PayPal announced the launch of its Middle East operations with the news that it has signed an agreement with Aramex, the global logistics and transportation solutions provider, to support its Shop & Ship service, helping to make overseas transactions easier for Middle East consumers.
PayPal’s Middle East operations will be led by Elias Ghanem, Managing Director of PayPal Middle East and North Africa, who commented on the launch, “PayPal has big ambitions to help millions of internet users to shop conveniently and safely online within the MENA region and across the world and to help thousands of merchants in the region take their business online or grow their existing online business by inviting our 117 million active PayPal consumers to transact with MENA merchants.”
“PayPal offers a safe and secure way to shop online. This deal with Aramex allows MENA consumers to shop abroad for their preferred brands, and have their purchases delivered to their door steps in a simple and more straightforward way.” Shop & Ship is a creative and convenient way for online shopping outside of the US, UK and China, serving consumers based in the Middle East and North Africa.
“E-commerce in the Middle East has developed at a phenomenal rate over the past few years, and PayPal’s strategic entry into the region is a clear indication of the boundless potential for the industry in the future. We are extremely pleased to partner with PayPal and offer our customers the convenience of using PayPal’s efficient payment system, supported by a legacy of trust across the world,” said Hassan Mikail, Head of e-Commerce Services at Aramex.
According to Wamda.com, an enabling platform for entrepreneurs, e-commerce presents one of the largest opportunites in the region for small businesses. Only 15% of Middle East businesses have an online presence* and online B2C e-commerce sales in the region will reach an estimated $15 billion by 2015.
With 66% of consumers in MENA using the internet to search for products and services*** and only one third of them making online purchases, the offline to online opportunity is significant. “Mobile and online commerce is very popular in North America and Europe, but it is still in its infancy in the Middle East” added Elias.
“However, mobile technology is hugely popular and people are gaining confidence in online retailing here, through exposure to daily deals, private sales, airlines websites etc… We see this trend happening in MENA with merchants like Souq.com, Cobone, Sukar, MarkaVIP, Namshi and Emirates Airlines who already accept PayPal”
PayPal has recently added four new markets – Saudi Arabia, Jordan, Bahrain and Oman – to the currently enabled ones – UAE, Qatar and Kuwait – which makes a total of seven markets where merchants can now receive their funds locally. The launch of PayPal in the Middle East will also herald new customer service opening times for consumers in the region, with business hours set according to UAE time. The customer service will now be open 7 days a week from 9am to 7pm.
