Security as a Strategy

Accelerated eCommerce in CEMEA

SSA is one of the newer regions in the eCommerce landscape, that is changing, led by markets such as South Africa, Nigeria and Kenya. A survey by Visa found 59% to 81% of consumers in these three countries had attempted online shopping for the first time for groceries, pharmaceuticals or food delivery services² and, crucially, consumer spending on digital channels in SSA remained elevated even once governments lifted restrictions – emerging as 1.8 times higher as a share of total consumer spending in the post-lockdown period³. Macroeconomic and demographic fundamentals, such as a projected near-term rise in household incomes as well as greater technological adoption and young, growing populations, are set to support continued eCommerce growth across SSA.

Meanwhile, in the Middle East and North Africa (MENA) region, digital payments are forecasted to see a compound annual growth rate of 6.5% between 2020 and 2025⁴. In the United Arab Emirates (UAE), online shopping transactions have almost doubled, while over 60% of consumers report high levels of confidence in them⁵.

This rapid change has brought benefits – but also new threats to the payments ecosystem. Addressing this is a growing priority for the region’s governments, from the launch of the UAE’s National Cybersecurity Strategy 2019⁶; to the establishment of the National Cybersecurity Authority in the Kingdom of Saudi Arabia (KSA) in 2017⁷; to Kuwait’s current National Cybersecurity Strategy to promote safe cyberspace usage⁸.

In SSA, where Interpol recently flagged “the need for a change in the approach to cybercrime within Africa as a region that is embracing digital transformation”⁹ the Central Bank of Kenya’s National Payments Strategy 2022-2025 to achieve a secure and collaborative payments system, flags that “ensuring that existing and new users are adequately protected will be a core focus … recognizing that threats keep shifting constantly”¹⁰.

In tandem, Visa’s commitment to security – seven cents for every $100 transacted on its network – has kept fraud at historic lows, while maintaining “always-on” network reliability¹¹. Across Visa’s network in CEMEA, issuing card-not-present (CNP) fraud rate fell 24% last year compared to 2020¹². Visa believes security is a collective effort and continues to work with its partners and other stakeholders in the payments ecosystem as a strong proponent of consumer education.

Insights from the MENA region

Complementing the targeted activity in markets such as Kenya and the UAE, Visa’s annual Stay Secure campaign will launch in June for its seventh year to promote safe digital payments habits across the UAE, KSA, Kuwait, Egypt, Morocco, and Pakistan and with the addition of Qatar this year. In line with its collaborative approach, Visa is partnering with government and industry stakeholders – including, software company HPS in Morocco, the Kuwait Banking Association, Dubai Department of Economy and Tourism Development and Dubai Police in the UAE.

As in previous years, the 2022 Stay Secure campaign involves listening to the Voice of the Consumer through surveys to obtain the latest insights. “What’s different this year,” explains Charles Lobo, Senior Vice President and Regional Risk Officer for CEMEA, “is the survey looks at consumer attitudes towards emerging payment trends like buy-now-pay-later (BNPL) and Digital Currencies. Every year, we update our social media assets based on the latest learnings, to ensure we are creating and providing content that is not only informative but also engaging.” In the process, the campaign empowers consumers as the ‘first line of defense’ against fraud. This in turn raises consumer awareness and confidence whenever and wherever they use their Visa credentials to pay.

As Lobo says: “It is critical that Visa and industry partners continue to educate consumers, so that they can confidently use digital payments and reap the benefits it brings to themselves, businesses, communities and economies across the globe.”