Mastercard: 75% of Moroccans use at least one emerging payment method - Le Desk

Mastercard: 75% of Moroccans use at least one emerging payment method – Le Desk

Credit: DR

Mastercard’s new 2022 Payments Index revealed that 75% of Moroccan consumers have used at least one emerging payment method in the past year.

These include 24% who used a digital money transfer app, 20% who used a smartphone mobile wallet for contactless payments, and 10% who used a BNPL installment plan ( Buy Now Pay Later – Buy Now, Pay Later), said a statement from Mastercard.

Consumers are also making purchases in increasingly diverse ways, for example through a voice assistant and social media applications, the same source said, noting that the adoption of a wider range of methods payment methods is accelerating in Morocco.

The use of digital payments is increasing, that of cash is decreasing. While traditional payment methods are still popular, one in ten Moroccan consumers (11%) said they used less cash in the past year.

In contrast, more than half (53%) of Moroccan consumers increased their use of at least one digital payment method last year, including digital cards, SMS payments, digital money transfer apps and instant payment services.

These behaviors are expected to continue, with comfort and safety being the keys to growing adoption. The Index confirmed that security is the top concern when choosing payment methods, globally and in Morocco (46%).

Highlighting that sustainability is a key factor in the region, 30% of Moroccan consumers said they also consider social and environmental benefits.

“As Moroccan consumers realize the benefits, speed and convenience of new technologies, we will also see wider adoption of new digital payment methods”said Mohamed Benomar, Managing Director, MENA West at Mastercard.

“Mastercard’s new payments index helps take the pulse of growing consumer confidence in the secure digital economy, and as Morocco’s cashless economy grows, the prosperity of people, businesses and the whole ecosystem also grows”he added, quoted in the press release.

This new index also shows strong awareness of BNPL payouts as a budgeting tool. The majority of Moroccan consumers have heard of BNPL: 74% of them say they know the concept, and more than a third (39%) are already comfortable using it today.

Consumers want the flexibility and convenience of BNPL, but with the sense of security that comes with a trusted provider like a bank or payment network. Those who have used the BNPL find it useful for emergencies and large purchases, as well as to boost their purchasing power.

The majority of consumers are looking for greater flexibility to optimize bill payment, prioritizing control, flexibility, convenience and integrated payment technologies. 76% of Moroccan consumers using account-to-account payments maintained or increased their use last year.

Two-thirds (64%) of consumers agree that they are interested in a bill payment option that allows them to change their monthly bill payment date, primarily due to irregular income.

Bill payment options that allow them to pay over a period of time using a “buy now, pay later” solution (61%) are also attractive, as well as automatic payments for household bills (61%).

Consumers rely on digital financing options for their daily financial tasks, with the benefits of open banking such as speed, convenience and transparency. About two-thirds (66%) of them know about open banking and use it to pay their bills, do their banking, obtain or refinance loans and make BNPL payments.

According to Mastercard, more than half (51%) of Moroccan consumers feel safe using apps to send money to people or businesses from their phone.

Consumers recognize the convenience that biometrics can provide, with more than half (53%) acknowledging that it is easier to make payments using biometrics than with a card or device. The potential for increased security is also evident to consumers, with more than half agreeing that biometric technology for payments is more secure than two-factor authentication.

Although consumers have some concerns about which entities have access to their biometric data, they are still willing to use it due to time savings, and more than half (52%) have used biometrics for at least one purchase Last year.

Three in four consumers (75%) have used or plan to use their fingerprints to make a payment, followed by other biometric methods such as facial recognition, palm payment and retina scanning .

Younger generations have become more digital in their buying and payment behavior, and their engagement and use of emerging digital payments is accelerating faster than that of older audiences. While data security and privacy remain a concern for them, it is less than for older audiences, and they are more likely to perceive digital tools as safe.

In Morocco, Gen Z is less likely than Millennials or Gen X to use cash or make in-person purchases and payments. They are proactively looking for new payment methods, and around a third of Gen Zers and Millennials are likely to have obtained a new digital payment alternative (digital wallet, click-to-pay account).

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