The Role of Payment Gateways in Middle East E-Commerce Expansion

UAE’s ecommerce market is poised to generate sales worth USD 8 billion by 2025, as per the Dubai Chamber of Commerce and Industry. With almost 100% of the country’s population enjoying access to mobile phones and internet, the possibility of reaching this staggering figure hardly comes as a surprise. Online payment solutions are especially fueling this expansion of the ecommerce landscape, as more and more people are realizing the advantages of going cashless and embracing quick and efficient virtual transactions. As far as popular regional payment trends are concerned, mobile or digital wallets have emerged as a favorite among the Gen Z population. Many customers are also warming up to the buy now pay later model. Cards and bank transfer continue to be common modes of digital payment as well.

So, how are Middle East’s payment gateways revolutionizing life for both consumers and merchants? What is their role in the region’s ecommerce boom? Let’s find out.

Reasons Why Payment Gateways are Driving Ecommerce Success

A payment gateway is essentially a technology that merchants can use to accept online payments from customers. It collects the customer’s payment information and sends the same to the merchant’s acquiring bank for processing. The top Middle East ecommerce payment gateways like PayTabs ensure the security of sensitive data while facilitating smooth transactions and improving the customer experience.

The many benefits of such gateways are detailed here:

• Safety

Security is of paramount importance for any online business, and the right payment gateway comes with all the latest measures to protect customer and financial data against frauds and scams. These measures are updated periodically as well to resist new threats. Leading gateways comply with PCI DSS standards for starters. This instils trust and confidence in shoppers and encourages them to make repeat purchases.

• Checkout Simplicity

The best online payment gateways offer customers a glitch-free and fast checkout experience, which means fewer instances of cart abandonment. Every payment request is routed in the most optimal manner to minimize the chances of failure or non-acceptance. This translates to more sales and revenue. Some payment gateway providers might also allow you to personalize the checkout experience based on the nature of your business, target audience, average transaction volume and value, etc.

• Multiple Payment Options

Digital payment platforms like PayTabs enable merchants to offer a variety of payment modes to customers. This means greater flexibility and the freedom of choice. Shoppers don’t have to abandon their carts at the last moment just because they can’t find their preferred payment option. This improves overall satisfaction and also enhances your brand’s image.

• Multi-currency Support

Aided by the right payment gateway, merchants in the Middle East can grow their presence beyond geographical boundaries. Such gateways allow you to accept multiple currencies and take away the hassle of handling exchange rates as well. This helps you to expand your customer base since people in other countries enjoy the flexibility of paying in their local currencies. You end up boosting their shopping experience and win their trust. However, the payments received are converted into your base currency, for your convenience.

• Scalability

The best Middle East payment gateways can scale in line with your business. This means, they are designed to handle varying requirements when there is a change in website traffic or transaction volume. For instance, during festivals or in the beginning of a month, you might witness more demand. Having a gateway that can tackle the extra workload efficiently is a necessity in that case. Moreover, if you wish to foray into new geographies or markets, such gateways can make the expansion easy by complying with local regulations.

• Easy Integration

A big reason why online payment gateways are driving ecommerce growth in the Middle East is because they are easy to integrate with both websites and applications. The merchant onboarding process is simple and there is no need for you to have technical knowledge to get started. Plus, demo and training sessions are offered to kick-start your payment system and familiarize your team with how everything works.

• Smart Analytics

Payment gateway providers in the Middle East realize the importance of data when it comes to decision-making. Hence, they offer cutting-edge dashboards, tools, and report generation options, so that you can obtain useful insights into consumer behavior as a merchant. In-depth data analysis allows you to spot gaps or shortcomings as well as areas that are doing well. You can take informed decisions that are not just based on assumptions or conjectures, thereby improving the customer’s experience further.

• Cost-effectiveness

The competitive pricing structure offered by payment gateway providers in the Middle East is yet another reason why merchants are adopting the same in droves. Usually, you might have to pay a fixed fee or a percentage based on the transaction volume. Since top providers offer customized solutions, you are likely to zero in on a price model that aligns with your business’s current financial state, future growth potential, and budget.
Also Read: How to Fight Ecommerce Fraud with Payment Orchestration

Payment Gateways are the Future of Ecommerce

The popularity of online payment solutions is only expected to grow in the near future in the Middle East. The convenience of shopping from anywhere, with practically any mode of payment, and any currency, will draw more consumers, even from previously-untapped demographics. The safety, speed, and efficiency of payment gateways like PayTabs will boost growth across multiple ecommerce sectors dealing with products as well services. Constant advancements in technology will help merchants to drive more conversions and improve customer loyalty, for a significantly strengthened bottom line.