Are you all set for SMB Day celebrations on June 27? After all, it’s a great opportunity to share your own challenges and accomplishments on national and international platforms as well as learn from other enterprises and entrepreneurs. Moreover, the Middle East has been witnessing a surge in small and medium businesses (SMBs) for quite some time now and their contribution to the region’s economy is hard to ignore. For instance, a couple of years back, it was observed that SMBs accounted for 94% of the companies operating in the UAE and their GDP contribution was pegged at over 50%. In Saudi Arabia, the number of SMBs was estimated to be more than 1.3 million towards the end of 2023.

Hence, as a part of June 27 SMB Day celebrations, you need to focus on practices, innovations, and strategies that help you survive, thrive, and boost revenue in a dynamic landscape. Adopting an efficient payment processing system is especially crucial in this regard. Let’s find out why.

How Efficient Payment Processing Improves Revenue for SMBs ?

As a modern small or medium business owner, you surely realize the importance of establishing an online presence to reel in more customers and ease the shopping experience for them irrespective of the time of day or location. And since payment processing is an integral part of converting potential customers, you must have a payment gateway that does the job quickly, safely, and efficiently. Here is how such a gateway can drive revenue growth.

• Higher Acceptance Rate: This is a key advantage of using an efficient payment processing system. If you embrace a payment orchestration platform like PayTabs, it can improve the transaction acceptance rate by routing payment requests to the most appropriate processors automatically and in microseconds. In other words, when fewer transactions are declined, your revenue is greater.
• More Payment Flexibility: When it comes to payment solutions for SMBs, the more options you offer customers, the better. Ideally, they should be able to pay through debit or credit cards, digital wallets, payment links, QR codes, internet banking, and so on. This is the flexibility that comes with an efficient payment processing system, and it means fewer instances of cart abandonment and more conversions. Put simply, when customers have multiple payment modes at their disposal, they will be more likely to go through with the transaction.
• Support for Multiple Currencies: Multi-currency support is one of the top SMB payment innovations that can help you do business with customers outside the Middle East too. You won’t have to deal with pesky exchange calculations as the gateway will take care of it. Also, when customers in foreign countries realize they can pay in their local currencies, they will feel more comfortable with your business. Their confidence and trust will grow, leading to bigger order volumes and repeat purchases.
• Easy Localization: A payment gateway that modifies the checkout experience based on different geographies is one of the best SMB financial tools you can use in the age of globalization. In other words, for every country, you can provide local payment methods to ensure a sense of familiarity in shoppers. The language and interface of your e-store can also be tweaked accordingly to resonate with the local culture and customs.
• Data Safety: Secure payment systems for SMBs encrypt sensitive data related to the personal information of customers, transactions, payment modes used, and so on. This way, hackers cannot use the same for illegal or malicious activities. So, when you choose an efficient payment processing platform like PayTabs, you can offer a completely secure checkout experience with robust authentication checks to shoppers and earn their trust.
• Fast Transactions and Settlements: Using the right payment gateway means every transaction will happen speedily and save precious time for customers. This will not only make a positive impression on them, but also encourage them to buy more from you in the future. Moreover, you will receive funds in your account on time too, which means you can maintain a healthy cash flow. This is essential for paying your employees and vendors without delays and running all operations smoothly.
• Actionable Insights: The best payment processing systems for SMBs enable you to analyze data and generate different kinds of reports to help you take better decisions in the future. Backed by data-powered insights, you can tweak your existing strategies to bring in more sales and revenue over time.
• Increased Customer Satisfaction: Offering shoppers a fast, efficient, and secure payment processing system can boost their overall experience and encourage them to spread the word among others. By offering multiple modes of payment, accepting different currencies, and localizing the checkout process, you can expand your customer base, reach out to previously untapped demographics, and venture into new markets. Gradually, improved customer satisfaction will lead to increased loyalty, more frequent purchases, and hence, greater revenue.

Round Off SMB Day Celebrations with More Earnings

 There can be nothing smarter than improving your revenue through smart payment processing to add a special spark to June 27 SMB Day celebrations. However, with so many options available in payment gateways and orchestration platforms, it can be challenging to pick one that aligns with your business’s specific needs. So, research thoroughly and compare multiple providers and their service fees before making a decision. Find out if they can scale or modify their offerings in line with your business’s growth or direction. And make sure to test their tools or go for a demo session before you partner up for good.

Last year, the retail sector in UAE was worth USD 30.17 billion, and by 2029, it is expected to grow at a 6.2% rate. A wide array of products, the easy availability of international and luxury brands, and a fast-growing economy are some of the key reasons driving this retail boom. Moreover, retail businesses of all kinds, whether they are dealing in textiles, jewelry, electronics, furniture, or décor accents, are increasingly shifting to the digital space. Besides the widespread penetration of internet and mobile devices, the emergence of tech-savvy and young customers is a major reason behind this. In fact, by 2025, the ecommerce market in UAE is poised to hit the USD 17 billion mark.

So, in such a scenario, it is not enough to just take your retail business online. You need to stay competitive as well. And offering financial flexibility to shoppers is a smart way to do the same. This brings us to the concept of installment payment, which enables customers to pay off the total bill in parts over a span of a few months instead of paying it all in one go. Since such installment plans are often interest-free, shoppers can easily make purchases without stressing about any additional burden caused by delayed payment. Now, let’s find out how installment payment schemes are benefiting the retail sector in UAE.

Installment Payments are Revolutionizing the Retail Landscape

As a modern retail merchant, you surely understand how consumer behavior has evolved with the advent of online transactions. Like everywhere else in the world, shoppers in UAE are looking for simple, fast, and secure ways to buy everything from necessities to luxuries. And with a reliable and efficient online payment gateway, you can ensure that too. However, introducing installment payments can add to the customer experience and benefit your business in multiple ways:

1. Higher Order Value

The installment payment option allows consumers to shop for more than they initially planned or thought they could afford. For instance, if they were planning on only buying sleepwear, they might end up adding expensive party dresses to the cart once they realize they don’t have to make the entire payment upfront. Hence, your sales and revenue will increase. Installment payment can especially help you get bigger orders during the festive season when people tend to shop more for their own needs and loved ones.

2. More Conversions

Very often, those who visit your website or explore your offerings might have a tough time deciding whether they should actually make a purchase. They might be worried about impacting their monthly budget and can even abandon carts after adding a number of items to the same. However, if you offer an installments payment option, potential customers will know that even if their current paycheck can’t afford it all, they will be able to repay gradually with the next few months’ paychecks. This will give them the confidence to check out or transition from the consideration to the decision stage.

3. Expanded Customer Base

If you have studied recent shopping trends, you might have noticed how millennials and Gen Z consumers prefer buying retail products online and aspire to own branded and even luxury pieces. However, those who have started working recently or get a fixed allowance from parents might not be able to afford pricey items in one go. By allowing them to pay in installments, you can make it easy for such shoppers to own their favorite pair of sports shoes, watch, smartphone, or handbag. Even those who hesitated to buy from you before will now flock to you, thereby expanding your customer base. The same idea holds true for retired consumers or senior citizens living on a fixed income.

4. Greater Probability of Repeat Purchase

To thrive and grow in the retail sector, you must encourage customers to shop from you repeatedly and not just once. And that will be easy with installments payment. Once they realize how easy and frictionless it is to buy even high-end or limited edition products from you, they will keep coming back for more.

5. Better Brand Image

By offering financial flexibility through installment payment, you can earn your customers’ trust and confidence. They will view you as a progressive business that keeps up with their changing needs and spread the word as well. Naturally, this will lead to better brand awareness and create a positive impression in the minds of those who are yet to consider or buy your products. Your base of loyalists will also grow.

6. Easy Scalability

If you are planning to foray into new markets or geographies, offering the installment payment option is a great way to go about it. Everyone likes having choice and flexibility, irrespective of location, and by simplifying payments, you can win over potential customers wherever you go. This is especially important if you are selling big-ticket items like air conditioners, gold jewelry, designer clothes and shoes, or bespoke furniture.

7. Competitive Edge

Say, both you and a competitor brand offer smart devices. However, while you offer an instalment scheme, your competitor requires total upfront payment. Where do you think consumers will go? They will undoubtedly come to you, assuming both of you are equally popular, have the same range of products, and a similar pricing structure.

8. Immediate Crediting of Funds

With installments payment, your account is immediately credited with the total bill amount though the customer has the freedom to make part payments over a convenient period of time. This means, you don’t have to wait for them to pay off the entire bill so that you can get what is due to you.

Take Your Retail Business to New Heights with Installment Payment

As a forward-thinking retailer in UAE, offering financial flexibility through installment payments is the key to attracting attention, earning customer goodwill, driving more conversions, raking in more revenue, and growing your business fast. Just make sure you choose an online payment gateway from a provider like PayTabs, so that it supports this payment model and facilitates a smooth and hassle-free checkout experience. Assess the nature of your business and its distinct needs before picking a gateway that aligns with your budget as well.

The ecommerce market size in the UAE is ready to hit an impressive worth of USD 17 billion by 2025. This boom is backed by the high penetration of mobile devices, tech-savvy consumers, and the flexibility and convenience being offered by future-ready merchants. For instance, consumers today can choose from various ecommerce payment methods based on their preference and comfort. This helps them feel in control and trust the business, thereby encouraging repeat purchases.

Offering multiple ecommerce payment options as a merchant helps you attract previously untapped demographics and reduce cart abandonment. This means more conversions and sales. Plus, when shoppers get to use their favorite payment method, they perceive your brand as high-value and refer it to others. Also, if you wish to foray into new geographies, offering different local payment methods means you can earn customer confidence, ease checkout, and accept payments efficiently and easily.

However, before deciding which online payment methods to embrace, understand the pros and cons of each from the perspective of both merchants and customers.

Debit and Credit Cards

Both cards require the shopper to input similar information while checking out and are widely used ecommerce payment methods in the UAE. However, while credit cards allow customers to spend more than what they can afford, debit cards are limited by the money available in the customer’s bank account.

Pros

• These cards are accepted by practically all online transaction platforms and merchants.
• While debit cards facilitate direct spending from the bank account, credit cards allow purchases on credit.
• Card companies secure both customers and merchants by employing strong fraud protection measures.

Cons

• Credit cards are one of those online payment methods that are still vulnerable to scams involving unauthorized charges, despite security measures.
• Merchants often deal with hefty fees charged by credit card companies, which might impact consumers too.

Digital Wallets

Among electronic payment solutions, digital wallets are gaining in popularity in the UAE. In fact, it is poised to grow at a 12.12% rate till 2028. The widespread adoption of smartphones has boosted the use of wallets, which store payment details safely and help complete transactions easily.

Pros

• There is no need to submit payment information repeatedly.
• User data is protected by advanced authentication and encryption mechanisms.
• Checkout is hassle-free, owing to fast transaction processing.

Cons

• Certain instances of data breaches have raised concerns with safety.
• Digital wallets, as electronic payment solutions, are not accepted by all merchants.

Bank Transfers

This is one of the commonly-used digital payment methods where customers can directly transfer money from their bank account to that of the merchant’s. These transactions are usually reliable.

Pros

• Fees involved are lower vis-à-vis credit card transactions.
• Lack of intermediaries means ample transparency.
• Bank transfers work well across borders and there are zero fees for currency conversion.

Cons

• It can take a number of days for transfers to get cleared.
• Delay in processing means merchants don’t receive funds immediately.

Mobile Payments

Counted among the popular digital payment methods, mobile payments enable shoppers to pay via their mobile devices. This can involve the use of QR codes, near-field communication, or voice commands.

Pros

• Customers can pay easily with a single scan or tap.
• Merchants in the UAE are increasingly adopting it.
• Customer payment details are encrypted to prevent fraud attacks.

Cons

• Fees charged for facilitating transactions might be high.
• Customers need smartphones and relevant apps to make payments.

Buy Now Pay Later (BNPL)

Leading online transaction platforms are offering BNPL in the UAE to ensure more flexibility for shoppers, so they can pay in affordable installments.

Pros

• Consumers can own even expensive items without hurting their budget.
• One of those ecommerce payment methods where the checkout is simple and devoid of complicated credit checks.
• Merchants can drive more conversions.

Cons

• Customers might overspend and have to deal with unnecessary debt.
• Regulations might not always be stringent.

Cash on Delivery (COD)

Among the different ecommerce payment options, COD is popular among customers who want to confirm an order’s accuracy or quality before shelling out money. However, the methods discussed above are gradually winning over cash, owing to convenience and flexibility.

Pros

• Favored by shoppers who aren’t tech-savvy or confident about digital payments.
• COD is apt for those who lack access to bank accounts.
• The risk of paying for an incorrect or damaged product is reduced.

Cons

• COD poses risk to merchants in case customers don’t pay.
• Merchants might have to bear higher delivery fees.

 Selecting the Right Payment Methods

Both merchants and consumers in the UAE are increasingly appreciating the importance of ecommerce. Hence, consider the following factors before picking payment systems, whether you wish to capitalize on the advantages of B2B ecommerce or B2C:

• Understand your target audience and assess the preferences of different demographics for improved customer experience and conversion.
• Consider the complexity of your business and industry, which will determine the level of security you need in a payment system.
• Account for cultural and regional variations to build trust and conduct transactions smoothly.
• Choose payment methods based on convenience and processing speed for greater customer satisfaction.
• Check if the payment system comes with the latest authentication and encryption mechanisms.
• Payment systems optimized for mobile devices are ideal for quick transactions.
• Consider transaction costs and processing fees to reap decent profits.
• The payment system should offer hassle-free checkout for enhanced customer loyalty.
• Innovative payment options can attract tech-savvy shoppers.
• Pick methods that comply with the regulatory landscape.
• Select payment methods that can be easily integrated with your website, mobile app, and existing infrastructure.

Join hands with an online payment gateway service provider like PayTabs to offer your customers a variety of ecommerce payment options and accept payments safely, quickly, and efficiently. PayTabs’ orchestration services can also ease and automate payment routing to boost the processing success rate.

FAQs

1.  What are the payment methods for ecommerce?

Common payment methods include mobile payments, debit and credit cards, digital wallets, buy now pay later models, bank transfers, and cash on delivery.

2. What is the payment process for ecommerce?

Once a customer provides payment details on your ecommerce site, an online payment gateway opens up. The payment information is encrypted and conveyed to the payment processor by the gateway. The processor verifies the payment details and approves or rejects the transaction, signaling the gateway accordingly. The gateway passes on that result to your site, for the customer to view. If the transaction is authorized, your account gets credited.

Running a successful business in the Middle East largely depends on how smooth, seamless, safe, and efficient you can make your customer’s experience. And offering payment flexibility can go a long way in ensuring the same. By allowing shoppers to make installment payments, you can improve their satisfaction while securing your own revenue. In fact, the buy now pay later (BNPL) model is gaining increasing popularity in the region due to a surge in ecommerce and the widespread usage of mobile devices for payments and banking. In KSA and UAE, internet penetration is close to 100%.

Moreover, according to a Deloitte report, since BNPL complies with Sharia law, Middle Eastern consumers are more comfortable about adopting it vis-à-vis credit cards. By 2028, the total addressable market for BNPL is likely to reach USD 3 billion in KSA. So, the time is right for you to grow your venture through payment flexibility. The following write-up explores the advantages of paying in installments for consumers as well as business owners like you.

Why Customers want to Pay in Installments

Listed here are the key benefits of installment payments for consumers:

• Easy Budgeting – Being able to pay in installments allows customers to manage their monthly budget better. They can spend on what they want without having to compromise on rent, essentials, or utility bills. This is particularly helpful for young shoppers, homemakers, or those who have retired.
• Saving for Emergencies – Installment payments allow consumers to protect their cash reserves and avoid exhausting everything in one go. This means, they can always set aside some money for rainy days or unforeseen events.
• Buying Premium Items – Paying in installments gives customers the power to own limited edition or expensive items that they would have foregone if they had to pay in full at once. By spreading out the total amount over several months, it becomes easy to afford designer clothes, jewelry, accessories, sophisticated gadgets, and more.
• Flexibility – With an installment or BNPL model, paying in incremental amounts is another benefit. Hence, if their situation permits (for example, if they receive a bonus at work or earn good returns on an investment), customers can pay off more with each installment and become debt-free fast.

Benefits of Installment Payment Plans for Merchants

By offering consumers installment payment flexibility, you can benefit in the following ways:

• Better Shopping Experience – When you provide customers an installments payment system on your e-store, they end up purchasing what they want without worrying about the total bill value. There are fewer instances of cart abandonment and shoppers appreciate the flexibility you offer them, which improves their trust and confidence in your brand.
• Improved Conversion Rate – The option to pay in installments encourages more site visitors to transition from the consideration to the purchase stage. And higher the conversion rate, the more sales you make.
• Higher Average Order Value – Customers manage to buy pricey items and spend more than usual with installment payments. Even strictly budget shoppers can buy what they desire affordably. This boosts the average order value, and consequently, your total revenue.
• Widened Consumer Base – Providing the option of installment payments also helps in expanding the base of customers by attracting those who probably hesitated to shop from your store before, owing to the pricing. You get to tap demographics like millennials and Gen Z shoppers.
• Upfront Payment – Offering the installment purchasing feature doesn’t impact your cash flow negatively, since you receive upfront payment from the customer’s bank. This means, you don’t have to compromise on your financial stability as a business while enhancing the customer experience.
• Enhanced Customer Loyalty – Since the installment financing feature eases the customer’s journey on your ecommerce store, they tend to refer your brand to others and keep coming back themselves for more shopping in the future. In the long run, this pattern improves retention and loyalty.

Make the Most of Installment Payment Plans

By now, you can see why embracing installment payment is the way to go for modern businesses. Besides offering more flexibility to consumers, such payment plans empower them to own the products they want and live a better life than what their immediate financial circumstances permit. As a merchant, you get to benefit from improved brand image, higher conversions, more sales and revenue, and an enhanced bottom line. If you are wondering how to get started, picking an online payment gateway like PayTabs can make your life easy. Integrating it with your website and app can take your customer’s checkout experience to a whole new level, while ensuring you receive payments on time, securely, and without any hassle.

FAQs

1. What are the advantages of paying in installments?

As a customer, making installment payments helps you to enjoy flexibility, buy what you want without worrying about money, own even premium products right away, manage your budget easily, and keep aside emergency cash. As a merchant, when you allow customers to pay in installments, it improves their shopping experience, gains their trust, drives more conversions, and boosts loyalty in the long run.

2. Are installment payments available for all purchases?

Installment financing might be available on all or some purchases, depending on the type and size of business, their policies, and nature and price of the product. Usually, most merchants offer the installment payment option for electronics, furniture, high-end jewelry, clothes, fashion accessories, vehicles, etc.

3. Can I pay off my installment plan early?

Yes, usually you can pay off your installment plan early by clearing any remaining balance. However, check if there are any penalties or fees associated with such payments. It is generally a good idea to use any extra money you have to pay off a purchase completely and become debt-free soon.

The ecommerce landscape across Jordan, Iraq, and Palestine has been growing steadily over the years. An 88% internet penetration has fueled the rise in online transactions in Jordan. On the other hand, internet users in Palestine have been observed to buy a whole host of items online, including furniture, cosmetics, toys, apparel, and shoes. In Iraq, total digital transaction value is expected to reach a staggering worth of USD 20.22 billion by 2028. It is evident that more and more consumers are realizing the convenience of purchasing both necessities and luxuries online. And this means a whole new world of opportunities for you as a merchant.

However, to capitalize on this ecommerce boom, you need the right ecommerce payment gateway. It can enhance the checkout experience for your customers and also make it easy for you to accept payments securely, quickly, and efficiently. So, how to pick a payment gateway that aligns with your business’s needs and goals?

Here are 13 Things to Consider Before Choosing the Perfect Ecommerce Payment Gateway

1. Merchant Acquiring Services

To accept card payments, you need a dedicated merchant account. If you are a small business, opting for an all-in-one service provider can be adequate. You can avail both payment processing and merchant acquiring services this way. Merchant acquirers refer to entities that collect payments based on cards and accepted by retailers. Acquirers send such payments to card issuers.

Now, if you are a large venture, a full-service merchant account is more apt. You get a virtual POS (point of sale) from an acquiring bank, so that it is easy to integrate card payments with your e-store. Moreover, you can also use payment orchestration services, so that every transaction is routed optimally to the right processor.

2. Country-specific Support

When choosing from multiple ecommerce payment solutions, make sure your preferred one works in your specific country and also allows you to accept payments from customers located in other countries. Providers like PayTabs, for instance, help you get paid from any corner of the world. Whether you want to strengthen or kick-start your international presence, your e-store should be equipped for cross-border payments.

3. Payment Methods and Currencies

The modern customer loves flexibility and choice when it comes to making online payments. So, pick from online payment gateways that offer shoppers various payment methods. If you wish to foray into new geographies, the gateway should offer localized payment methods in each country as well. It should also support as many currencies as possible, so that customers feel comfortable and confident about your website. Check if there are any additional fees for currency processing.

4. Product Permission

The payment gateway you select should permit the products you sell without any hassle, whether they are physical or digital in nature. Go through the list of restricted businesses before going ahead. Usually, categories like weapons, animals, illegal drugs, etc. are not supported by most gateways.

5. Hosted or Integrated

Ecommerce payment gateways can be hosted offsite or integrated with your e-store. Consider which one you want before making a choice, as both have distinct pros and cons.

In case of a hosted solution, the gateway handles PCI compliance and data security, which is an advantage. However, the customer gets redirected to a third-party domain, which can hamper conversion and sales. Top payment gateway providers address this issue by showing a payment window on the checkout page itself.

In case of integrated payment gateways, the biggest advantage is that customers don’t need to leave your site for purchase completion. The checkout experience is seamless. However, you need to handle the programming. Leading gateway providers offer development documents to help you do the integration in very little time though.

6. Payment Gateway Integration

Go for a gateway that has a fast and simple process for integration. They should also provide necessary technical support to your developer. The integration should not have a negative impact on the speed of payment processing or lead to suboptimal user experience.

7. Mobile Optimization

Since most customers nowadays use mobile devices instead of desktops to make online purchases, your chosen payment gateway should offer a checkout page that is mobile-optimized. It will improve customer satisfaction and boost conversions.

8. Payment Speed

Want to minimize instances of cart abandonment and offer a smooth experience to shoppers? Ensure that the payment gateway is good on speed. Customers should transition from the shopping cart to the payment confirmation page in the least time possible.

9. Recurring Payments

In case your business offers subscription-based services, opt for a gateway that automatically supports recurring payments. You should also be able to define parameters like billing cycles, subscription name, and prices.

10. Security

Secure payment processing is of paramount importance, whether your business is located in Jordan, Palestine, or Iraq. So, select a payment gateway that complies with the latest security standards like PCI, SCA, 3D Secure 2.0, etc. Keeping your customer’s sensitive data safe is vital for winning their trust.

11. Scalability

Try to gauge if the payment gateway can grow with your business and make global expansion frictionless. It should not only support multiple currencies and a variety of payment methods, but also comply with local regulations and handle increasing transaction volumes efficiently.

12. Support

When it comes to payment gateway selection, choose one that provides adequate and timely support whenever the need arises. Find out if the support team is available round-the-clock or for specific hours. Ask about the support channels, like live chat, email, phone call etc. Can you access resources like FAQs for common issues? Are the support representatives experienced and knowledgeable? Go through online reviews to get an idea about the same from other merchants.

13. Pricing Options

Different gateway providers have different fee structures. While some might charge fixed monthly rates and a setup cost, others can charge you per transaction. However, even a small percentage of the transaction cost can blow out of proportion if you have high-priced products or record large sales volumes. Ideally, opt for a provider that has a dynamic pricing model to help you scale cost-effectively.

Make an Informed Decision

Now that you know about all the things to look for in a payment gateway, get started by researching multiple providers. Go through their offerings, fee structures, and other features to gauge the gateway’s relevance to your business. Shortlist a few, compare them carefully, talk to representatives, and go for demos, before zeroing in on one.