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), a statement from MasterCard said.
Consumers are also shopping in more and more different ways, such as through a voice assistant and social media applications, the same source said, noting that the adoption of a wider range of methods, digital payment systems are accelerating. in Morocco and the technology that powers the future of payments is “already here”.
In addition to learning about solutions such as digital cards, biometric payments, BNPL and open banking, Moroccan consumers are increasingly actively using these solutions in their daily life.
The use of digital payments increases, the use of cash decreases
Although 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 main concern when choosing payment methods, globally and in Morocco (46%). In this country, security is followed by ease of use and rewards.
Pointing out 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 the wider adoption of new digital payment methods,” said Mohamed Benomar, managing director, MENA West, MasterCard.
“Mastercard’s New Payments Index helps to take the pulse of growing consumer confidence in the secure digital economy, and as Morocco’s cashless economy grows, so does the prosperity of people, businesses and the entire ecosystem.” he added, quoted in the statement.
The new Mastercard Payments Index 2022 also shows a strong awareness of BNPL payments as a budgeting tool.
Most Moroccan consumers have heard of BNPL: 74% of them say they know the concept and more than a third (39%) already feel comfortable using it today. Consumers want the flexibility and convenience of BNPL, but with the sense of security that comes from a reputable provider such as a bank or payment network.
Those who have used BNPL find it useful for emergencies and large purchases, as well as to increase their purchasing power. Consumers also find BNPL useful for unique use cases, including as a budgeting and financial planning tool.
Responsiveness to direct payments from account to account (A2A)
Most consumers are looking for more flexibility to optimize their bill payment, prioritizing control, flexibility, convenience and integrated payment technologies. Most consumers are open to account-to-account direct payment options by linking their account to a merchant site for future purchases. 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 the payment date of their monthly bills, mainly due to irregular income. Also interesting are the bill payment options that allow them to pay over a period of time using a “buy now, pay later” solution (61%) and automatic payments for household bills (61%).
Consumers are turning to fintechs and indirectly to open banking to meet their daily financial needs.
Consumers rely on digital financing options for their daily financial activities, with the benefits of open banking or “open banking” such as speed, convenience and transparency. About two-thirds (66%) of them are familiar with open banking and use it to pay bills, do 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.
Biometrics offer convenience and security at the checkout, but access to data remains problematic
Consumers recognize the convenience that biometrics can offer, with more than half (53%) recognizing that it is easier to make payments using biometrics than with a card or device. The potential for greater security is also evident for consumers, with more than half recognizing that biometric technology for payments is more secure than two-factor authentication.
While consumers have some doubts about which entities have access to their biometric data, they are still willing to use it due to the time savings it allows and more than half (52%) have used biometrics for at least one purchase per year. last .
Three in four consumers (75%) have used or intend to use their fingerprints to make a payment, followed by other biometric methods such as facial recognition, palm payment and retinal scanning.
Emerging payments are on the rise with generations of digital natives.
Younger generations have become more digital in their buying and paying behaviors, and their engagement and use of emerging digital payments is accelerating faster than that of the older audience. While data security and privacy remain a concern for them, it is less of a concern than older audiences and they are more likely to perceive digital tools as safe.
In Morocco, Generation Z are less likely than Millennials or Generation X to use cash or make purchases and payments in person. They are proactively looking for new payment methods and it is likely that around a third of Gen Z and Millennials have gotten a new digital payment alternative (e.g. digital wallet, click-to-pay).
As consumers shop, bank and transact digitally more than ever, Mastercard continues to develop its digital payment capabilities in Morocco and the wider EEMEA region, the statement said.
Its reliable technology solutions are being used for new use cases, brought to market through various partnerships with fintechs, governments, financial institutions, digital giants and telecom operators.
“By leveraging multi-rail capabilities to create competitive localized solutions, Mastercard is accelerating the transfer of value in new, multi-track ways, promoting a bright future for inclusive commerce,” the statement concluded.