A recent Deloitte report shows that the e-commerce market size in the Middle East is around 39 billion USD and is expected to grow to 50 billion USD by 2025. And it doesn’t come as a surprise.

In the last few years, and especially in the wake of the pandemic, consumers have started to increasingly realize the many benefits of ordering both essentials and luxury items online. It helps them explore collections from multiple sellers, pay securely, and receive products within a certain timeline without stepping outside. Recently, the option of installment payments being offered by top e-commerce players is further improving the customer experience and driving conversions and sales.

Installment payments in e-commerce provide customers with more flexibility and boost overall satisfaction. This form of payment allows customers to buy anything they want, even premium items they usually wouldn’t consider, by deferring the billing or spreading out the payment over 4 or more installments.

As an online merchant, you can use an efficient gateway like PayTabs to offer buyers this solution during checkout. While you will receive the payment in full, customers can decide when and how to pay. Now, let’s see which sectors e-commerce benefit most from installment payments.

Installment Payments Benefitting These 5 E-Commerce Sectors

These 5 e-commerce industries are leading the way in embracing installment payments to ease the shopping experience for customers and attract more of them:

1. Fashion and Apparel: Major brands such as Namshi, Calvin Klein, H&M, SHEIN, Tommy Hilfiger, and Lululemon have started offering installment payment solutions so that customers can shop for exclusive pieces and limited edition products that are usually priced high. This has also helped draw young millennials and Gen Z buyers, helping them overcome income limitations while staying fashionable and in vogue. It has also made gifting easy, particularly on special occasions or festive events.
2. Beauty and Cosmetics: Top-quality makeup products can easily burn a big hole in any fashion-conscious woman’s wallet. But not anymore, with installment payments in e-commerce, as well-known names such as Sephora, Ulta Beauty, and Stila have already embraced the same. This enables customers of all ages to shop for their preferred items, including expensive face treatments, perfumes, lipsticks, and foundations, while keeping an eye on their budget for everything else.
3. Electronics and Appliances: This is undoubtedly one of the top sectors that have benefitted from introducing installment payments in e-commerce transactions. Names such as LG and Samsung have already joined the bandwagon, making buying big-ticket items such as air conditioners, refrigerators, washing machines, and televisions hassle-free.
   Many hypermarkets in the Middle East, selling top-end laptops and iPhones, have also started offering the installment payment option so that customers can get their latest gadget fixation satisfied. Even those who have just started earning or students who solely depend on pocket money can now get their hands on snazzy items.
4. Household Items and Furniture: Brands like IKEA and Bed Bath & Beyond are making their products more accessible and affordable for all, including new homeowners, tenants with modest incomes, young families, and single individuals, through installment payments. They are making it possible to own antique sofas, stylish dining tables, big wardrobes, and premium-quality linen without breaking a sweat or the bank. Buying lawn chairs, cushions, storage racks, and décor accents is also possible without paying for it all in one go.
   Given that the Middle East sees a decent influx of expatriates from countries near and far, including those on short work contracts, installment payments make life easy for many. And this is bringing the sector more customers.
5. Entertainment: Gaming is a massive passion and a way to pass the time all around the world, and it is no different in the Middle East. However, video games, consoles, systems, collectibles, associated electronics, and accessories can noticeably pinch the customer’s pocket. With installment payments, though, it is now possible for avid gamers to own their favorites without resorting to despair or loans. The e-commerce gaming industry, with brands like GameStop, is allowing players to keep playing while paying affordably over time.

Reasons Why Top E-Commerce Sectors are Offering Installment Payments

Apart from increasing e-store traffic and driving conversions, installment payments in e-commerce are proving to be helpful in different ways:

• Instilling Trust: Motivating newly-acquired customers to make a purchase is not always easy, especially if they are unfamiliar with a brand or new to online shopping. In such a scenario, offering to pay in installments can nudge them to buy something as they don’t have to invest in it in one go. Leading e-commerce industries realize that and are capitalizing on this smart payment mode.
• Reducing Instances of Cart Abandonment: Often, even after adding items to their cart, customers tend to abandon it right before checkout. They either feel they cannot afford the total billing amount or are not too confident about paying the entire amount upfront without being sure about the product’s quality or efficacy. However, e-commerce sectors offering installment payments address this concern intelligently, as paying one-fourth of the bill, for instance, doesn’t seem too intimidating for most buyers.
• Encouraging More Spending: By allowing customers to pay in manageable installments, leading e-commerce sectors gently lead them to consider buying more items than they intend to. That is because even if a shopper adds a couple of extra products to the cart, the total amount, when spread over 4 or more installments, seems pocket-friendly. However, the seller gets to boost their overall revenue.
• Building Loyalty and Retention: Customers keep returning to sellers who offer them flexibility and freedom in terms of payment. And that is why top e-commerce sectors are using installment payments to fuel their growth, widen the consumer base, and improve loyalty. As this payment format ensures more transparency between the seller and buyer, it helps nurture their long-term relationship.

Conclusion

Now that you know how installment payments in e-commerce are aiding top industries to benefit in more ways than one, it is time to consider the same for your business. In a world of economic uncertainty, offering customers the scope to fulfil their needs without inviting financial worries can be a wise move.

Plus, you can stay competitive in a dynamic e-commerce landscape. A smart and reliable payment gateway like PayTabs can help you get started. Just assess your needs carefully and understand your customer personas before choosing a gateway that fits your budget.

FAQs

Q1. How can my e-commerce business benefit from offering installment payment options to customers?

You can attract more customers, win their trust, make purchases more affordable, offer more payment flexibility, and drive them to spend more. Offering installment payments will also boost your brand value and improve customer retention and loyalty in the long run.

Q2. Are there any specific industries or product categories where installment payments are more advantageous for e-commerce businesses?

While fashion, beauty, electronics, entertainment, and household items are the sectors that have benefitted immensely from introducing installment payment options, any e-commerce business can gain a competitive edge through the same. You just need to pick a payment gateway that is secure, efficient, easy to integrate with your website, and offers customization and holistic support.

For businesses, increasing sales is an ever-present requirement. While they might offer deals and discounts, only some are capable of paying for something in its entirety. One way to win the hearts of customers and boost sales numbers is by providing installment payments. In other words, businesses can offer customers the option of paying for a product through a series of bite-sized payments spread across a few months or years.

Let’s explore the nuances of maximizing sales potential by introducing the installment payment system and how it can be a game-changer for various business sectors.

Business Areas Where Installment Payments Shine

Goods

Be it a sleek new gadget or a trendy wardrobe upgrade, tangible goods are a great platform for offering installment payments to the customer. The number of e-commerce and online shoppers is increasing every day, and with the help of spread-out payments, customers can now buy high-ticket items with reduced financial strain.

Services

Signing up for year-long gym membership through monthly installments is more manageable than paying to use the gym every month. Several service-based businesses, like consultancy services, magazine subscriptions, or streaming platforms, benefit from distributing their subscription fee to smaller chunks of manageable payments.

How Installment Payments can be a Game Changer in Increasing Sales

Reduce Cart Abandonment Rates

Imagine a customer liking a product on your website but not going through with the payment due to the substantial price tag. As per a survey, nearly 70% of shopping carts are abandoned before checkout. While customers might be interested in the product, they need more time to be ready and capable of handling the financial strain.

Installment payments can break down this barrier and allow customers to pay in smaller, more manageable chunks. This transforms that intimidating price tag into a series of approachable payments. With the financial commitment spread over time, customers are more likely to go through with the payment as the initial cost isn’t so high.

Expanding Customer Base

While the marketing team can provide hundreds of leads, only some have the financial ability to make big-money purchases in one go. You can make your products or services available to a broader pool of leads by offering different payment terms and installment options.

Inclusivity is a powerful magnet for customers. Everyone has a different financial situation, and the availability of installment payments creates a positive perception of your business. It lets the customers know you understand and cater to their varied needs. This inclusivity doesn’t just increase your customer base; it also fosters a sense of loyalty among those who might not have considered your business otherwise.

Increases Average Transaction Value

Installment payment system not only attracts new customers but can also significantly impact the average transaction value. When customers see how affordable the monthly installment is, it creates a sense of financial comfort and encourages them to add complementary items to the cart.

Increased average transaction value not only boosts immediate revenue but also contributes to a healthier bottom line. It’s a win-win situation for both you and the customers. They get the flexibility they desire, and you see an uptick in sales volume and value.

Builds Trust and Long-term Relationship

By allowing your customers to pay in installments, you demonstrate commitment to the customer’s well-being. The increased trust in the customers and the positive experience can turn first-time buyers into repeat clientele. This trust-building aspect is crucial for establishing long-term relationships with customers.

As customers complete their payments smoothly, they develop more confidence in your business and your offerings. They become more inclined to buy products from your website and also recommend them to their friends and family.

Stand Out from the Competition

It’s important to understand that customers always have options to buy any product or service. Setting your brand apart is a constant challenge in a crowded marketplace with multiple vendors selling the same product. Offering installment options can be a unique selling proposition that helps you stand out from the competitors.

Installment plans provide a tangible benefit to customers that goes beyond the product itself. This distinctiveness can be a powerful marketing tool that attracts attention and helps your brand stand out in the minds of customers. In a time where customer experience plays a significant role, providing varied payment options shows that your business is adaptive, customer-focused, and willing to put in the effort to enhance the shopping experience.

How can Customers Pay in Installments?

You can decide how you want the customers to pay for the product and the installment terms. For instance, you can ask the customer to pay a percentage of the payment upfront and divide the remainder into equal payments or convert the complete amount into an installment plan. Similarly, for services, customers can pay a part of the price as a down payment and the rest in easy-to-pay portions.

Whatever structure you use, keep the terms and conditions clear to customers. Let them know how much they’ll be paying in total and how the cost is broken up into different installments.

Wrapping Up

Integrate installment payments in your business as a payment option to provide customers a smooth and secure experience. You need a reliable and seamless payment solution to ensure installment plans can be integrated effortlessly. PayTabs is a reliable payment solution provider that has options for everyone. We are experts in simplifying the payment process and enhancing customer satisfaction to make them more likely to return.

PayTabs has partnered with different payment options spanning the Middle East, such as Visa, MasterCard, Meeza, and Apple Pay. We also offer payment facilities, including EMIs and Buy Now Pay Later, which allow customers to pay for a product any way they prefer.

If you want to take your sales to the next level, join thousands of merchants worldwide by offering installment plans through PayTabs.

Freelancing is no longer just a side hustle or a part-time job to earn extra money. More and more people are becoming full-time freelancers and getting steady payments from the comfort of their homes. The rise of the gig economy has also fueled this development, with freelancers having access to opportunities across industries and beyond geographical boundaries.

One of the most crucial aspects of freelancing is getting paid at the end of your service. While full-time employees receive timely paycheques at the beginning or end of every month, freelancers can get paid in multiple ways throughout the month. According to a report from the Independent Economic Council, nearly 74% of freelancers don’t get paid on time.

This highlights the difficulties freelancers face when it comes to payments. Transparent terms and conditions for the payment, along with a robust payment gateway, help freelancers be compensated for their work on time and fully. In this post, we’ll discuss how PayTabs can help freelancers and small business owners accept payment with just their Freelancer Certificate.

How Freelancers Get Paid?

The way freelancers get paid depends on their industry, experience, client preference, and preferred mode of payment. Here are some common payment models that freelancers often utilize:

Hourly Rate

This is one of the most straightforward payment models for freelancers. They can use time-tracking software or tools to track how much time they spend on a project and then bill the client for the total number of hours they worked.

Project-Based Fee

This is one of the most straightforward payment models for freelancers. They can use time-tracking software or tools to track how much time they spend on a project and then bill the client for the total number of hours they worked.

Per Word/Page

Freelancers working in the content sphere as writers or editors often charge per word or page. Based on their skills, experience, and the client, different freelancers can also be paid different amounts for the same content piece.

Commission Based

Freelancers working in the sales and marketing teams often earn a commission based on the sales or leads they generate. While the earning potential is quite high in such a payment model, it is quite uncertain as the income depends on how many products were sold or promoted.

Retainer Agreement

Retainer agreements are a great way for freelancers to ensure a stable and predictable source of income. Clients retain the services of a freelancer for weeks or months at a time and pay a pre-determined fee at regular intervals, irrespective of whether the freelancer worked in that period or not.

Different Payment Methods for Freelancers

In this digital age, freelancers can accept payments from clients in a wide range of methods. These platforms eliminate barriers to traditional payment methods and offer freelancers speed, security, and convenience. Some of the different methods by which freelancers can accept payment are:

Direct Bank Transfers

Direct bank transfers are a popular method for several freelancers to receive payments. Banks now offer online banking services that allow clients to transfer the payment to the freelancer’s bank account directly.

Peer-to-Peer Payment Networks

Peer-to-peer platforms like PayPal, PayTabs, and Venmo have transformed the way freelancers receive payments. These platforms allow international and multi-currency transactions so that freelancers can request payments from clients across the world. Once the payment is received, they can either transfer it to their bank account or use it directly from the digital wallet.

Freelance Marketplaces

Freelance marketplaces like Upwork, Freelancer, and Fiverr offer built-in payment systems that facilitate transactions between clients and freelancers. Take Upwork, for instance. When the work is complete, the client pays Upwork the amount. The platform deducts a percentage of the amount and transfers the rest to the freelancer’s account.

such as low transaction fees, borderless transactions, and potential privacy benefits.

From Food Carts to Handicrafts — PayTabs for Freelancers

PayTabs is a comprehensive online payment solution designed to meet the needs of freelancers and business owners from every industry. Its range of features makes PayTabs an attractive choice for freelancers seeking a reliable and efficient payment platform.

Business owners who want to work in the Middle East and have a Freelancer Certificate can easily accept payments from clients and customers through PayTabs. It offers seamless onboarding that doesn’t require any paperwork and enables them to accept payments right away. The process is quite straightforward.

1. Sign Up: The first step is registering for a PayTabs account as an individual or a business.
2. Invoice Creation: Use the PayTabs dashboard to create and send professional invoices to the clients. You can also customize the invoices with your branding.
3. Payment Links: The next step is to generate payment links that can be shared with the clients through email, messaging apps, or social media platforms.
4. Multiple Currency Support: PayTabs supports over 160 currencies, allowing you to transact with clients across the globe without worrying about currency conversion.
5. Real-time Tracking: You can also keep track of the payments, transactions, and other invoices in real time through the intuitive dashboard.
6. Settlement Options: Choose between automatic or manual settlements based on your preferences.

Wrapping Up

Building a sustainable growth curve for small business owners requires getting paid promptly and securely. PayTabs offers a user-friendly platform that makes the payment process easy and streamlined. Its versatile payment options, multi-currency support, and emphasis on security enable business owners to focus on growth without worrying about payment logistics.

Get onboard with just your Freelancer Certificate today.

FAQs

1.Is it safe to receive payments through online platforms like PayTabs?

Yes, PayTabs prioritizes the security of transactions and employs advanced encryption measures to protect the private and sensitive information of both freelancers and clients.

2.How do I know which online payment solution is right for me?

Assess your specific needs and preferences before shortlisting payment solutions for your business. Consider the kind of clients or customers you’ll work with, the preferred payment methods, locations, and associated fees.

3.Can I use PayTabs on mobile devices?

Yes, PayTabs has a mobile-responsive platform that allows you to manage payments and invoices on the go on any mobile device of your choice.

The Covid-19 pandemic brought a shift to how we used to work. Pillows and blankets replaced desks and cubicles. Suddenly, every company realized the benefits of having a global team, sometimes with no central office location at all.

No office also means no tangible place to work from. Employees will get paid at the end of the month, no matter where they live. However, this style of working can raise questions for several people, especially freelancers and digital nomads who like to move around every once in a while. Complying with government regulations and obtaining necessary permits is important if you want to work in a foreign country and accept payments in your local bank.

If you want to work in UAE, KSA, Egypt, or other middle eastern countries, you need to be aware of the necessary requirements to work as a freelancer. In this article, we’ll discuss all you need to know about freelance permits and how to accept payments as a freelancer.

Government Requirement for a Freelance Permit

You can work as a full-time or part-time worker anywhere you like. The rules and regulations for each kind of employee are almost the same; however, if you want to work as a freelancer in the UAE, you need the correct documents.

One of these documents is a Freelance Permit which is needed if your employer is not in UAE. A Freelance Permit and a valid residence visa allow you to work and stay in the country. You won’t be able to practice your skills without these documents, and authorities can penalize you if you’re caught working without the permits. Moreover, clients will work with you only if you have the right work permits.

Onboarding by PayTabs

Once you’ve received the permit to work as a freelancer, it’s time to set up the payment process. You can get paid as a freelancer in several ways, and a robust payment gateway allows you to generate invoices and share them with clients. They can easily complete the payment in whichever form they want.

To start accepting payments as a freelancer, you can easily onboard yourself on PayTabs. We understand the hassle of managing different documents and paperwork and have created a simple checklist enabling you to get on board in real time.

To ensure a smooth onboarding process, ensure you have these documents handy depending on the country you want to work in.

⮚ Kingdom of Saudi Arabia

Documents required:

• Freelancer Certificate
• Government-issued identification documents such as Passport or National ID
• Extracts of bank statements, bank cards, or bank letters showing the account holder’s name, account number, IBAN, and account currency

⮚ United Arab Emirate

Documents required:

• Freelancer certificate
• Passport, Emirates ID and Residence Permit or VISA copy (for non-UAE nationals only)
• Bank account statement or online banking record displaying the IBAN, business name, account number, and bank name.

⮚ Egypt

Documents required:

• Valid national ID for identification of the freelancer
• Bank account statement or any other document displaying the IBAN, business name, account number, and bank name

Also Read: How to Receive Payments for Freelance Work?

Website Requirements

Here are some things we look for on your website to start accepting payments right away.

• Contents listed on the website are permitted to be sold by the merchant as per Trade license/Commercial Registration.
• Contact info, along with the company’s legal name and Trade license/commercial registration, are visible on the website.
• Customers have a clear description of what products/services are being sold.
• Products/services are clearly priced.
• Policies related to shipping and delivery, refund, cancellation, and privacy are clearly defined.
• Domain ownership proof or receipt of the domain is available if the ownership is not publicly listed under Whois.
• The site is secured and encrypted with an SSL certificate.
• Credit card scheme logos of MasterCard/Visa are visible.
• Website terms and conditions are clearly defined.

If you don’t have a terms and conditions document for your website, you can copy a sample template from the PayTabs website and modify it to suit yours.

Also Read: How to Get Paid as a Freelancer

Wrapping Up

Freelancing as a career choice has become quite popular for several people. It not only gives them the flexibility to work from wherever they want but also allows them to earn more by taking on more work. However, it’s not easy as picking up your bag and sitting in a cafe anywhere in the world. Countries like the UAE, KSA, Egypt, and more require the person to have a Freelancer Permit Accepted or visa to be able to work in that country and accept payments.

You can do away with the cumbersome paperwork and documentation and easily get on board with your freelancer certificate/permit on PayTabs. A leading payment service provider for countries in the Middle East, PayTabs is packed with features to make life easier for freelancers like yourself. Sign up with PayTabs, get onboard with a freelancer permit, and start accepting payments for your work right away.

Over the last 36 months, the world has seen significant changes in the way we work. Technological shifts, 4-day workweeks and the rise in remote work have led to an increase in people wanting to move away from the traditional cubicles and work from wherever they want.

As per The World Bank, nearly 47% of all the employees working worldwide are freelancers or self-employed. It has become easier for people to travel the world and keep earning to support their lifestyle.

While freelancers might not have a concrete office to work out of, they are still employees subjected to their country’s rules and regulations. For people wanting to freelance in the UAE or looking to move to the Kingdom of Saudi Arabia, it’s important to be aware of the requirements allowing them to work legally. If you’re not compliant, not only will you have trouble finding clients, you won’t be able to accept payments in your local account.

In this article, we’ll take a look at the requirements needed to work as a freelancer in Middle Eastern countries and how PayTabs can help you with the onboarding process.

Freelancing in the UAE

The rise of digital platforms and a helping hand from the government to promote a knowledge-based economy has helped freelancing gain popularity in the UAE. Freelancers can either obtain a freelance permit from the Dubai Economic Department (DED) or work with various free zones without any hassle.

However, it’s important to note that each Emirate may have different regulations, so it’ll be better to research the one you want to work in.

Dubai Economic Department (DED) Freelance Permit

The DED offers a permit for individuals wanting to freelance across various sectors. The permit must be renewed annually and is usually issued for a specific activity. An individual would require proof of professional qualifications or experience, a no-objection letter from the current sponsor, and a business plan outlining their services.

You should consult legal experts and relevant authorities to understand the requirements, fees, and documentation needed to obtain the freelance permit.

Freelance Permits in Free Zone

Several free zones in the UAE, like Dubai Media City, Dubai Internet City, and Sharjah Media City, offer freelance permits to individuals to work as independent contractors. They provide legal recognition and various benefits like a bank account, residence visa, and access to business support services.

Freelancing in Saudi Arabia

There is no “freelance permit” in Saudi Arabia, so freelancers need to establish a business entity for work. This is a slightly more complex process as compared to the UAE. Here are the steps involved:

1. Establishing a Eusiness Entity

Individuals need to establish a Limited Liability Company (LLC) or a Sole Proprietorship to be able to work as a freelancer. A Sole Proprietorship is suitable for a single owner, while an LLC requires a minimum of two partners.

2. Chamber of Commerce Registration

Next comes registering your business with the local Chamber of Commerce. You’d have to submit the documents needed, pay fees, and obtain a commercial registration or CR certificate.

3. Municipality Registration and Licenses

You might need additional licenses and permissions from the municipality or other relevant authorities depending on your business and where you’re applying.

4. Taxes and Zakat

No matter which country you work in, it’s important to understand the country’s tax obligations and ensure compliance with rules and regulations. In Saudi Arabia, freelancers are subjected to tax and zakat regulations, and you should be aware of this.

Also Read: How to Receive Payments for Freelance Work?

Freelancing in Egypt

Freelancing in Egypt has been gaining momentum quickly in recent years, especially in fields like digital marketing, content creation, software development, and graphic design. While Egypt is one of the most straightforward countries for freelancers in the Middle East, there are still some important considerations you should keep in mind:

Tax Registration

To avoid any compliance or legal issues, a freelancer is required to register for taxes with the Egyptian Tax Authority. As a freelancer, you’d have to declare your income periodically and obtain a tax card called “Form 1” as well.

Business Licensing

Depending on the kind of freelance work you’ll undertake, you may need to obtain a commercial license from the relevant local authority. This license is necessary to legitimize your business activities and ensure compliance with regulations.

Tax Deductions and Expenses

Proper documentation allows freelancers to deduct certain business-related expenses from their taxable income and save on costs for equipment, office space, and other relevant expenditures.

Contracts and Agreements

Freelancers are advised to have clear contracts and agreements before working with clients. The scope of work, payment terms, and other details that’ll help you establish a professional relationship in front of the authorities will be defined in the agreement.

Onboarding on PayTabs

Obtaining a freelancer permit or setting up a business entity is just the first step toward working as a freelancer in the Middle East. You also need to set up a robust payment process for accepting payments from the client.

PayTabs can help you in this regard. It is one of the fastest-growing payment gateway providers in the Middle East, allowing freelancers to get onboarded into their system easily. Once onboarded, freelancers can accept payments in different modes and from different channels with ease. If you’re a freelancer wanting to work in the UAE, KSA, Egypt, or any other Middle Eastern country, here are some things you’ll need to get on board properly.

Also Read: How to Get Paid as a Freelancer

⮚ For UAE

These are the KYC documents needed for a smooth onboarding:

• Freelancer certificate
• Passport, Emirates ID and residence permit or a VISA copy for identification purposes
• Account details through bank account statement or any other document

⮚ For KSA

These are the KYC documents needed for a smooth onboarding:

• Freelancer certificate
• Passport, national ID, or any other government issues identification document
• Extracts of bank statements or bank letters showing the account holder’s details

⮚ For Egypt

These are the KYC documents needed for a smooth onboarding:

• Valid national ID or any other identification document
• Bank account statement or other documents showing bank details

PayTabs, one of the leading payment gateway platforms in the Middle East, is helping freelancers and business owners like yourself to create a sustainable business and accept payments without any inconvenience. Get in touch with us to know more about how PayTabs helps you get onboarded with a freelancer certificate/permit.