PayPal Insights: E-commerce in the Middle East

PayPal Insights
e-commerce in the Middle East
September 2013
2012-2015
With a focus on:

PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST
Connected commerce in the Middle East
Elias Ghanem
Managing Director, PayPal Middle East and North Africa
Conducting e/m-commerce research in the Middle East
Elie Aoun
President, Ipsos MediaCT in Middle East, Africa and Pakistan
Focus on e-commerce in 3 key countries of the Middle
East
Francis Barel
Business Development Manager, PayPal Middle East and North Africa
Innovation in connected commerce: The future of
payments
Dominique Moayedpour
Head of Technology Multi-Channel Retail, PayPal
Cash on Delivery - Why it doesn’t help e-commerce
Harith Al Anbari
Product Manager, PayPal EMEA
What challenges are entrepreneurs facing in the Middle
East today
Wamda; Astrolabs
EZStore.me: The e-commerce solution in a box
PayPal’s partners in the Middle East
The Middle East’s innovative merchants
Airlines: the largest online category in the Middle East
PayPal Express Checkout Solutions & Log In
with PayPal
Contents
1
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6
9
11
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15
17
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20
23
25

The Middle East, with one of the world’s
fastest growing internet population and
e-commerce market, is well-positioned
to embrace the new retail environment.
Smartphones have become ubiquitous
in the Middle East, already accounting for
65% of the mobiles in the top 3 markets
(KSA with 63% with a 74% penetration
of smartphones, Qatar with 70%, and
UAE), and almost 35% across the region.
This means that a majority of consumers
in the largest markets now walk around
with the internet in their pocket, a wealth
of information at their fingertips and a
new and powerful tool to transact and
make payments anytime, anywhere.
It is our great pleasure to share the
PayPal Insights: e-commerce in the
Middle East report. This report explores
the latest trends and data on how
e-commerce but also m-commerce are
radically changing the retail landscape
and the way consumers shop and pay in
the Middle East.
The mobile generation
This is the era of the connected
consumer who is always with a
networked device in hand. A new
generation of shoppers is coming on
board whose first experience with
online commerce will be through
mobile devices and social networking.
Retailers looking to attract highly
connected, digitally savvy consumers
will have to offer them a multi-channel
experience across online, mobile,
social and in-store.
In many cases, retailers in the Middle
East are at the early stages of their
online journey, with a huge opportunity
to leapfrog their international
counterparts. The Middle East has a
storied tradition of trade, commerce,
and wide selection of goods to offer
consumers. Online and mobile channels
can become a new way for these
merchants to reach yet an even wider
audience.
Today, online commerce platforms
available to retailers in the Middle East
are dynamic, affordable, and in many
cases open source, allowing merchants
to cost effectively embrace the latest
technologies. There is also a huge
competitive advantage to be garnered
by retailers integrating online and mobile
Theglobalretaillandscapeisataninflectionpoint,andoverthelastfewyears,onlinecommerce
has smashed down barriers in the Middle East. As 2013 is coming to a close, we are seeing new
trendsemergingine-commerce:theMiddleEastisembracingonlineshoppingbothwithlocal
e-merchants attracting local buyers but also cross border e-commerce exponentially growing
with international e-merchants catering to local consumers or even setting e-shops in the
Middle East. Shoppers are using all forms of technology to browse and shop, and particularly on their smartphones.With
these trends revolutionizing commerce in the Middle East, conversations around ‘online’and‘offline’retail are quickly
losing their relevance. As consumers get used to shopping across a variety of channels and platforms, both locally and
globally, the impetus is on retailers to innovate to offer 24 by 7 multi-channel shopping experiences and connect better
2
Elias Ghanem
Managing Director, PayPal Middle East and North Africa
Connected commerce
in the Middle East
with consumers.

3
footprints in addition to their traditional
offline presence. We are already seeing
many leading e-retailers like MarkaVIP,
Souq.com or Namshi offering their
customers the choice to shop 24/7 across
multiple channels and pay in an easier
and safer way to with PayPal. Remaining
innovative and maintaining relevance in
the new retail environment is the biggest
challenge all retailers are facing every day
in the Middle East.
The Middle East’s online
commerce market
The past year has seen huge and exciting
changes for online commerce in the
Middle East. The PayPal Insights:
e-commerce in the Middle East report
conducted in conjunction with Ipsos
shows that the Middle East’s online
commerce market grew 29% from $7
billion in 2011 to $9 billion in 2012. Last
year, we had predicted that the Middle
East’s online commerce market will
reach $15 billion by 2015 and this
year’s growth reveals that the market
is on track to meet our projected
growth figures. This growth was driven
by a massive jump in the Middle East’s
online commerce population, as well as a
flood of local retailers coming online and
offering local consumers what they could
only have found outside of the region
before.
In 2012, there were over 30 million
people shopping online in the Middle
East, an increase of 20% from 2011. The
healthy growth in online spending in the
Middle East is due to a number of factors:
new consumers purchasing online for the
first time; retailers establishing an online
presence or increasing the sophistication
of their current online offering; a number
of major international retailers marketing
directly to consumers in the region and
finally, the explosive growth of mobile
commerce.
7.0 bn
9.0 bn
11.2 bn
12.8 bn
15.0 bn
2011 2012 2013 2014 2015
Figure 1: Middle East & North Africa online
commerce market (USD Bn)
Source: 2013 PayPal Insights: e-commerce in
the Middle East
Figure 2: Online Shoppers
(in millions of people)
Source: 2013 PayPal
Insights: e-commerce in
the Middle East
2x growth from 2011 to 2015
2X
2011 2012
95M
Internet
Users
110 M
Internet
Users
25M
Online
Shoppers
30M
Online
Shoppers

PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST4
Figure 3. Top Online Spending
Categories in 2012.
Source: 2013 PayPal Insights:
Finally, it is now easier than ever to
get products delivered to the Middle
East, with concierge service such as
Shop and Ship from Aramex, which
enables consumers to shop from any
international merchants, even ones that
do not deliver in the Middle East
.
Top online commerce
spending categories
While travel remains the most popular
item for online shoppers, the PayPal
Insights: e-commerce in the Middle
East report has revealed increases
in spending on other items such as
computers, consumer electronics, and
fashion and jewelry.
Domestic online
commerce
Along with the dramatic growth in
spending and the online commerce
population, cross-border e-commerce
is booming in the MENA region, with
more than 70% YoY growth. The
growth is driven by the limited choice
currently available in the MENA region.
While everyday new e-merchants open
their e-store in the region, the majority
of the shopping remains cross border
distributed among the US (35%); Asia
(30%) and Europe (25%), the intra MENA
region represents already 10% of e-trade.
Indeed, local online offering is growing.
The PayPal Insights: e-commerce in
the Middle East report shows that
consumers in the Middle East love to
shop on Souq.com or Wysada to discover
new trends and incredible products.
Top reasons to shop
online
Convenience, lower prices and variety
are the key drivers for domestic online
purchases. For domestic retailers, the
message is clear – consumers in the
Middle Easte are more willing than ever
to take out their digital wallet for a wider
range of products online as they enjoy
the convenience of shopping anytime,
anywhere without having to step into
a store. Consumers list convenience as
their number one reason to shop online
in 26% of cases, lower prices in 18% of
cases and variety of products and offers
in 15% of cases.
Annual spending
(USD)
Travel
Consumer electronics
Computers
Jewellery/watches
Event tickets
Sports equipment
Car parts
Food and drink
Fashion & accessories
Household products
$1,521
$250
$248
$222
$201
$192
$176
$133
$108
$107

Key concerns of online
shoppers
Security is a concern for all online
shoppers, whether it comes in the
form of payment fraud, non-delivery or
counterfeiting. MENA shoppers listed
security as their number one concern
for shopping online in 40% of cases.
As the online commerce environment
expands and changes in the Middle East,
there is a greater need for a simple and
safe payment solution for a multi-channel
shopping experience. Enabling more
secure online transactions for businesses
and consumers, regardless of what
channel they go through, is central to
PayPal’s proposition.
PayPal enables consumers to make
safer online payments by not sharing its
users’financial details with millions of
merchants worldwide that accept PayPal.
The“PayPal Buyer Protection”program
protects online shoppers if they don’t
receive an eligible item (physical goods)
they have purchased from websites that
accept PayPal, or if they receive an eligible
item which is significantly different
than described on the website. We also
protect our merchants from fraudulent
transactions to help them sell with more
confidence to domestic and global
buyers.
5
Scan To Shop.
PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST 5
89
44
16
16
16 15
14 13 12 11
11
9
42
47
24
30
35
25 23
29 29
32
26
22
63
25
13
18
16
10
16 14 14 16
8
12
Home Office / work
place
Internet cafes Hotels Restaurant,
eating places,
malls
In a shop Educational
institution
Waiting for
transport e.g.
airport, train
station
In transit e.g.,
on flight, train
or bus
Open public
areas e.g.,
park
Medical
facility
(doctor,
hospital)
Public library
Tablet
Smartphone
Desktop/Laptop/Notebook
Home Office/Work
place
Internet
Cafes
Hotels Restaurant
eating places,
malls
In a shop Educational
institution
Waiting for
transport e.g.
airport, train
In transit e.g.
on flight, train
or bus
Open public
areas e.g,
park
Medical
facility (doctor,
hospital)
Public
library
Figure 4: Where are
Middle Easterns
making their
purchases (in %)
Source: 2013
PayPal Insights:
e-commerce in the
Middle East

On behalf of PayPal, Ipsos conducted
market research across the Middle East
with a specific focus on KSA (Kingdom
of Saudi Arabia), Qatar and UAE (United
Arab Emirates) to identify the key
e-commerce trends in the region. The
2013 PayPal Insights: e-commerce in
the Middle East report highlights the
rapidly changing attitudes and habits of
the Middle Eastern consumers towards
e-commerce, popular mobile shopping
categories, and opportunities for Middle
Eastern retailers.
Research highlights
The growing number of smartphone
and Tablet devices in use is changing
the purchasing habits of residents in
the Middle East who are driven by a
desire for convenience, the ease of
getting information, and the search
for inexpensive products. Due to
the increased use of mobile devices,
consumers are offered a greater number
of channels through which they can
shop for and purchase products. As
a result there has been an increase in
an individual’s total online purchase
expenditure as well as an increase in the
range of products they purchase.
From airline tickets to computers, from
jewelry to fashion, shoppers are finding
it easier to make online purchases. For
that, efforts are being put to facilitate
online payments and secure them as well
as eliminate barriers in the transaction
process.
Methodology
The PayPal Insights: e-commerce in
the Middle East report aims to develop
a greater understanding of the Middle
East’s online shoppers’behavior and
payment methods. In the UAE and KSA,
research was conducted through online
interviews. Representative samples
of 511 respondents from the UAE and
800 from KSA were taken from people
who use internet-enabled devices (e.g.
computer, smartphone, Tablet). Of
those surveyed, mobile shoppers were
comprised of 26% smartphone shoppers
in both the UAE and KSA. Tablet shoppers
were 16% in the UAE and 13% in KSA.
In Qatar, the same research was
conducted through computer aided
telephone interviews (CATI). The sample
consisted of 500 respondents recruited
from a nationally representative online
sample. Of those surveyed, mobile
purchasing behavior consisted of 4%
smartphone shoppers and 6% Tablet
users.
Conducting e/m-commerce
research in the Middle East
Elie Aoun
President Ipsos MediaCT in Middle East, Africa and Pakistan

0.5 bn
0.9 bn
1.3 bn
1.8 bn
3.0 bn
2011 2012 2013 2014 2015
Overview
e-commerce in the Middle East is expected
to continue to show robust growth in the
region, supported by the acceleration
of m-commerce. Mobile transactions
already represents 10% of e-commerce
(similar to the rest of the world), our
research shows that with a 6 times growth
in the next 4 years, m-commerce will
represent close to 20% in the Middle
East in 2015. This means that while
purchasing via desktop/laptop remains
dominant, there is a mobile mind-shift
occurring with the rise of tablet and
smartphone penetration.
In KSA, e-commerce is projected to
increase from 1.00Bn USD (3.8Bn SAR)
in 2012 to 2.70Bn USD (9.9Bn SAR) in
2015. M-commerce in KSA is projected
to increase from just under 0.10Bn USD
(0.4Bn SAR) to over 0.70Bn USD (2.6Bn SAR)
in the same time period, driven by a rise in
sales through tablets. Smartphone users
constituted 26% of KSA mobile shoppers
while Tablet users constituted 13%. 66% of
KSA online users purchased online in 2012.
In Qatar, e-commerce is forecast to
increase from 0.70Bn USD (2.6Bn QAR)
in 2012 to 1.25Bn USD (4.6Bn QAR) in
2015. M-commerce is forecast to increase
from a little bit less than 0.1Bn USD (0.4Bn
QAR) to over 0.45Bn USD (1.7Bn QAR) in
the same time period, driven by a rise in
sales through smartphones. Smartphone
users constituted 4% of mobile purchase
behavior while Tablet users constituted
6%. 28% of Qatari online users purchased
online in 2012.
In UAE, e-commerce currently stands
at 2.90Bn USD (10.7BnAED), and is
expected to grow to 5.10Bn (USD
18.7Bn AED) in 2015. From its current
base supported by high smartphone
penetration, m-commerce is predicted
to grow to nearly 1.50Bn USD (5.5BnAED)
by 2015 and will be driven up by a rise in
Tablet penetration and purchases.
Figure 1: Middle East & North Africa
m-commerce market (USD Bn)
7
Figure 2: Top 3 Online
commerce markets in the
Middle East & North Africa
(in Bn USD)
e-commerce in the Middle
East
2.9
5.1
1.0
2.7
0.7
1.25
20152012
Kingdom of Saudi
Arabia
Qatar
United Arab
Emirates
6X
6x growth from 2011 to 2015

How are they buying?
Purchases made on a computer remain
the most dominant throughout the
Middle East, especially to buy computers
or airline tickets. However, m-commerce
is expected to grow in almost all
categories within the three countries.
56% of total online shoppers in KSA make
their online purchases from home or at
work, while 55% do so in UAE and 90%
in Qatar. In KSA, smartphones are used
to make purchases most frequently at
home, in the office, and in transit while
tablets are also used primarily at home.
In Qatar, growth in mobile sales will be
driven more by smartphones than Tablet
transactions. There is a high penetration
of mobile devices in Qatar with over
half of consumers already owning a
smartphone (63% of online users own
a smartphone while only 14% own a
Tablet).
Annual spending
(USD)
$655
$312
$293
$249
$209
$193
$149
Figure 3: Top Merchants in the
Middle East & North Africa by
average annual spending per
online shopper
What do consumers
want?
Retailers looking to grow their
m-commerce footprint should focus
on ensuring user-friendly experiences,
taking into account variables such as
screen size, and build on the convenience
afforded by mobile devices. Incentives
such as coupons could also help drive
consumer interest in mobile purchasing.
Throughout the Middle East,
smartphones are considered highly
convenient but consumers say that
using the device for purchasing leaves
room for improvement, primarily
due to the small size of the screen.
Therefore, smartphones are often used
by consumers for immediate, on-the-go
needs such as comparing prices in a store
or to find store locations.
Consumers find that using tablets
somewhat is more enjoyable for
shopping online than smartphones.
However, the main barrier to online
shopping for Tablet users is the feeling of
a lack of security during the transactions.
Lack of user-friendliness is a primary
barrier towards even greater adoption
of mobile purchasing. 48% of KSA
consumers reported they would be very
likely to make online purchases in the
future if merchant websites became more
mobile-optimized.
Coupons could also be a way to help
drive mobile shopping. One out of three
consumers in Qatar claims they would
be much more likely to buy on a mobile
site with a coupon incentive. Similar
behavior is recorded in the UAE where
almost a quarter of the online users feel
they would be much more likely to make
purchases using their mobile if they had
a coupon, while over one third of KSA
online users have made the same claim.

Convenience, trust and
choice
e-commerce in the Middle East is
booming thanks to several drivers.
Consumers are telling us that: the main
reason to shop online is convenience;
the biggest challenge is trust; and the
biggest opportunity is choice.
While it is understandable that some
people simply prefer to shop in-store,
the highest ranking barriers to online
shopping in the region include security
of online payment and wanting to get
items immediately.
This highlights the importance of
ensuring that consumers understand
how they are protected when shopping
online.
The main reasons why consumers
spend more online include ease and
convenience in ordering and receiving
their order, discounts and promotions,
cheaper prices online and greater
variety of items available.
Similarly, consumers would be less likely
to abandon an online purchase if there
had been free shipping and multiple
payment options.
In KSA, some online shoppers spend less
on online shopping due to unsecure
methods, and a small minority of online
shoppers spend less because shipping
is expensive, or because they prefer to
see items before shopping. While online
shoppers in KSA spend more on online
shopping, a lot of them buy online due
to the easiness/ convenience in ordering
and receiving the order, and a minority
spend more because the goods offered
online are much better than those
available in store.
In Qatar, some online shoppers spend
less on online shopping because they did
not get the items that was shown on the
website, and a small minority spend less
to save time, are not satisfied, or because
they plan to split their expenses between
online and offline. While respondents in
Qatar spend more 41% due to cheaper/
lower prices, and 2% spend more
because of security.
In UAE, some online shoppers spend
less on online shopping due to their
preference to see the items closely before
buying, and a small minority spend less
because they do not trust the displayed
merchandise or because the product is
expensive. While most online shoppers
in UAE spend more on online shopping
because of the easiness/ convenience
in ordering and receiving the order
and some online shoppers spend more
because of the improvement/increase in
the number of websites that offer goods
online.
e-commerce in the
Kingdom of Saudi Arabia
Trends in e-commerce: In KSA there
has been 36% to 55% growth in mobile
commerce penetration across all
segments of online shoppers, with close
to four in every ten consumers showing
the potential to make purchases via their
mobile devices. Furthermore, higher
earning professionals show the greatest
potential to spend more, particularly
Arab expats, those in their mid-20s to
early 30s and those living in Riyadh.
What are Saudis buying: In KSA, travel
has the highest online share at 59% and
the highest average annual online spend
per person at SAR 1,793 (USD 478). The
purchase of computers accounts for the
second highest average annual online
spend, at SAR 646 (USD 172). Similarly
in KSA, Souq.com is a top visited retailer
with a high average expenditure of SAR
1,882 (USD 501). KSA online users claim
that online share will increase for most
categories, excluding travel in 2013. 46%
of online shoppers have bought from
overseas websites, doing so primarily to
gain access to goods they cannot find in
KSA.
How do Saudis shop: In the Middle East,
Cash on Delivery represents more than
80% of online purchases, followed by
cards at 15% and PayPal at 5%. PayPal
is expected to grow at 15% by 2015. In
KSA, for payments on domestic websites,
Cash on delivery (COD) dominates with
almost 70% of payments, followed by
credit cards with 15% and auto-debit
(Sadad) at 10%; PayPal accounts for 5%
of the online payments. Credit cards
and PayPal are the preferred forms
of payment for international sites,
accounting for 44% made with cards
and 33% with PayPal. COD is the main
payment method for smartphone users
(at 31%) and Tablet users (at 36%). In KSA
PayPal is the chosen method of payment
for 13% of online purchases made from
smartphones and 17% of purchases
made from tablets.
9
Francis Barel
Business Development Manager, PayPal Middle East and Africa
Focus on e-commerce in 3 key
countries of the Middle East

e-commerce in Qatar
Trends in e-commerce: In Qatar, growth
is predominantly driven by an increased
penetration of online shopping across
categories, especially travel. About a
quarter (28%) of consumers shopped
online in the past 12 months. Further,
online share is usually lower for the
higher spending categories, though
travel is an exception with a 34% online
share and an average annual spend of
over QAR 2,457 (USD 674). Online share
is projected to increase from 34% to
76% in Qatar by 2015. Travel and sport
equipment currently have the highest
proportion of online spend at 20%
though travel tickets have the highest
average online spend at QAR 746. The
top online retail site visited was Qatar
Airways, followed by eBay, then Amazon.
37% of online shoppers have made a
purchase at Qatar Airways which has the
highest average spend per purchase at
QAR 2,460 USD (USD 675).
What are the Qataris buying: In Qatar
most online spending is done on a
desktop computer averaging 86.6% of
total purchase, while smartphones and
tablets only account for 10.2% and 3.2%
of online spend shares respectively.
Qatari shoppers tend to make their
purchases at home or at work. Desktop
and smartphone owners are more likely
to be expats predominantly in their mid-
20s to early 30s, living in Doha whereas
Tablet users are more likely to be Arabs
living in a larger household with children
at home. High income groups show the
highest potential for spending, especially
expats, people in their mid-20s to early
30s and those living in Doha or Al Rayyan
region.
How do Qataris shop: In Qatar, 7% of
online shoppers use PayPal to complete
their transactions. Credit cards are used in
18% of the cases, and COD is used for the
remainder, 75% of the time. PayPal users
tend to be male, 25-34 years old, expats,
and live in Doha City. These PayPal users
mainly make purchases from Qatar
Airways (35%), Air India (27%), and eBay
(24%). People living in large households
with children at home are more likely to
be PayPal users as well as make cross-
border purchases. Over half of online
consumers have made a purchase on an
overseas website.
e-commerce in the Unit-
ed Arab Emirates
Trends in e-commerce: In the UAE
higher income earners, both professional
and management, show the greatest
potential to spend more, especially
expats (Asian, Western, etc.), those in
their mid-20s to early 30s and those living
in Dubai.
What are the Emiratis buying: In the
UAE, travel has the highest online share
at 67% and the highest average annual
online spend at AED 2,024 (USD 551). The
purchase of computers accounts for the
second highest average annual online
spend at 500 AED (USD 136). In the UAE,
52% of the respondents shop at Souq.
com. Among local stores shopped at,
Souq.com marked the second highest
average expenditure of AED 987 (USD
268) per purchase.
How do Emiratis shop: PayPal follows
card as the fourth preferred method
of payment for purchases made on
domestic sites at 6%. For purchases made
on international sites, PayPal is the third
most used method of payment at 30%.
In the UAE, credit cards are the second
payment method used for shopping
on computers after COD, which is also
preferred by online shoppers using
smartphones and tablets. After COD
and credit cards, PayPal is the third
predominating method of payment
for smartphone users at 27%, it also
constitutes 20% of the payment methods
chosen by Tablet users.
Payment methods for e-commerce in the Middle East
10 PAYPAL INSIGHTS : E-COMMERCE IN THE MIDDLE EAST
5%
15%
80%
60%
15%
25%
20152012
Cash on Delivery
Payment Cards
Paypal
Figure 5: Payment methods for

The lines between the“offline”and
the“online”worlds are blurring.
Click and collect, click and delivery,
ROPO (Research Online Purchase
Offline), web to store, showrooming
or digital in store, all these terms are
describing new shopping experiences
where the consumer navigates
among various shopping channels
and touchpoints thanks to multiple
connected devices (laptop, tablet and
smartphone). Multichannel is becoming
Crosschannel and Omnichannel:
A retailer or merchant needs to offer its
products on all channels, all the time,
with a seamless and homogenous
experience. The battle between
commerce and e-commerce is over, it is
now the age of the connected commerce.
PayPal is leading the way thanks to its
vision of a Digital Wallet, as well as four
major initiatives in its international
markets, including two exciting
alternatives to Cash On Delivery (COD).
PayPal’s vision for the
Digital Wallet
PayPal is redefining money and pioneering a
revolution in the way we pay. We’re working
at creating a better shopping experience
from start to finish, no matter what’s being
bought, when and where it’s being sold,
or what device is used to pay for it – PC,
smartphone, tablet or games console,
for example. PayPal’s vision for the future
of money is broader than just payment
checkout and focuses on helping to connect
retailers and shoppers throughout every
phase of the purchase process. Nothing
symbolizes this more than PayPal’s vision of a
digital wallet. We are re-designing our digital
wallet for consumers to make money work
better in today’s rapidly changing multi-
channel shopping environment. It is both
digital and mobile – and it allows consumers
to do things with their money that have
never been possible before.
A glimpse of what PayPal’s new digital wallet
could allow consumers to do in the future:
Separate the purchase from the
payment: Buy something in a store, take it
home and decide later how you want to pay
for it. PayPal’s wallet would in the future offer
you a grace period during which you can
switch funding sources, decide to pay over a
period of time in installments or use different
sources of value to pay by combining things
like gift cards, airline miles or loyalty points.
Personal lists: Search for items, compare
prices and create lists of things you want to
buy.
Find the best deals: The new PayPal
digital wallet will find deals and discounts for
items on your personal lists once you are in a
store. You will never miss a discount again.
Help create rules: Create specific“set
asides”like set aside travel funds or funds
for your children’s education or set rules by
purchase amount. For example, you could
designate a bank account for all grocery
store purchases and a specific credit card
for entertainment and travel directly from
PayPal. All you would need to do is pay via
PayPal, and the platform would automatically
recognize whether a specific payment
should be drawn from a credit card or a bank
account.
The new digital wallet will not have a finite
set of features, and will evolve with the pace
of innovation, allowing us to incorporate
new functionality as consumer demand
shifts. It will usher in a new era of commerce
for consumers and retailers, where we can
maximize the power of digital money.
Innovation in connected
commerce :
The future of payments
$
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LOYALTY
SELF
SCANNING
& SELF
CHECKOUT
INSTORE
PRICE
COMPARISON
SHOPPING
LISTS
STORE
LOCATION
PAYMENT
MOBILE
COMMERCE
PROMOTIONS
& COUPONS
Mobile shopping is becoming
increasingly multi-channel
Head ofTechnology Multi-Channel Retail, PayPal
Dominique Moayedpour

PayPal Check-in
Check-in with PayPal allows consumers to
pay in a store without ever getting their
their wallets out, whether to take a card
or cash out.
It’s as simple as checking into a popular
social media app: once a consumer
confirms he has entered a store, any
items the consumer wishes to purchase
will be deducted from his PayPal account.
The consumer will then be able to enjoy
the same usual benefits he has with
purchasing online with PayPal, with the
convenience of trying the items and
deciding which one the consumer wants
to buy.
How PayPal solutions
could offer alternatives to
COD around the world
PayPal’s Pay After Delivery
PayPal and Mondo Convenienza, a leading
furniture player in Italy, have designed a
product that allows the consumer to pay
for a small deposit online and for the final
balance only once the goods are delivered
and installed at home, via a QR code on
the invoice. This is even more convenient
for Mondo Convenienza’s customers as
they are ordering expensive and complex
furniture, and it is more reassuring for
them to only pay once the furniture are
installed at their home
PayPal is the best partner to progressively
merge the real and virtual worlds, and
Mondo Convenienza has been expanding
and decreasing its orders paid via COD
thanks to PayPal’s Pay After Delivery
PayPal Here
PayPal Here is a pocket-size payment
device that connects via Bluetooth to a
smartphone and enables small retailers,
couriers and on-site service providers to
receive card payments on-the-go during a
face-to-face interaction with the consumer.
This device allows businesses to never
turn away sales because the customer has
no cash, and it allows online merchants
to equip their couriers with the device to
receive payments via card at delivery.
In addition, by limiting cash at merchants,
the cost of cash decreases, whether it’s the
cost of handling and depositing funds at
the bank or managing the treasury while
waiting for the cash to come into the bank
account.
PayPal has not made any announcements
at present about bringing PayPal Here
to other markets, but PayPal is always
looking at the most appropriate consumer
experiences to bring to each market.

COD has obvious and hidden costs for
all participants of the ecosystem:
• It is expensive for merchants, as it
limits their growth and visibility;
• It is costly for the courier and logistics
services involved in the delivery
creating numerous inefficiencies and
challenges;
• It limits the growth of the ecosystem
and the entrance of players, which
could potentially increase the variety of
offerings;
• It is expensive for consumers as it
increases the cost of delivery and the
inconvenience of having to be present
for the delivery.
COD is a true plague for merchants in the
region. It is hampering their growth and
increasing the cost of doing business in
the Middle East. The many costs of COD
for merchants are:
• Extremely high returns: Up to 40% of
the goods are returned today in the
Middle East, with higher rates than in
countries where COD is not as
dominant, sometimes as high as twice
as many returns (returns can be“no-
shows”or consumer changing their
mind);
Our research has shown that in 2012, 80% of all online purchases in the Middle East
were made via Cash on Delivery (COD). While COD is present across all emerging
markets, it has created some particularly high costs for the whole Middle East
e-commerce ecosystem.
• Cumbersome treasury funding:
Merchants have to wait up to 4 weeks
before they receive the funds;
• Expensive cash management: Handling
cost, thefts, security, etc.;
• High accounting & transfer fees.
In addition, COD also has significant
costs for courier services:
• Costly resources: Logistics companies
have to have dedicated staff and
resources to handle COD;
• Cumbersome management: Courier
services have to manage the customer
relationship directly to coordinate
directly, which is not their core business.
Furthermore, COD is limiting the growth
of the ecosystem:
• Low transparency: Cash transactions are
not reported as thoroughly as
electronic transactions and therefore
limits the transparency for governments
and regulators;
• High cost of entry: New e-commerce
merchants have to think twice before
starting their business in the Middle East
as they have to anticipate all the costs
related to COD;
• Higher point of profitability: New
e-commerce merchants in the Middle
East reach profitability much later
because of the heavy cost of COD.
Finally, contrary to popular belief, COD
also has a high cost for consumers:
• Consumers pay more for COD as
merchants charge the handling &
logistics hassle of COD, sometimes up
to 5 USD;
• Consumers have to be present at
delivery and need to coordinate over
the phone with the courier, sometimes
through 9 or 10 calls;
• Consumers have to have cash on hand
for costly items, greatly diminishing the
whole comfort of shopping from home
if cash needs to be obtained from a
bank or ATM.
Harith Al Anbari
Product Manager, PayPal EMEA
Cash on delivery
Why It does not help e-commerce

Despite these costs, consumers still
prefer COD over other payment methods,
because they do not have to enter credit
card information:
• It gives them a sense of security;
• It is very simple to use.
As the PayPal Insights report has shown,
security and convenience are the most
important concerns for consumers.
However, COD comes with such a high
cost in exchange for security and
ease of use that it is definitely not a
reasonable nor sustainable solution
for e-commerce in the Middle East.
The e-commerce market will truly
grow and benefit merchants when
electronic payments are fully embraced
by consumers. As an example, Italy has
seen a decrease in the use of COD from
75% of online transactions in 1999
to less than 5% in 2013, replaced by
electronic transactions that allowed for
better visibility, trust and planning on
both the merchants’and consumers’side,
contributing to an incredible growth of
the market.
PayPal and some top merchants of
the Middle East like MarkaVIP, Namshi
and Aramex are committed to tackling
Cash on Delivery in the Middle East.
PayPal is investing significant efforts
through a customer-driven Innovation-
methodology to determine the root
causes of customers’preference for COD.
After determining these root causes,
potential solutions and product concepts
will be tested in a real environment,
aiming for concrete results within the
next twelve months.
Since consumers are looking for
security and convenience, and those
two elements are part of PayPal’s DNA,
PayPal is committed to offer the best
alternative to COD to consumers and
merchants in the Middle East.

What challenges are enterpreneurs
facing in the Middle East today
e-commerce is definitively one of the
fastest growing and most promising
online sectors in the Middle East and
North Africa today. While the offline
retail market, valued at $425 billion,
still far exceeds online spend (valued
at $9 billion, as mentioned on page 3),
online shopping will increase as basic
infrastructure enables better logistics,
more payment options and general
consumer trust.
Challenges in the sector abound,
beginning with logistics. In a complex,
fragmented market, most e-commerce
companies have opted to handle their
own last mile delivery and develop
in-house logistics solutions, to minimize
their delivery times. Another challenge
is warehousing: stocking items can also
be difficult, when reliable and affordable
partners are hard to find, although
solutions like Aramex continue to provide
for most e-commerce startups.
Local warehousing and in-house logistics
help companies reduce their rates of
undelivered packages and returns,
which can be costly due to high import
duties in several markets and a regional
preference for payment via cash-on-
delivery (COD), which can reach 70%
of purchases in markets such as Saudi
Arabia, Jordan, and Egypt. To mitigate
losses, many companies have improved
confirmation, activated an option for
credit or debit card payment on delivery,
and offered“doorstop trials,”in which a
customer tries on various sizes while the
delivery man waits outside.
Companies expect COD order rates to fall
once consumers become more trusting
of online payment gateways; however,
finding a payment gateway that is both
secure and affordable is also a challenge
in many markets.
The hurdle that underpins the rest,
however, is simply a widespread lack of
consumer trust in online shopping.
This trend is rapidly changing, as globally
trusted payment gateways like PayPal
open in new markets, and companies
reduce delivery times to guarantee good
customer experiences.
Wamda is a platform designed to empower
entrepreneurs in the MENA region, with
Wamda.com designed to spotlight the
stories of small businesses throughout
the region, Wamda Capital Fund aimed
at investing in early stage startups in the
MENA region, and programs and products
geared towards helping startups set up,
run, and grow a company.
Nina Curley Editor in
Chief for Wamda

Muhammed
Mekki, Founding
Partner, AstroLabs
After running our AstroLabs Scaling
Online Startups program across several
countries in MENA, we have identified the
following top three challenges facing the
founders of the highest potential startups
in the Middle East today:
1) Talent: Finding top quality managerial
and technical talent willing to jump from
stable jobs into risky entrepreneurial
ventures is extremely difficult in this
region due to a lack of familiarity with the
industry and a preference for established
brands.
2) Funding: Although the region is a
global source of capital, sophisticated
VC investors funding local startups are
in limited supply and will likely continue
to be until success stories proving the
investment thesis emerge.
3) Support: MENA startup growth is
slowed because founders often tackle
core business challenges, such as
payments and digital marketing, without
the support of peers or advisors who
could share past lessons and propose
tested solutions to their problems.
Despite the challenges facing
entrepreneurs in the region, startups
are sprouting everywhere from Riyadh
to Casablanca. As the profiles of these
companies rise, success stories are bound
to emerge. When they do, top talent and
smart capital will flock to the industry.
Supporting the development of these
success stories now is critical.
AstroLabs is an entrepreneurship
development platform for the Arab
world. Its flagship program, Scaling
Online Startups, brings together founders
of MENA’s best startups for intensive
workshops on accelerating company
growth. Partnered with global leaders
including PayPal, Google, Microsoft, and
Aramex, AstroLabs aims to create lasting
bonds among entrepreneurs and deliver
impactful, actionable content for startups
in cities across the region.

The world’s leaders in e-commerce have
partnered to offer entrepreneurs and
SMBs the quickest, easiest and cheapest
solution to go online. There are more
than 15,000 merchants in the UAE only
looking to go online and start transacting
with the world. EZStore is the perfect
one-stop-solution to bring them online.
Any company with an existing store
can now go to www.EZStore.me and
create within a few minutes their own
e-commerce website, with payments,
logistics and marketing solutions already
integrated in the EZStore solution.
Aramex provides logistics solutions
and ensure that the goods are delivered
safely and on time to their destination, at
great rates.
Google provides vouchers for AdWords,
and will provide the merchants with
videos and tutorials to learn how to best
use AdWords and the fantastic Google
tools available to merchants to help them
bring traffic to their website.
PayPal provides the payments solutions,
enabling the new e-commerce website
to receive payments from any of the 132
million PayPal users in the world, as well
as any new PayPal user that signs up with
PayPal on the website.
And ShopGo packages all these different
offers into one single, easy-to-use
solution.
EZStore.me is the first“ec-
commerce in a box”in the
Middle East and North Africa
looking to enable and boost the
e-commerce in the region, led by
the world’s leaders of each field.
Here are 10 tips on how
to start a successful
online business:
1. Do your research: Analyze market
needs. See what your competitors are
offering and what their strategies are.
2. Think about the logistics: How are
you going to process orders, manage
inventory and returns?
3. Optimize the customer journey:
Simplify your buying process. The longer
it takes, the more likely you’ll discourage
your customers from completing sales.
4. Keep your pricing clear: Show all
costs upfront and don’t add additional
charges after your customers have
confirmed their basket.
5. Offer several ways to pay: Display the
logos of the payment methods you offer
on key pages of your site
6. Don’t forget about sales from
mobiles: Sales from mobile devices are
increasing, so make sure to adapt your
website and checkout process for your
mobile customers.
7. Ensure your website is searchable:
Work on the SEO (Search Engine
Optimization) of your site and plan a
marketing budget. That is why EZStore.
me offers Google integration so that you
can optimize your marketing budget.
8. Establish trust with your customers:
Excellent customer service is essential
and will be rewarded. Try to inform them
about the status of their order and what
stock is available.
9. Nurture customer relationships:
Send newsletters and consider rewarding
loyalty. Personalize your relationship with
customers by tracking the results of your
marketing communications.
10. Choose the best solution for
creating your website: EZStore.me is the
simplest, quickest and cheapest solution
to go online.
EZstore.me:
The “e-commerce solution in a box”

PayPal and QNB have signed a strategic partnership making QNB the first bank in the Middle East
to offer the four following functionalities:
• Account Creation: All QNB customers can now create a Verified PayPal Account from their secure
QNB e-banking website
• Debit cards enablement: A challenge in the Middle East is that not all bank customers have
a credit card. But every QNB customer has a debit card. QNB’s teams have now enabled QNB
customers that do not have a credit card but only a debit card to transact online via the creation
and use of a PayPal Account
• Top Up: All QNB customers can now top-up their PayPal accounts from their secure QNB
e-banking website
• Send Money: All QNB customers can now send money to any PayPal account in the world, from
their secure QNB e-banking website
Qatar National Bank is the largest bank in Qatar, by assets and customer base. QNB Group has
steadily grown to be the largest bank in the Middle East and North Africa Region and is by far the
leading financial institution in the country with a market share exceeding 45% of banking sector
assets.
Bloomberg Markets, the leading provider of Business, Financial and Economic news has ranked
QNB as the World’s Strongest Bank in its 2012 ranking. The 78 banks in Bloomberg’s ranking list
included some of the largest and most renowned financial institutions in the world, with QNB
being the only bank from the MENA Region.
PayPal’s partners in the Middle East

Aramex is a leading global provider of comprehensive logistics and
transportation solutions. Established in 1982 as an express operator,
the company rapidly evolved into a global brand recognized for
its customized services and innovative multi-product offering. In
January 1997, Aramex became the first Arab-based international
company to trade its shares on the NASDAQ stock exchange. Today,
Aramex employs more than 13,900 people in over 354 locations
across 60 countries, and leads a strong alliance network providing
global presence, and bringing together 40 independent express
companies from around the world. Aramex Shop and Ship (www.
shopandship.com) is the leading cross border online delivery brand
in the Middle East and North Africa. Shop and Ship (SnS) is 100%
focused on handling and delivering international online purchases.
Aramex introduced Shop and Ship in 2000 with the aim of making
online shopping simpler for people across all regions. As a“Shop and
Shipper”, individuals get 6 personalized lifetime accounts in New
York, London, Shanghai, Dubai, Mumbai and Istanbul for only a one-
time membership fee of USD 45 which can be paid online by using a
credit card or PayPal.
Shoppers now have the chance to explore the amazing avenue
of online shopping without having to bare high international
shipping costs or face the disappointment of stores not shipping
internationally. A solution introduced to help customers order their
favorite items with reasonable shipping costs that can be tracked at
any time using the online tracking feature on shopandship.com or
the SNS Apps.
From quaint specialty stores to the high streets of the fashion
capitals of the world, every item is within your reach with just a click.
Aramex and PayPal work together to offer consumers the
ability to pay their Aramex shipping fees with PayPal, as
well as register for the life-time Shop and Ship Membership
with PayPal. PayPal’s integration with Shop and Ship
demonstrates the platform’s commitment to the Middle East
and North Africa, as Shop and Ship is the best solution to
bring items to the MENA region that were purchased with
PayPal on global websites. Shipping and payments are the
two most important elements to e-commerce in addition to
choice. If the customers find trusted solution for both, then
they will be able to help local companies develop their sales
and ship to an even wider audience.
ShopGo is an active player in the“PayPal channel partner
program”and offers PayPal as part of their menu of solutions
to their customers either in the set up phase or for already
existing e-stores looking to expand their payment solutions
to better align with their local and international customers’
needs.
ShopGo is an online e-commerce solution. Through its
efficient & user-friendly platform, it enables beginners and
experts alike to build, manage and monitor a simple and
interactive store on their own. ShopGo focuses on the MENA
region, providing multiple localized solutions and tools
to ensure that its customers have all they need to run a
successful online business.
ShopGo offers all the features a merchant needs to go
online, packaged in an efficient, user-friendly interface:
MENA Localized Payment and Shipping Solutions; Full Online
Hosting; Easy-to-use and User-friendly Admin Panel.

Namshi is one of the most popular destinations in the
Middle East for fashion and footwear. Namshi brings an
extensive range of local and international brands to its
customers and ensures their customers’satisfaction and
comfort while shopping. The company promises the latest
trends and brands as well as high service levels through its
customer engagement team. Through their fast (next-day
delivery in the UAE) and free shipping and 14-day return or
exchange policy, Namshi believes in making the customer’s
shopping experience happy and convenient.
Namshi recently snatched up two prestigious awards - The
“Retail leadership Award”at the Asian Retail leadership
Awards Ceremony and“Retailer of the Year”at the InRetail
summit.
Namshi and PayPal have had a long-standing relationship,
with PayPal enabling secure and easy payments on
Namshi’s website as well as mobile website since Namshi’s
first days. PayPal offers secure and easy payments, and
Namshi delivers choice and service: a great combination to
help e-commerce grow in the Middle East.
MarkaVIP was established as an exclusive shopping community where
members can discover private sale campaigns that offer unique brands
and styles for just a brief window of time.
The company focuses on the most sought-after collections from the
premiere brands and boutiques in the world. MarkaVIP was founded by
experienced professionals at leading firms in the fashion and lifestyle
products industry. MarkaVIP has distinguished itself by offering an
amazing collection of new brands, latest fashions and privileged prices.
MarkaVIP has also invested in its own logistics and last-mile delivery
service to extend the quest for quality from the brand to its customers.
MarkaVIP and PayPal have partnered to make MarkaVIP the first
pure player in the MENA region to offer its customers a direct
billing agreement by PayPal. MarkaVIP can now offer its customers
convenience and peace of mind of online payment in one easy click.
MarkaVIP and PayPal have also partnered on innovative marketing
campaigns to offer their customers great promotions on incredible
products and exclusive items. Such initiatives are having a significant
impact on enhancing trust among consumers and increasing the
adoption of online payment.
The Middle East’s innovative
merchants

Souq.com is the largest e-commerce site in the Arab world, featuring
more than 200,000 products across categories such as consumer
electronics, fashion, household goods, watches or perfumes. Today
Souq.com attracts over 17 million visits per month and is fast
growing as more consumers shop online in the Arab world.
Established in 2005, Souq.com pioneered online shopping in the
region launching in the UAE in 2006 and quickly moving into other
key markets such as Kingdom of KSA, Kuwait and Egypt. Souq.com’s
technical and development team is based in Jordan.
Built on the basic fundamentals of providing customers with choice,
value and security, Souq.com is often tagged as the“Amazon of
the Middle East”, Souq.com operates both as a retail site and as a
marketplace for third party sellers.
As part of Souq.com’s overall commitment to offering a convenient
and safe online shopping experience, the company has been
investing heavily in fulfillment centers in each of its markets to
further enhance the shopping experience as well as huge expansions
have been made in the customer service force to cater the growing
number of customers.
Souq.com and PayPal have partnered to offer a seamless payment
experience for all MENA consumers. As Souq.com offers many small
sellers the opportunity to sell on Souq.com, buyers can benefit from
PayPal’s Buyer Protection. PayPal and Souq.com will soon partner for
Souq.com’s development’s in KSA as well as other countries in the
MENA where PayPal and Souq.com can offer convenience, security,
and a great choice of products.
JadoPado is a unique instant gratification e-commerce experience for the Middle
East. The firm retails a wide range of consumer electronics and related products
while only selling what it holds in stock. JadoPado uses its own fleet of delivery
vans for deliveries within the UAE and partners with FedEx for International
Deliveries.
JadoPado has tried to build a better experience by creating a colorful and easy
to use site, an unmatched same day delivery offering with some great customer
support thrown in. JadoPado engages customers over multiple channels
including email, social media, live chat and real human interaction.
JadoPado and PayPal share the same endless search for customer satisfaction
and unrivaled service: JadoPado offers“JadoPado Shield”, which provides free
accidental protection on products sold by JadoPado, the first of its kind in the
region, while PayPal offers Buyer Protection, against products not delivered or
not as described.
JadoPado conducts research on e-commerce trends, which complements
PayPal’s constant search for insights in the region, as this report that you hold in
your hands shows.

Careem makes ground transportation
reliable, personal, safe and convenient.
Started by former management
consultants, Careem is a value-added
aggregator of chauffeur-driven cars in
the Middle East.
Careem’s customers can order a ride
online or through the Careem mobile
app, track their rides in real-time, pay
with PayPal or their credit cards, and
access receipts online.
The service is currently live in Dubai, Abu
Dhabi, Doha and Riyadh, and rapidly
expanding to other major cities of the
Middle East.
Careem has also signed up large
companies onto the platform, through
which all of a company’s staff or their
helpers can book rides seamlessly on the
web and through Careem’s mobile app.
PayPal is all about mobile optimization,
and about offering its customers a
fluid, easy, secure and homogenous
experience whatever the device,
whatever the country.
Careem and PayPal offer an easy and
secure experience for check-out or
recurring billing, whether you are in
Dubai, Doha, or Riyadh.
Mobily, the brand name of Etihad Etisalat,
was the Kingdom’s monopoly-breaking
mobile operator back in 2004. It is listed
in Tadawul Stock Exchange as it equates
to 40%+ market share of the current
mobile subscriptions in the Kingdom.
It has set new world records with
subscribers and daily data transmission.
Mobily provides a wide range of solutions
for both individuals and the business
sector. The move followed Mobily’s
aggressive thrusts into fixed-mobile
convergence, and into the mobile
broadband provision market, when
the leading Saudi 3G mobile operator
became the first operator in MENA to
commercially launch the 4G (TD-LTE)
services. Moreover, Mobily was one of
the first few companies in the world to
offer an unlimited data communication
packages, based on high-speed downlink
packet access (HSDPA) technology
offered to subscribers at competitive
rates and in a very creative way.
In 2012, Mobily’s social media initiative
won the ORACLE Innovation Award and
in 2011 Mobily won the Gold Award for
Saudization for two consecutive years.
As PayPal has a“Mobile First”approach,
enabling a full range of mobile services,
Mobile Network Operators (MNOs) are
the perfect partners. Mobily is the first
MNO in the Middle East to partner with
PayPal. This is an historic partnership:
Mobily consumers are now able to pay
safely and conveniently for different
mobile services. Mobily consumers can
now use PayPal to pay for their post-paid
or pre-paid bills. Furthermore, Mobily
consumers will be able to top-up their
Mobily phone minutes with PayPal, as
well as buy content on-demand from
Mobily website.
For as little as $11.99 per month, icflix
subscribers can watch unlimited Jazwood
(Arabic), Bollywood and Hollywood
movies and TV series, all in a single
package. Icflix is a new online streaming
video service that allows, through a
monthly subscription, to watch the latest
Hollywood, Bollywood and Arabic titles
including movies and TV shows as well
as children’s programming, via internet-
connected smart TVs, PCs, tablets and
smartphones. The icflix app is available for
free download on a growing number of iOS
and Android mobile devices.
Given that the Middle East region
consumes more online video content
than any other in the world, icflix was
created to satisfy that demand and to give
people the ultimate experience in online
entertainment.
icflix and PayPal offer icflix customers
a seamless experience on internet-
connected devices: from a tablet, a
smartphone, a computer or a smart TV,
icflix customers can browse the icflix
library, sign-up for a 7 day free trial and
pay using PayPal: the experience is always
optimized. This will allow a worldwide
PayPal audience, wherever they are
located, to finally legally stream exclusive
Jazwood and Bollywood content. For
PayPal users within the Middle East & North
Africa, they will have access to Hollywood
content.
icflix has the potential to appeal to the
same global audience as PayPal. Indeed,
the Middle East has a wealth of talent,
creativity and truly original content that it
can offer the rest of the world. PayPal helps
local companies promote their products,
services and content to the rest of the
world by reaching a global audience.

In a relatively short time, Qatar Airways has grown to over 120
destinations worldwide, offering unmatched levels of service
excellence that have helped the award-winning carrier to
become best in the world. Voted Airline of the Year 2011 and in
2012, as well as Best Business Class in the World 2013, the airline
has also been awarded the independent researcher’s 5-Star rating
easily demonstrating that Qatar Airways has won the confidence
of the travelling public.
In this highly competitive environment, Qatar Airways has
achieved much with a phenomenal route expansion averaging
30% growth year to year and flying one of the most modern fleet
of almost 120 aircraft in the skies today.
Qatar Airways’global network currently spans key business
and leisure destinations across Europe, Middle East, Africa, Asia
Pacific, North America and South America, with scheduled flights
operating to and from their hub in Doha, capital of the State of
Qatar.
Airlines represent the most popular category
for online purchases in the Middle East.
PayPal is already embraced by the world’s
leading airlines, across all continents. Many
airlines offer PayPal to their customers,
making paying for tickets easier and safer.
The Middle East being at the heart of
the spice and trade routes, airlines are
particularly important to connect the region
to the rest of the world, accelerate global
commerce and help e-commerce merchants
explore new territories. In the region, 3
airlines recently started offering PayPal to
their consumers
Airlines: the largest online category

PayPal has partnered with Qatar Airways to offer a seamless payment
experience, whether you are in Europe, North America, or Asia. Qatar
Airways has started offering PayPal on its Mobile App and optimized
mobile website in August. These new platforms now offer the same
level of security, convenience and global reach than the Qatar
Airways website, thanks to PayPal. PayPal users can buy Qatar Airways
tickets in 18 different currencies around the world, from hundreds of
countries.
Qatar Airways and PayPal have also partnered on innovative
marketing campaigns to offer their customers great promotions on
incredible destinations.
Royal Jordanian’s role as Jordan’s national carrier has long been
established, since 1963. Now under the guidance of His Majesty
King Abdullah II, Royal Jordanian has ascended from humble
beginnings with three aircraft and four regional destinations,
to become one of the elite members of a global alliance, a fleet
comprising more than 30 aircraft, and a destination network of
60 global stops. Not only has Royal Jordanian grown in size, its
reputation has been cemented in the public eye through its full
membership in oneworld since 2007.
Strategically located in Amman, Royal Jordanian’s central hub provides the ideal location through which Europe, Asia, Africa, and anywhere
in the Middle East can be easily reached. Royal Jordanian’s Amman City Terminal at 7th Circle provides a central locale for sales and early
boarding services. Royal Jordanian is proud to fly in and out of its main airport, Queen Alia International Airport (QAIA), conveniently
situated just outside the city.
Since May 2013, travelers booking on the Royal Jordanian website can now benefit from added convenience and security, paying through
PayPal. All RJ customers flying to and from Jordan can opt to buy tickets online by using PayPal for payment. This service covers RJ
customers purchasing their tickets in the Middle East, North Africa, Europe, Asia and North America. This partnership offers Royal Jordanian
customers the best ticket experience ever, by offering them yet more payments options. PayPal buyers can buy Royal Jordanian tickets in
10 different currencies around the world, from hundreds of countries.
Etihad Airways, the national airline of the United Arab Emirates
made its first commercial flight in November 2003.
Since then, the Abu Dhabi-based airline has grown faster than any
other in commercial aviation history, offering its award-winning
services to 94 destinations in Africa, Asia, Australia, Europe, the
Middle East and the Americas on an environmentally friendly fleet
of 80 aircraft.
More than 16,000 employees from 138 nationalities offer the
highest standards of service and comfort both on the ground and
in the air. Customers can enjoy world-class cuisine, flat-beds and
suites in its premium cabins and the widest seats in economy, as
well as inflight wi-fi connectivity and more than 600 hours of on-
demand in-flight entertainment.
As recently as August 2013, Etihad added PayPal to its website to allow Etihad consumers to pay safely and conveniently.
Starting with the United Kingdom and soon expanding to most of the world, travelers using Etihad’s website are able to buy tickets
online by using PayPal for payment. This new partnership offers Eithad Airways customers the best ticket experience ever, by offering
them yet more payments options.

Welcome shoppers who prefer using PayPal
132 million PayPal customers worldwide love the
convenience and security of PayPal, where they can pay
from their PayPal balance, debit or credit card, or bank
account in some countries. The PayPal logo reassures
buyers who may be unfamiliar with a website and
customers check out in three easy clicks so more of them
complete the sale.
Easily integrate PayPal with your checkout
Express Checkout is made to work with many leading
shopping carts and payment gateways so it’s easy to
add to a website’s existing checkout. Once a merchant
has opened his/her PayPal Business account, it is easy to
follow the cart provider’s instructions to enable PayPal in
the website’s checkout.
PayPal Express Checkout
PayPal Express Checkout Solutions
& Log In with PayPal
PayPal is the easier, faster and safer way to pay and get paid online. Sellers don’t have to wait to get paid as
payments appear in their PayPal account within seconds. As a trusted global leader in online payments, PayPal
has secured transactions for over 15 years. Our most popular payment solution in the Middle East is the PayPal
Express Checkout product, which allows merchants to receive money from our 132 million global users.
We also offer PayPal Mobile Express Checkout, as already 10% of all transactions in 2012 came from mobile,
and PayPal believes that in 2015 50% of all e-commerce transactions will be mobile transactions.
PayPal Mobile Express Checkout
Mobile Express Checkout (MEC) is a PayPal product solution that allows
online retailers to optimize their checkout experience for mobile devices.
With PayPal’s MEC, customers do not have to re-enter shipping, billing,
or payment information to buy with PayPal. Data entry is minimized and
the complete transactional experience is optimized and simplified for the
small screen. Customers just need to log-in to their PayPal account, confirm
payment and the transaction is complete.
MEC is designed to help businesses increase sales and conversion rates via
mobile platforms. For existing PayPal merchants, MEC leverages existing
Express Checkout implementation so they can take advantage of the mobile
checkout experience with only minimal programming changes.
PayPal supports several implementations of Mobile Express Checkout.
Businesses can provide a complete mobile website, or they can create a
mobile phone app in which the checkout button is integrated into the app
itself.

Log In with PayPal
Log In with PayPal is a solution that enables a merchant’s customers
to sign in to a merchant’s website quickly and securely using their
PayPal login credentials.
Merchants do not have to worry about the cost and hassle of
storing user data on their system.
It can help merchants grow their member base since it will
reduce friction during account set-up. Log In with PayPal will let
customers import their PayPal data onto the merchant’s website.
Log In with PayPal also offers a seamless checkout feature. This
feature gives customers who are already logged in with PayPal a
choice to checkout without the need to log into PayPal again.
Benefits of PayPal Checkout
Products
Security: Customers never input or share financial details with
sellers
Usability: A seamless customer experience, no cumbersome data
entry
Integration: Quick deployment and integration
Easy payment: Payment can be made in just two clicks
Strong fraud detection: Constant controls and risk profiling.

PayPal Pte Limited, a Singaporean company (“PayPal”) is not liable for, and does not take any responsibility for, the contents of
this report that are produced by third parties or for any reliance placed by any third party on this report. This does not apply to
the content provided by PayPal. This report has not taken into account your objectives, situation or needs and you should contact
PayPal to obtain further information about the PayPal service before relying on this report.

Brought to you by
www.paypal.com/ae

PayPal Insights: E-commerce in the Middle East

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