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Thursday, 6 May 2021

Yes, yes, we all love digital payments…

The vast majority of Egyptians are open to using new payment methods, signaling that the pandemic has spurred a major shift in spending habits, according to a survey (pdf) by Mastercard. The poll of 1k Egyptians found that 94% of respondents are considering using new methods of payment such as cryptocurrency, biometrics, digital wallets, money transfers, contactless payments, and QR codes.

Fintech players have covid-19 to thank: Almost two-thirds of respondents said they have tried a new payment method they would not have used had it not been for the pandemic. “The pandemic has galvanized people to try flexible new payment options,” Mastercard said.

Businesses need to adapt: Over half of consumers would avoid businesses that don’t accept electronic payments, while 68% said they are more likely to stick with businesses that offer different payment options and 73% prefer to shop at places that have both an in-person and online presence. The survey suggests that it is becoming essential for businesses to start offering a broader range of payment options, said Khalid Elgibali, president of Mastercard’s MENA division.

Cryptocurrency to make headway but… Almost 50% of respondents plan to use cryptocurrency in the next year, while 62% are more open to using it compared to a year ago. Policymakers in Egypt have come out strongly against the use of cryptocurrencies, banning their use without a license in the recent Banking Act.

Digital wallets, money transfers + QR codes becoming more popular: Two-thirds of respondents will use digital wallets next year, 65% would opt for digital money transfer and more than half will use QR codes.

Biometrics are less common, but more trusted: Some 62% of respondents said they feel safer using biometrics to verify a purchase than entering a pin, and 41% plan to use verification methods such as gait and fingerprint authorization.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2021 Enterprise Ventures LLC.