Dec 20, 2021

Status of Cash on Delivery Payment Mode in the Middle East


espite the growing popularity of online shopping in the Middle East, a recent survey indicates that 76% of Middle Eastern shoppers prefer cash on delivery. This trend is in line with the region's strong demand for convenience and security, making it an excellent time for merchants to accelerate their digital strategies. Moreover, it is a perfect option for small businesses and retailers.

Hassle-Free Mode of Payment

In the Middle East, many consumers prefer cash on delivery over other payment methods such as credit cards. The convenience of using this payment option has led to a significant increase in purchases in online stores. Moreover, it has become the preferred mode of payment for many shoppers, as it allows them to make online purchases with no hassle of dealing with credit card companies or banks.

Older Generations Less Friendly to Digitization

However, despite a high rate of online purchases in the Middle East, the region's consumers are not technology-averse. Even though the older generations don't trust electronic payment channels, this cultural trait does not hamper their adoption of digital tools. In fact, the culture of the region is quite welcoming to the use of digital tools and efficient shipping solutions. This trend is meant to continue and evolve in the coming years. Despite the growing use of digital technologies, some of the Middle Eastern consumers remain heavily dependent on cash.

Traditionalists Turning Revolutionists

However, despite the advantages of using digital payments, the Middle-Eastern consumer is a traditionalist who is hesitant to adopt new technologies. Nevertheless, in the region, the rise of e-commerce has led to a gradual shift away from cash. Those who are looking to make the most of their online purchases should adopt digital payment solutions and move away from cash. The trend will eventually lead to the elimination of cash-based payments entirely.

Despite the recent decline in cash-based transactions, COD is a popular payment method in the Middle East. The rise of e-commerce has facilitated the growth of many new online payment methods. The use of credit cards has increased in the region, while the number of unbanked consumers is reducing. In contrast, the utilization of debit cards has been growing in the Middle East. So, while cash-based payments are still popular in the region, the trend towards electronic payments is still accelerating.

Written by Khurram Siddique

Key Accounts Manager, Payment Solutions, Ottu