UAE’s Gen Alpha: Online Shopping And Gaming Enthusiasts

In the UAE, Generation Alpha is particularly adept at navigating today’s digital-first economy. The research reveals their heavy reliance on social platforms for shopping, with younger buyers gravitating toward social commerce. While 54% of millennials tend to stick to direct-to-consumer websites, 51% of Gen Z prefer shopping directly through social media.

The gaming sector is another area where the UAE’s young consumers are taking the lead. Children in the UAE spend 47% of their allowances on e-gaming, far surpassing the 28% spent by their peers in the UK, US, and China.

High-Value Purchases On The Rise

Parents’ spending on high-end items is soaring too. The report notes a 46% surge in luxury goods purchases and notable increases in home appliance and travel purchases. This trend signals a rebound in consumer confidence, particularly in recently hard-hit areas like tourism.

Interestingly, UAE kids are not just passive beneficiaries of parental spending. The study reveals that 75% of 8-year-olds and 92% of 15-year-olds in the UAE make purchases independently, often through digital platforms.

Buy Now, Pay Later Gains Traction

The research uncovers a surprising trend: a growing number of UAE children over 13 opt for “Buy Now, Pay Later” (BNPL) services. While still a small percentage (11%), this points to how younger generations are embracing alternative payment methods early on.

Global Insights: Social Commerce And Digital Influence

Globally, Generation Alpha influences about 27% of household spending, with digital purchases accounting for nearly a third of that figure. Parents increasingly buy digital products, such as educational tools and streaming services, with 47% prioritizing online learning resources.

Social media remains a dominant force in shopping habits. Across all regions, children use platforms like Instagram and TikTok to discover deals, with preferences varying slightly between countries. In the US, 57% of young shoppers rely on social media, compared to 41% in the UAE.

Physical stores, meanwhile, are becoming less popular. Just 35% of Gen Z worldwide shop in brick-and-mortar stores regularly, further underlining the shift to digital channels.

A Blueprint For Future Commerce

“Generation Alpha is playing a major role in the digital economy,” says Rory O’Neill, Chief Marketing Officer at Checkout.com. “Businesses must pay close attention to evolving customer preferences to stay competitive in this rapidly changing market”.

The post Study Shows Gen Alpha’s Growing Impact On The Digital Economy appeared first on Tech Magazine.

Club L London, which operates through six dedicated international websites, has recently launched a new platform for the Middle East, and is relying on Checkout.com’s expertise to support its global growth. The partnership is particularly focused on the MENA region, where Checkout.com has offices in both Dubai and Riyadh, plus key licenses in the United Arab Emirates.

By choosing Checkout.com as its primary payment provider, Club L London benefits from a pre-built Shopify checkout solution and superior payment performance. Additionally, local acquiring services are available in the UAE, along with Shopify digital wallet integration, elevating the overall customer experience for shoppers.

Headquartered in Manchester, UK, Club L London offers affordable luxury womenswear with distinctive designs. The brand has a strong presence in the UK, US, France, Australia, and the UAE and specializes in prom dresses, maternity wear, bridal attire, and accessories. Club L has built a global community of diverse consumers, influencers, and content creators, consistently releasing new collections to meet the demands of its expanding audience.

Also Read: Top E-Commerce Websites In The Middle East In 2024

‍Remo Giovanni Abbondandolo, General Manager, MENA, Checkout.com, said: “We’re passionate about helping businesses thrive in the digital economy. Club L is a prime example of a tech-enabled brand that we can help to grow via high acceptance rates, smooth integration with its e-commerce platform, and leverage our leadership and knowledge position in the MENA region”‍.

‍Seb Green, Chief Technical Officer at Club L London, added: “We are always looking for ways to enhance the customer experience on our site by offering the best payment methods. Checkout.com’s integration is a perfect fit for us, presenting an exciting opportunity for us to expand into new markets with a leading payments provider”.

The post Club L London Teams With Checkout.com For Global Expansion appeared first on Tech Magazine.

According to Checkout.com’s MENA General Manager Remo Giovanni Abbondandolo, one way to capitalize on e-commerce surges is by optimizing in-app payment processing. In-app payments present an untapped opportunity for revenue growth during Ramadan, offering various monetization avenues, such as subscription payments for exclusive content.

In-app payment processing enables merchants to accept payments directly within their mobile apps, streamlining the checkout process and enhancing security. However, integrating mobile payment technology via a payment service provider (PSP) requires compliance with Apple or Google’s app store guidelines.

Checkout.com’s Abbondandolo also emphasizes the significant benefits merchants in the GCC can reap from refining their in-app payments, including:

• Improved Conversions: Simplifying the checkout process within the app reduces cart abandonment rates, leading to higher conversion rates.
• Increased Revenue: Seamless in-app payments translate to enhanced conversions, resulting in higher revenue generation.
• Enhanced Customer Retention: In-app payments deliver a frictionless experience, encouraging users to spend more time within the app and boosting retention rates.
• Expedited Settlements: Direct account-to-account payment methods enable faster settlement times compared to card payments.

Also Read: Qatar Airways Unveils The World’s First AI Cabin Crew

However, merchants should consider potential drawbacks, such as high commissions and limited flexibility in payment methods beyond Apple Pay or Google Pay.

Despite these challenges, Abbondandolo suggests that the benefits of in-app payments outweigh the drawbacks, especially during busy seasons like Ramadan. The takeaway from payment processors like Checkout.com is clear: Merchants must adopt a strategic approach to optimize user experience while managing commission costs and adhering to app store regulations.

The post Improving In-App Payment Processing For Ramadan appeared first on Tech Magazine.

“We believe in abstracting complexity for businesses and empowering them to optimize their payments with ease. Machine learning enables us to […] leverage our expansive global transaction data to provide real-time insights. Meanwhile, an adaptive AI-powered payments engine constantly optimizes acceptance rates, unlocking more revenue, saving time, and offering greater cost controls,” says Meron Colbeci, Chief Product Officer at Checkout.com.

False declines — legitimate transactions mistaken for fraud attempts and subsequently blocked — are a $50.7 billion problem globally. Intelligent Acceptance can route card payments through the system much more smoothly, using continuous adaptation while leveraging Checkout.com’s global network and direct relationships with card acquirers to deliver incremental improvements.

Also Read: A Guide To Digital Payment Methods In The Middle East

Intelligent Acceptance can also drive down a merchant’s costs by dynamically routing transactions to the network with the lowest fees. Furthermore, if a transaction requires 3DS authentication, data can be automatically added to a payment request to ensure compliance.

The launch of Intelligent Acceptance comes as business leaders seek new ways to drive revenue and improve cost efficiencies to reconcile increased expenses. Research conducted by Checkout.com in partnership with Oxford Economics recently revealed that up to 25% of consumers abandoned an online purchase due to too much checkout friction, resulting in significant lost revenue for merchants.

The post Checkout.com Uses AI To Boost eCommerce Acceptance Rates appeared first on Tech Magazine.

Now that Checkout.com has secured an acquiring license, the company can unlock its full proposition for UAE merchants, including card acquiring, payment aggregation, and cross-border fund transfers. Most importantly, Checkout.com’s new acquiring license gives the company greater control over the entire payment processing mechanism and enables best-in-class payment acceptance rates for merchants.

“Our thanks to the Central Bank of the UAE for their approval. The issuance of this license shows the level of trust, commitment, and strength of the relationship we continue to have in serving both domestic and international brands to expand in the UAE. We’re proud of the small part we’ve played to increase the trust in digital payments and allow businesses in the digital economy to thrive,” says CEO and Founder of Checkout.com, Guillaume Pousaz.

Also Read: Paymob Gets Official Certification To Operate In Saudi Arabia

The UAE has recently witnessed an explosive eCommerce growth trajectory. It is forecast to reach a Compound Annual Growth Rate (CAGR) of 11%, increasing the eCommerce market size to $17Bn by 2025. 91% of consumers in the UAE now favor making their purchases online, and Checkout.com already supports some of the country’s top brand names, including Cafu, Washmen, Shahid, Qlub, Carrefour, Namshi, Mamo, MakeMyTrip, and The Entertainer.

The post Checkout.com Gains Acquiring License From UAE Central Bank appeared first on Tech Magazine.