Why is cash on delivery very popular in Mena?
According to the report from yStats.com, more than 50% of online shoppers in countries in the MENA (Middle East and North Africa) region prefer cash on delivery to other payment methods like credit cards. The use of debit cards comes the second since it does not have the assets of credit cards which do not follow Islam.
Even though people living in the Middle East and North Africa wanted to shop online, they could not due to the need for credit cards. Cash on delivery has become the solution for this region where people can confidently buy something online knowing that they do not violate the rules of Islam.
There are some challenges of using cash in online payments. Merchants can receive the money only after the product is shifted. This causes the problem in cash flow. Transactions occur much slower than they usually would do, which is an unfavorable situation for the merchants. Another problem with the cash on delivery is that some customers do not want to give money for the product they bought or change their minds about the products. Collecting the cost becomes a stressful and doubtful process.
The online payment options are different in the MENA region than in the rest of the world due to Islamic reasons. Even though cash dominates the market in that part of the world, new Islamic compliant online payment systems could be developed as an option. After all, demand for e-commerce is increasing rapidly that the buyers from the MENA region will need an option that would take place of cash.
How can MenaPay bring a solution to cash on delivery system?
- There will be no interest, so the payment will be 100% Islamic compliant.
- MenaCash is 100% backed by USDs, meaning there will be a single currency in a region which was fragmented with multiple currencies before.
- Desktop and mobile wallets will make feel the buyers like they have a solid wallet with the easiness of use.
- An advantage for the merchants is that transactions will take place in a faster pace.
Please check MenaPay to see the benefits for your everyday purchases;
If any questions comes to your mind, please don’t hesitate to contact us via Telegram community;
