Omnichannel seems to be “outdated” in a rapidly changing world

In January 2020 the share of contactless transactions in the UAE was 1%. Today it is 95%. Around 65% consumers start their transactions on their mobile phones but complete it on a different device/platform. And 75% believe NFTs and cryptocurrencies can be the future of money.

In addition, due to flexibility of “working from home” or “working from anywhere” structured shopping patterns are also changing. Globally, 5% of weekend spending behaviour at department stores has moved to weekdays.

What’s becoming more and more clear is that omnichannel seems to be “outdated” as consumers seek to interact with brands differently, stated Mete Guney, Executive Vice President – Eastern Europe, Middle East and Africa, Mastercard Data & Services during a session at the Middle East Retail Forum 2022.

Watch the full video here.

“In a retail world that’s witnessing rapid digitalisation with the pandemic further accelerating this shift, the industry is facing a new world and a new consumer where only 25% are expecting to earn and burn loyalty solution,” Guney added. “The rest is expecting personalisation, they want to be recognised.”

And to deliver a delightful experience to the new-age consumers meaningful collaboration between retailers, payment solutions providers, technology companies are crucial.

Interestingly, service based online small businesses are winning three times more than the large retailers. For perspective, online spending at small services businesses grew 59% between August 2019 and August 2022, above large services at 34% over the same period. However, large retailers outperformed small ones in the shift to digital, with e-commerce growing 66% versus 27% when comparing August 2022 and August 2019.