The holy month of Ramadan is witnessing a remarkable surge in online shopping across various retail and service categories in the UAE, signaling a growing confidence in the country’s digital payment ecosystem. A recent report released on Tuesday by Checkout.com, a financial technology company, reveals that consumers are increasingly trusting and finding convenience in online transactions, especially during this festive period.
Based on historical spending patterns, Checkout.com anticipates significant growth in online marketplace transactions, apparel, healthcare, and travel categories during Ramadan. Data from the company shows an 8.5 percent increase in the volume of digital payment transactions last Ramadan across all product and service categories, compared to the preceding period. The most significant jump was observed in online marketplaces, where transaction volume skyrocketed by 143 percent. Apparel, healthcare, travel agencies, and sports and toys categories also witnessed substantial increases in consumer transactions, with rises of 78 percent, 48 percent, 42 percent, and 31 percent, respectively.
Furthermore, remittances in the UAE experienced a 17 percent rise compared to the previous period, indicating a marked increase in funds sent by expatriates to families and friends during the Eid holidays and the holy month.
In 2023, Checkout.com processed online transaction volumes during Ramadan that swelled in the region year-on-year by 69 percent. From 2021 to 2023, this volume impressively rose by 143 percent.
Remo Giovanni Abbondandolo, General Manager – MENA at Checkout.com, commented on the trend: “The growing confidence in digital payment platforms and increasing trust from consumers for online shopping reflect not just the unique preferences of Ramadan shopping, but also the dynamic nature of the digital payments landscape in the UAE.” He attributed this surge in online spending to rapid digitalization in the country and evolving merchant needs, supported by payment service providers enhancing their offerings.
Previous research by Checkout.com suggests that the strong trend towards online shopping in the UAE is more than a temporary shift. It’s seen as a long-term behavioral change, driven by the unprecedented convenience e-commerce offers. This includes the speed and security of transactions processed by trusted payment platforms.
As Ramadan continues, this trend underscores a significant shift in consumer behavior in the UAE, embracing the convenience and reliability of digital payment solutions for festive shopping and beyond. This digital shift is not only reshaping the retail landscape but also reflects the broader technological advancement and consumer trust in digital platforms within the region.
