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GENERAL METHODOLOGY OF MARKET REPORTS

Secondary Market Research

The reports are compiled based on secondary market research. Secondary research is information gathered from previously published sources. Our reports are

solely based on information and data acquired from national and international statistical offices, industry and trade associations, business reports, business and

company databases, journals, company registries, news portals and many other reliable sources. By using various sources we ensure maximum objectivity for

all obtained data. As a result, companies gain a precise and unbiased impression of the market situation.

Cross referencing of data is conducted in order to ensure validity and reliability.

The source of information and its release date are provided on every chart. It is possible that the information contained in one chart is derived from several

sources. If this is the case, all sources are mentioned on the chart.

The reports include mainly data from the last 12 months prior to the date of report publication. Exact publication dates are mentioned in every chart.

Definitions

The reports take into account a broad definition of B2C E-Commerce, which might include mobile commerce. As definitions may vary among sources, exact

definition used by the source (if available) is included at the bottom of the chart.

Chart Types

Our reports include text charts, pie charts, bar charts, rankings, line graphs and tables. Every chart contains an Action Title, which summarizes the main

idea/finding of the chart and a Subtitle, which provides necessary information about the country, the topic, units or measures of currency, and the applicable time

period(s) to which the data refers. With respect to rankings, it is possible that the summation of all categories amounts to more than 100%. In this case, multiple

answers were possible, which is noted at the bottom of the chart.

Report Structure

Reports are comprised of the following elements, in the following order: Cover page, preface, legal notice, methodology, definitions, table of contents,

management summary (summarizing main information contained in each section of report) and report content (divided into sections and chapters). When

available, we also include forecasts in our report content. These forecasts are not our own; they are published by reliable sources. Within Global and Regional

reports, we include all major developed and emerging markets, ranked in order of importance by using evaluative criteria such as sales figures.

Notes and Currency Values

If available, additional information about the data collection, for example the time of survey and number of people surveyed, is provided in the form of a note. In

some cases, the note (also) contains additional information needed to fully understand the contents of the respective data.

When providing information about amounts of money, local currencies are most often used. When referencing currency values in the Action Title, the EUR

values are also provided in brackets. The conversions are always made using the average currency exchange rate for the respective time period. Should the

currency figure be in the future, the average exchange rate of the past 12 months is used.

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METHODOLOGY OF THE CURRENT REPORT

Report Coverage

This report covers the online payment market in the Middle East and Africa. It takes into account a wide definition of online payment, including payment methods

used in online shopping and mobile payment, such as remote and proximity payments.

Major countries in the region are covered, while data availability varied across the markets.

The report includes data mostly published in 2016. The exact date of publication of the source is stated on each chart. The time period which the data refers to

differs by source.

Report Structure

The global chapter opens the report, featuring an overview of global online and mobile payment developments.

The rest of the report contains country-specific and regional information. Countries are grouped by the two regions covered: the Middle East and Africa. Within

each group, regional information is presented first, while the countries are included in the descending order of B2C E-Commerce sales.

Depending on data availability, the following types of market information are included: payment methods most used by online shoppers, breakdown of E-

Commerce sales by payment methods, number and value of online/mobile payment transactions, mobile payment usage and consumer awareness of mobile

payment providers, payment-related factors important to online shoppers. Not all the mentioned types of information are available for each of the covered

countries.

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DEFINITIONS

ONLINE PAYMENT Transfer of money made over the Internet following a consumer’s payment command, includes payments for product

and service purchased in (B2C) E-Commerce and M-Commerce.

MOBILE PAYMENT A wide definition of mobile payments includes remote payments made remotely in M-Commerce and proximity

payments made in-store, such as via QR code scanning and NFC technology.

MOBILE PROXIMITY PAYMENT A mobile payment where the merchant and the consumer are present in the same location and the interaction between

the consumer’s device (card, mobile device) and the POS is conducted using a proximity technology (e.g. NFC).

NFC Near Field Communication, a set of standards for smartphones and similar devices to create radio communication by

bringing them close together or having them touch each other. In that way, contactless data exchange and transactions

can take place.

ALTERNATIVE PAYMENTS

Generally refers to payment methods other than credit card or bank card payments. Widely defined, alternative online

payment methods include bank transfers and direct debit, digital wallets, pre-paid cards and private label cards, invoice,

and digital currency. May also include cash on delivery and card schemes by local companies other than global card

brands.

E-WALLET /

DIGITAL PAYMENT SYSTEM A prepaid digital account, allowing users to store money and use it in online or mobile transactions. The examples of E-

Wallets or digital payment systems include Alipay and PayPal.

MOBILE WALLET

a software solution that enables consumers to store payment credentials, such as credit or debit card information, and

use the stored credentials to pay digitally for transactions made in-store, online or via mobile. Mobile wallets are

installed on mobile devices which are used to complete payments. The examples of mobile wallets include Apple Pay,

Samsung Pay and Android Pay.

INSTANT PAYMENTS Electronic payment solutions for retail which are available 24/7/365 and thus result in immediate or close-to-immediate

interbank clearing of transactions and crediting of the payees’ accounts and confirm the payment to the payer after

payment initiation.

B2C E-COMMERCE The sale of products (and services) through electronic transactions via the Internet from businesses to consumers.

M-COMMERCE M-Commerce, also called “Mobile Commerce”, means the sale of products (and services) through transactions via

mobile devices.

ONLINE SHOPPING Purchase of products or services by consumers via the Internet. Broadly defined, may include business to consumer

and consumer to consumer transactions.

The following expressions and definitions are used in this Online Payment market report*:

Note: *the definitions used by the original sources might differ from the ones stated on this chart; the exact definition used by each source, where available, is included on the respective

charts

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TABLE OF CONTENTS (1 OF 3)

1. Management Summary

2. Global Developments

• Online and Mobile Payment Trends, H2 2016

• Breakdown of E-Commerce Sales by Payment Methods, in %, 2015 & 2020f

• Payment Methods Used in Online Shopping, in % of Online Shoppers, October 2015

• Payment Methods Used in Online Shopping, by Regions, in % of Online Shoppers, October 2015

• Top 3 Payment Methods Preferred in Cross-Border Online Shopping, in % of Cross-Border Online Shoppers, August 2016

• Top 3 Considerations When Choosing a Payment Method in Cross-Border Online Shopping, in % of Cross-Border Online Shoppers,

August 2016

• Reasons To Choose the Preferred Payment Method in Cross-Border Online Shopping, in % of Cross-Border Online Shoppers, 2016

• Value of Online Payment Fraud, in USD billion, 2015 & 2020f

• Breakdown of Online Payment Fraud by Segments, in % and in USD billion, 2020f

• Security Authentication Features That Online Shoppers in the USA and the UK Would Consider Setting Up for Online Purchases in the

Next 12 Months, in %, November 2016

• Breakdown of the Number of Online Payment Options Offered, in % of Online Merchants, January 2016

• Top 10 Merchant Acquirers, by Volume, in USD billion, 2015

• Mobile Payments Share of Total Consumer Card Payments, in %, 2016e & 2021f

• Mobile Proximity Payment Transaction Value, in USD billion, 2014 & 2019f

• Number of Proximity Mobile Payment Users, in millions, 2014 – 2019f

• Mobile P2P Money Transfer Transaction Value, in USD billion, 2014 & 2019f

• Number of Mobile P2P Money Transfer Users, in millions, 2014 – 2019f

• Mobile and Wearable Contactless Payments, in USD billion, 2015 & 2018f

• Mobile Payment Usage In-Store and Online, in % of Respondents, by Generation, 2015

• Perception of Security of Mobile Payments, in % of Respondents, by Generations, 2015

• Contactless Payment User Penetration, in % of Banked Population, July 2016

• Payment Methods Used in Mobile Shopping, in % of Mobile Shoppers, by Selected Regions, August 2016

• Products and Services Paid for via Mobile Wallet, in % of Mobile Shoppers Who Paid with Mobile Wallet, August 2016

• Probability of Using Mobile Wallets, in % of Smartphone Owners, by Selected Countries, July 2016

• Number of Mobile Money Accounts, by Registered and Active, by Selected Regions, in millions, December 2015

• Breakdown of Types of Payments Made with Mobile Money, by Number of Transactions and Value of Transactions, in %, December

2015

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TABLE OF CONTENTS (2 OF 3)

3. Middle East

3.1. Regional

• Share of Online Shoppers in MENA Who Prefer to Pay with Cash on Delivery, in %, March 2016

• Breakdown of Payment Methods Preferred in Online Shopping, in % of Online Shoppers in MENA, June 2016

• Breakdown of Share of Cash On Delivery, in % of E-Commerce Companies in MENA, October 2016

• Share of Cash On Delivery in Total Online Shopping in the Middle East, in %, 2015

• Share of Consumers Who Would Opt for Alternative Payment Methods, in %, and Selected Alternative Payment Methods They Would

Opt for, incl. “Mobile Wallet”, in %, May 2016

• Devices Preferred for Mobile Payment in the Middle East and Africa, in % of Internet Users with Bank Accounts, Summer 2016

• Breakdown of Attitude to Mobile Payment and Mobile Shopping-Related Activities, in % of Online Shoppers in MENA, March 2016

3.2. UAE

• Breakdown of Online Shoppers by Shoppers Who Prefer to Pay Online and Who Prefer to Pay On Delivery, in %, November 2016

• Share of Online Shoppers Paying by Credit Card, in %, June 2016

• Share of Payment Card Users Who Experienced Online Credit Card Fraud, in %, and Type of Online Credit Card Fraud Experienced, in

% of Fraud Victims, June 2016

• Share of Millennial Online Shoppers Preferring to Pay by Credit Card, in %, by Selected Product Categories, 2015

3.3. Saudi Arabia

• Top Payment Method Preferred in Online Shopping, by Selected Product Categories, in % of Millennial Online Shoppers, 2015

3.4. Iran

• Top 5 Reasons for Not Shopping Online, in % of Respondents, 2012 & January 2016

4. Africa

4.1. Regional

• Payment Methods Most Used in Online Shopping, in % of Online Shoppers, by Ghana, Kenya, South Africa, Uganda, December 2016

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TABLE OF CONTENTS (3 OF 3)

4. Africa (Cont.)

4.2. South Africa

• Payment Methods Used in Online Shopping, in % of Online Shoppers, October 2015

• Breakdown of Payment Methods Preferred in Online Shopping, in % of Online Shoppers, March 2016

• Share of Online Shoppers Who Would be Motivated to Shop Online More by Availability of the “On Delivery” Payment Method, in % of

Online Shoppers, March 2016

• Top Improvements That Would Make Online Shoppers Buy Online More, in % of Online Shoppers, March 2016

4.3. Nigeria

• Top 3 Payment Methods Used in Online Shopping, in % of Online Shoppers, October 2015

• Breakdown of Payment Methods Preferred in Online Shopping, in % of Online Shoppers, August 2016

• Number and Value of Internet and Mobile Payment Transactions, in millions and in NGN billion, 2011- 2015

4.4. Egypt

• Share of Online Shoppers Paying by Cash on Delivery, in %, June 2016

4.5. Morocco

• Payment Methods Used in Online Shopping, in % of Online Shoppers, February 2016

• Breakdown of Main Criteria Considered When Shopping Online, incl. “Payment Security”, in % of Online Shoppers, February 2016

• Number of Online Payment Transactions Made with Credit Cards, in millions, and Value, in MAD million, by Domestic Credit Cards and

Domestic and Foreign Credit Cards, 2012 – 2015

4.6. Kenya

• Mobile Payment Statistics, incl. Number of Transactions, in millions, Value of Transactions, in KES billion, Number of Customers, in

millions, and Number of Agents, in thousands, 2008 – 2015 & First Nine Months of 2016

• Purposes of Using Mobile Money Services, in % of Mobile Money Users, October 2016

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1. Management Summary 10 – 12

2. Global Developments 13 – 39

3.

3.1.

3.2.

3.3.

3.4.

Middle East

Regional

UAE

Saudi Arabia

Iran

40 – 53

41 – 47

48 – 51

52 – 52

53 – 53

4.

4.1.

4.2.

4.3.

4.4.

4.5.

4.6.

Africa

Regional

South Africa

Nigeria

Egypt

Morocco

Kenya

54 – 68

55 – 55

56 – 59

60 – 62

63 – 63

64 – 66

67 – 68

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Prefer Cash on Delivery 80%

Others 20%

80% of online shoppers in Egypt, Saudi Arabia and the UAE preferred

to pay with cash on delivery, as of March 2016. MENA: Share of Online Shoppers in MENA Who Prefer to Pay with Cash on Delivery, in %, March 2016

Note: multiple payment methods could be chosen in the survey

Survey: based on a survey of 1,003 respondents (32% in Egypt, 31% in Saudi Arabia, 37% in the UAE; 62% male, 38% female; 69% working, 31% not working), conducted in

March 2016; question asked “What is your preferred method of payment?“

Source: PwC, December 2016

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1%

9%

12%

13%

14%

14%

27%

27%

43%

0% 20% 40% 60% 80% 100%

Other

Prepaid Bank Card

International Bank Card

Paypal

Bank Transfer

Reseaux, Wafacash, etc.

Cash

Moroccan Bank Card

Payment on Delivery

in % of Online Shoppers

“Payment on delivery” (43%) was the most popular payment method

used by online shoppers in Morocco in February 2016. Morocco: Payment Methods Used in Online Shopping, in % of Online Shoppers, February 2016

Note: does not add up to 100% due to multiple answers possible

Survey: based on a survey of 1,000 Internet users, conducted in February 2016; ages 16+, from 40 cities (34% Casablanca, 12% Rabat, 7% Marrakech, 6% d’Agadir); conducted

online; margin of error +/- 3%; base of respondents for this question were 531 individuals

Source: Averty, April 2016

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