Western Union has announced a collaboration with the Arab Federation for e-Commerce, to jointly boost the uptake of e-Commerce and digital payments in the Middle East and North Africa (MENA) region.
Representing 14 governments from MENA, the Arab Federation of e-Commerce aims to establish efficient processes, practices and platforms for the development of secure and efficient e-commerce to serve consumers, businesses, financial institutions and governments in the region.
Western Union’s expertise, according to the Federation, in being a channel for reliable movement of money extends to over 200 countries and territories around the world. It provides consumers, businesses, NGOs and financial institutions with the ability to send money transfers and payments through cash at locations, through bank accounts, online or mobile, and the choice of receiving money through a network of over 500,000 agent locations or billions of bank accounts, mobile wallets or cards.
“While currently online transactions are a very small part of overall payments in the region, building the robust infrastructure needed to stimulate and support e-commerce makes good economic sense,” said said H.E Ambassador Mohamed Al Rabea, Secretary General of Council of Arab Economic Unity, the League of Arab States.
He added that governments are keen to bring in the efficiency, transparency and inclusion of a strong e-Commerce environment. “A global industry leader such as Western Union will help us bring best practice systems and platforms to meet these goals.”
With its young population, high internet penetration and government commitment to building efficient payment systems, the MENA region has the potential for rapid growth in e-Commerce and digital payments and supporting new lifestyle habits including online shopping. According to leading global research and advisory firm Forrester, growth in online cross-border retail is faster in MENA than in Europe and North America . The Middle East/Africa has the highest rate of online shoppers who buy across borders, with more than half of online shoppers buying internationally.
“Our experience with managing a large retail network as well as fast-growing digital channels, combined with our understanding of the complexities of regulatory and compliance requirements for global payments, enables us to deliver solutions that meet a wide range of payment needs. We look forward to working together with them to create a seamless experience for consumer, business or government payments across MENA,” said Hatem Sleiman, regional vice president, Middle East, Western Union.
