By 2026, UAE’s retail market is poised to hit a staggering volume of around USD 114 billion. And by 2029, the country’s ecommerce market is likely to reach USD 18.99 billion. So, whether you are a retailer with a brick and mortar store or run an ecommerce website, improving the shopper experience in this dynamic environment can prove to be immensely lucrative. Fortunately, a reliable and innovative online payment gateway provider like PayTabs can help by making your customer’s checkout process simple, fast, efficient, and secure. There is a slew of ecommerce and retail payment solutions in UAE that PayTabs offers to suit businesses of all types and sizes. Whether you are an established entity or just starting out, you can attract more traffic, drive more conversions, earn more revenue, and grow in the UAE and beyond steadily.

So, let’s learn more about PayTabs’ solutions that can help optimize your payments.

PayTabs’ Retail and Ecommerce Payment Solutions in UAE

Listed below are the cutting-edge solutions offered by PayTabs that simplify transactions, enhance customer satisfaction, and boost sales:

• Digital Invoicing

If you are looking for smart ecommerce payments solutions that allow you to do business with customers in other countries seamlessly, digital invoicing is the way to go. Through automation, it not only minimizes the scope of human error and cumbersome paperwork, but also increases your cash inflow. You can send automatically crafted invoices via SMS, email, QR code, WhatsApp, or social media to your customers and then can make the payment with just a few taps digitally. You can customize the invoices, track and manage all of them on a single platform, and accept payments in various currencies. Being able to pay in their local currency can also allow shoppers to trust your business better, feel comfortable, and keep coming back for more.

• QR Code

One of the best retail payment solutions currently, QR codes enable customers to do a simple scan with their smartphones, check the bill amount, and make the payment via an app or card. The entire process takes seconds and doesn’t involve contact of any kind. Whether you run a restaurant, fashion outlet, or pharmacy, QR code payment can help you promote sanitary shopping.

• Payment Links

If you are not too keen on adopting complicated ecommerce integrations for payment, PayLinks from PayTabs can simplify life for you. After creating a custom link for payment (you just need to follow a few easy instructions for this), you can share the same with shoppers via SMS, email, any messaging app, or social media. When your customer clicks on it, they will be instantly routed to a payment page and they can do the needful there. PayLinks also makes it hassle-free to create ads or promotions on social platforms and share links to encourage impulse purchases.

• Social Commerce

When it comes to ecommerce payment solutions, you cannot ignore the importance of simplifying shopping on social media. Especially if you are a freelancer, startup, or influencer, it makes sense to ease the shopping experience of those who follow you sincerely on Instagram, Twitter, Facebook, etc. The good news is that Paymes from PayTabs makes it all frictionless. Even if you don’t have a website, you can set up a digital storefront and display your products along with relevant information in minutes. You can even personalize or brand your store. Once a shopper places an order, you can send them a payment link or static QR code to complete the transaction.

In case you like showcasing your products through Instagram reels, sign up on Paymes’ ReelsPay, add your video link, list the items, and share the link with those who follow you. You can also add the ReelsPay link to your story or profile to generate more awareness.

• POS Machines

PayTabs will soon bring advanced POS machines to disrupt the market for retail payment solutions in UAE. These machines will not only be extremely reliable and precise, but will also facilitate superfast transactions. Besides making the checkout experience seamless for customers, these POS machines will have in-depth reporting capabilities, so you can gain better visibility of your business’s financial side.

For all the solutions mentioned above, PayTabs takes special care to ensure the security of sensitive information or data. Robust encryption and authentication measures are put in place to prevent frauds and malicious attacks, which is good news for both merchants like you and shoppers. Your customers won’t need to worry about losing money or compromised details, while you can successfully avoid reputational loss.

Scale Your Retail or Ecommerce Business with PayTabs

 In a nutshell, when it comes to future-forward retail and ecommerce payments solutions in UAE, PayTabs is your best bet. In case your venture is large and you deal with complex operations or workflows, you can consider availing payment orchestration solutions too. This way, you will be able to manage multiple banks, payment gateways, and payment processors in a unified manner and cost-effectively. PayTabs also provides sophisticated analytics capabilities, so you can derive data-backed insights, spot gaps in financial operations, and make better decisions in the future.

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.