As more and more crypto Web3 marketers turn their attention to the Middle East and North Africa (MENA) areas, the fintech industry is undergoing a fascinating transition.
This tactic is not chosen at random. It is supported by three crucial elements: the rise of digital payments, the development of the crypto infrastructure, and the new significance of Central Bank Digital Currencies (CBDCs). This change represents many opportunities for Web3 marketers in a setting primed for ground-breaking solutions.
The rise of digital payments
In today’s digital world, it’s impossible to deny that more and more people are choosing to handle their financial matters online. The evolution has been greatly accelerated by the COVID-19 pandemic. It accelerated the trend toward conducting business online and in digital formats worldwide.
New and old businesses are quickly changing to satisfy this demand. The result was a shift in emphasis away from brick-and-mortar stores and toward online buying and selling.
Value of Cashless Transactions Worldwide. Source Statista
This change in consumer habits is striking in the Middle East and North Africa (MENA). The speed at which cash payments are being phased out, from 26% in 2019 to 16% in 2022, indicates the rising popularity of digital payment methods.
In addition, the popularity of “super-apps” suggests that users prefer all-encompassing digital environments. Like WeChat and Alipay in Asia, these are emulating the methods of success in the region.
Web3 marketers can use these shifting patterns of interaction to test out new approaches to attracting and retaining customers. The growth of e-commerce and the popularity of alternative payment methods open the door to targeted advertising, the creation of new products, and the provision of specialized services.
The potential impact of crypto
As crypto enters the mainstream financial discourse, its function is shifting from only an investment asset to a payment solution that can be used in everyday life.
A staggering increase of 48% compared to the previous year, MENA-based users obtained a total of $566 billion worth of crypto between July 2021 and June 2022.
The flourishing cryptographic infrastructure offers many opportunities for Web3 marketers to gain in various ways. The introduction of cryptos into existing payment methods is a revolutionary step. It makes transactions simpler, quicker, and more secure, thereby lowering the possibility of fraud and allowing users to carry out their business with complete self-assurance.
These qualities are especially important for those living in areas with less developed financial infrastructure than other locations. Consequently, making previously inaccessible forms of financial assistance available to consumers.
In addition, the proliferation of applications for decentralized finance (DeFi) creates brand-new openings for business. It enables advertisers to access a rapidly increasing market filled with users looking for novel financial services such as peer-to-peer lending and trading in digital assets.
These platforms have the ability to bring better financial inclusion, which is a vital aspect for places such as the Middle East and North Africa (MENA), where a considerable section of the population is still unbanked.
The CBDC aspect of It
A potential revolution in digital banking is being explored by 86% of the world’s central banks in the form of Central Bank Digital Currencies (CBDCs). This historic change signals the end of paper currency and the beginning of digital currency.
It’s an intermediary between fiat currency and digital assets issued and governed by governments.
The United Arab Emirates (UAE), Saudi Arabia, and Iran are just a few of the MENA countries making great strides in CBDC pilot programs. This highlights a significant shift in the acceptance and normalization of digital currencies, which may affect the future of monetary activities in the region.
Marketers in the Web3 space can profit from this change. If CBDCs become more widely used, it will pave the way for the widespread distribution of blockchain-based goods and services.
In addition, it would increase the audience size that marketers can target and convert, thanks to their familiarity with digital assets.
The clarity in Regulations Changes Everything
The race between the crypto market’s rapid innovation and regulatory agencies has been laid bare. However, many MENA countries are taking aggressive moves to develop legislation for crypto transactions despite the uncertain landscape.
Web3 marketers would benefit greatly from more transparent regulatory regimes. Web3 marketing strategies and goods can be developed with greater confidence inside a codified regulatory framework if the playing field is made clear. Also, it facilitates trust, which is critical to the financial industry’s openness to new technologies.
Many factors, including forward-thinking consumer habits, advancing crypto infrastructure, the arrival of CBDCs, and the possibility of legislative clarification, are driving crypto Web3 marketers to shift their focus to the MENA area.
Web3 marketers are in a location ripe with possibilities, ones that could soon be propelling the next global financial boom wave.