Payment approval rates for travel have increased by 8.8 per cent in the Middle East and North Africa (Mena), finds a new report from Checkout.com, the leading international provider of online payment solutions.
In the fourth quarter of 2018, the approval rate rose by 5.1 per cent, bringing Mena’s rate just 3 per cent behind the rest of the world. Due to the high transaction value in the travel industry, card approval rates have seen a slower growth rate than other industries, such as e-commerce. The 2019 Online Payments in the Travel Industry MENA report connects the rise in approved travel payments to the greater availability of lower cost trips from Saudi Arabia, where the ticket prices have reduced by 7.4 per cent between 2017 and 2018, and the rise of use of Mada online cards also contributed to the approval rate. In Saudi Arabia, roughly one-third (37 per cent) of bookings made within a week of travel were purchased through a desktop computer, while 58 per cent were made with a mobile device. Across the Mena region, mobile bookings are less common. Approximately 31 per cent of bookings made within a week of travel are purchased on a desktop computer and 36 per cent are made via mobile device. Compared to the rest of the world, Checkout observed Mena travel merchants process 21 per cent more payments through 3D Secure and charged back 0.04 per cent less payments.