e-commerce landscape projected to reach $109.99 billion by 2025, growing at an annual rate of 9.7%, and travel demand rising during festive seasons, merchants must offer flexible and convenient payment options. Digital payment solutions not only enhance the customer experience but also ensure merchants remain competitive in a fast-evolving market.
This Eid, empower your business with Amazon Payment Services to boost sales, enhance conversions, and drive repeat customers. Contact us today to integrate the latest payment solutions.
