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

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

Reasons Why Payment Gateways are Driving Ecommerce Success

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

The many benefits of such gateways are detailed here:

• Safety

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

• Checkout Simplicity

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

• Multiple Payment Options

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

• Multi-currency Support

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

• Scalability

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

• Easy Integration

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

• Smart Analytics

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

• Cost-effectiveness

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

Payment Gateways are the Future of Ecommerce

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

In another couple of years, the ecommerce market in the Middle East is likely to reach an impressive worth of $50 billion. as per a recent report from Deloitte. This sharp growth is being driven by the increasing penetration of mobile devices, a noticeable spike in the number of tech-savvy, mostly millennial shoppers, and the convenience of buying anything from anywhere. Digital revolution is also helping online businesses to expand beyond geographical boundaries, reach customers in the remotest of places, and boost sales and revenue in an unprecedented way. However, multi-currency payment gateway integration is essential if you want international transactions to go smoothly and without any security bumps.

What you need is a gateway that helps you navigate currency-related intricacies and rules in various countries, so that customers can enjoy a seamless experience and you can receive payments on time. Multi-currency support in payment gateways makes life easy for customers who prefer to use their own currencies for payment and avoid the hassle of conversions. As a business, you benefit too, since you can streamline, track, and manage transactions with better efficiency and in less time, whether you are receiving payments from shoppers or paying international vendors. Now, let’s find out more about the processing of a multi-currency payment, some common roadblocks involved, and the how a payment gateway powered by advanced technology is changing the game.

Multi-Currency Payment Processing – What Really Happens?

Ensuring currency diversity for online businesses can arm global shoppers with much-needed flexibility and expand the base of customers significantly. However, you first need to know how the process works. Here is a quick overlook:

• Order placement and currency exchange – When a shopper places an order in their chosen currency, your processor automatically converts the amount into the currency you use. This conversion occurs at the exchange rate.
• Transparency – The total payment amount then pops up in front of the customer in their local currency, so they can complete the purchase without worrying about transparency, fluctuations in the exchange rate, and unexpected conversions fees.
• Multi-currency transactions – Your payment processor then facilitates seamless multi-currency transactions by employing tools for managing the exchange rate. It enables you to set an exchange rate margin too.
• Protection against exchange rate fluctuation – A fee is charged over and above the existing market exchange rate to protect you against fluctuating exchange rates and handle the cost of currency conversion.
• Settlement of funds – Once currency conversion is complete, fund settlement happens in your base currency.

Executing a Multi-Currency Payment Step-By-Step

Growing your business with multi-currency capabilities requires you to understand every step involved in the payment process. This will give you a clear idea about the customer’s checkout experience and help you choose the ideal gateway for fast and glitch-free transactions. The steps outlined below also hold true if you are paying foreign suppliers, in which case, you will be the customer.

1. Customer makes a purchase decision – The cycle is triggered when a customer decides to buy a particular product or service and checks if your site supports multi-currency payments.
2. Customer selects a currency – They then peruse the different currency options on the payment page and select an international currency or their local one.
3. Gateway shows the payment amount – Once the customer picks a currency, your gateway converts the product’s price into the said currency and displays it. The amount is determined by the existing exchange rate and includes fees charged by you or the payment processor.
4. Customer checks payment breakdown – The shopper reviews the displayed amount and checks the fees levied for international transaction, currency conversion, etc.
5. Customer selects payment mode – Post review, the customer chooses a payment method, be it wire transfer, credit card, digital wallet, etc.
6. Customer provides financial details – In this step, the customer supplies all payment-related information, such as name on the card, billing address, card or account number, phone number, and so on.
7. Gateway processes payment – Next, the multi-currency payment gateway integration accepts the data entered and processes the transaction in the currency chosen by the customer. The payment is approved and completed after your processor communicates with relevant card networks and financial institutions.
8. Customer account is debited & merchant account is credited – After payment authorization, the customer gets a message that shows the transaction is complete. The necessary amount is deducted from the shopper’s account in their local currency and credited to your account after conversion to your base currency.
9. Fund settlement happens – You can retain the received amount in the base currency or get it converted to your local currency. Remember that the time required for fund settlement depends on the amount in question and where the money is supposed to go.
10. Payment confirmation reaches the client – Lastly, the customer receives a payment confirmation from your end, covering the transaction ID, details, and payment amount.

Challenges Facing Global Payments

Whether you accept payments in multiple currencies, make payments to globally situated suppliers, or have subsidiaries in diverse geographies, managing foreign exchange and currency can be time-consuming, tedious, and expensive. While overcoming challenges in global payment processing is possible with an automated and tech-powered gateway, you need to be aware of the key problems first:

• Unpredictable conversion costs (currency conversion fees, bank charges, fluctuations in exchange rate)
• Complicated operations (accounting adjustments, currency conversion, reconciliations) increase administrative effort and risk of mistakes
• Currency-related risk for both customers and merchants (currency fluctuations and volatile exchange rates negatively affect cash flow)
• Risk of cyberattacks due to gaps in the payment processor
• Complex relationship with foreign banks (language barriers, difficult communication, time differences)
• Slow processing speed due to greater scrutiny by multiple intermediaries along the payment chain
• Limited number of currencies supported by some gateways
• Varying international payment regulations in different regions
• Difficulty in tracking international payments and poor visibility into the process

Benefits of Multi-Currency Payment Gateways

Payment Gateways powered by technological revolutions like artificial intelligence and machine learning can help you accept and make multi-currency payments efficiently, affordably, and with precision. You won’t need to maintain relationships with multiple banks in different countries. Instead, you can leverage automation to make the global payment system more streamlined, lower the risk of currency fluctuations, and obtain insights to improve your business’s profitability strategically. It can save you time, energy, and free up more resources for core business operations and ideation. Some of the other key advantages are detailed here:

• Smooth Foreign Exchange Activities – You can rest assured that payments will be processed at the latest exchange rates and the risk of volatility will be managed effectively. In case you are paying foreign suppliers, you won’t need to worry about having enough money in your local bank account or rushing to purchase foreign currency if you want to place a large order suddenly. Leading payment gateways can fund a virtual account in your chosen currency, convert to the local currency, and carry out payments in an automated way. This way, you can maintain a healthy relationship with vendors and suppliers.
• Automatic Invoicing – In case you sell subscription-based services in different currencies, an advanced payment gateway will create and send invoices in the currencies required, based on preset rules. This will save time and eliminate human errors related to currency conversion. Moreover, you won’t need to remember to send invoices on time or worry about customers forgetting to make recurring payments every month, quarter, or year.
• Exchange Rate Locking – Some gateways allow customers to lock in a rate for a certain period of time, so any change can be prevented before the payment is done. This can build goodwill over time and encourage customers to make repeat purchases.
• Currency Risk Management – The best-automated payment processors protect you against fluctuations in the exchange rate through special tools and hedge strategies. This way, you can maintain a positive cash flow even if currencies move unfavorably.
• Easy Reconciliation – To simplify accounting and reconciliation, top payment gateways convert funds received in multiple currencies into the local currency you use as a merchant. This happens automatically and reduces manual effort.
• Compliance – Regulations associated with international payments are different across geographies. Luckily though, payment gateways backed by automation can ensure compliance at every stage without manual intervention. They can alert you in case of any fraudulent activity, verify transaction details, and even generate insightful reports.
• Hassle-free Integration – The best multi-currency gateways are easy to integrate with e-commerce platforms and enterprise resource planning systems. This makes it easy for foreign customers to execute payments in their local currencies without getting diverted from your site. It inspires confidence in shoppers and earns their trust.
• Smart Tracking – Automated payment processors can track all transactions in real-time, providing updates to both merchants like you as well as customers. This speeds up the entire process and troubleshoots issues before they magnify. You can also identify ways to improve the checkout experience further and introduce more security measures if required.

In a Nutshell

So, now that you realize the many benefits of multi-currency payment gateway integration and how the process works in reality, are you ready to choose the right gateway for your online venture? Take out time to research the various options available, compare the services and charges of different providers, and go through testimonials of their past clients before taking a decision. Assess your business’s distinct needs and consider its size and type as well while making the choice. To scale internationally and thrive despite unpredictable currency movements and exchange rate volatilities, you need a powerful payment gateway like PayTabs that is fast, efficient, and absolutely secure. It will help you gain more control over transactions, comply with regulations in different countries, minimize or eliminate human errors, and take decisions driven by real data – everything that you need for a better bottom line.

A McKinsey article released in 2021 turned the spotlight on how the Middle East is steadily embracing digital payments and moving away from conventional cash transactions. Factors responsible for this paradigm shift include smartphone penetration at 80-90%, advanced regulatory initiatives, the recent health crisis, and the emergence of forward-thinking payment gateway providers.

In fact, the UAE witnessed a 9% annual growth rate in digital transactions between 2014 and 2019, while card payments in Saudi Arabia shot up by over 70% from February 2019 to January 2020. As per McKinsey’s survey, 60% of respondents in the Middle East revealed that digital wallets are likely to be the most preferred payment mode in the coming years, followed by cards (both credit and debit) and bank transfers. And payment gateways are all set to capitalize on this trend. Artificial intelligence in payment processing is especially setting the wheels in motion to create a win-win scenario for both sellers like you and buyers. Let’s try and understand this better now.

Why Artificial Intelligence (AI) is the Way to Go for Payment Gateways?

We live in a world where technology is driving the operational efficiency, cost optimization, profitability, and scalability of practically every business. Hence, leading providers like PayTabs enhancing payment gateways with AI doesn’t really come as a surprise, given the multiple perks of doing so. Here is a detailed look at how AI is changing the game of digital transactions:

• Bolstering Security

Fraudsters, hackers, and scammers are getting smarter every day and devising unique ways to steal sensitive information and private data. And unless the right measures are taken, online transactions increase the risk for both sellers and shoppers. Luckily, AI can step in here to detect malicious intent and action, stop unauthorized access, and shield both parties against various cyber threats. It can alert you about fraudulent transactions with the help of cutting-edge algorithms and analysis done in real-time. Using security strategies like predictive analytics and biometric verification can help strengthen your security system and earn the customer’s confidence.

• Getting Personal for Good

Understanding customers is simple with artificial intelligence in payment processing. From their habits and preferences to purchase patterns and challenges, you can get a good idea of everything you need to forge a deep bond. In other words, AI can make sense of large chunks of data that are captured when you enable customers to pay you digitally. By selecting a suitable AI-driven payment gateway, you can lend a personal touch to every shopper’s experience and nudge them to buy products they find useful or relatable. Even if you have a customer base that is growing slowly, cross selling vs upselling in this way can bring in more revenue. AI can also motivate shoppers to buy more by offering customized deals or discounts. For a quick checkout, it can automatically present them with their favorite method of payment. In the long run, this will retain more customers and drive loyalty.

• Speeding Up Processing

When you go for a gateway that thrives on AI, you can handle numerous, large, or complex transactions easily, even during holidays and sales. AI not only streamlines and automates manual, repetitive actions wherever possible but also minimizes mistakes. It also eases the integration of the gateway with multiple platforms, whether it’s a website or mobile application. Moreover, customers can enjoy a hassle-free experience across tablets, laptops, desktops, and smartphones. In fact, enhancing payment gateways with AI helps in picking the smoothest transaction method with the highest probability of success. The technology can also reroute a transaction in case data indicates that the particular method failed in the past.

• Preparing You for Global Expansion

If you want to expand to new shores and grow beyond the Middle East, you need a payment gateway that helps you accept multiple currencies from different parts of the world. Currency exchange should be a cakewalk, and the processor should be able to handle all rules and regulations associated with international transactions. An AI-powered gateway is the answer. This way, you can stay on the right side of the law while ensuring glitch-free cross-border transactions. Another plus is that AI helps localize the user experience so that no matter where you choose to branch out, your potential customers will get a payment interface and process that aligns with the language they use, their culture, tastes, and more.

• Making Customer Service Efficient

With artificial intelligence in payment processing, it is possible to cater to customers at any time. Unlike human customer support executives, virtual assistants and chatbots don’t need rest and are always available. AI also empowers them to handle a wide array of commonly asked questions easily and promptly. The best gateways also throw natural language processing (NLP) into the mix so that customer service feels human and relatable. Whether a customer is looking for a certain kind of product, discounts, or past transactions, AI-driven bots can tackle it all.

• Keeping the System Running Smoothly

We live in a world where it is possible to lose a customer even if there is the slightest snag during checkout or the payment gateway is not working for even a couple of minutes. AI can deal with this challenge easily by anticipating and troubleshooting problems before they crop up or blow out of proportion. This technology can automatically supervise and test the gateway at regular intervals, ensuring the payment process works without hiccups. Since there is no need for human intervention, you will have more time and energy to focus on core business aspects. Moreover, AI will help you use the gateway’s bandwidth judiciously and spread transactions evenly across servers. Hence, the overall system will be fast and smooth. You won’t have to worry about conducting updates by due dates, either.

• Taking Profitability to New Heights

Top players like PayTabs offer AI-powered payment solutions to help businesses enhance profit margins, irrespective of size or nature of establishment. They enable you to accept payments on time, safely, and efficiently. This leads to a positive and stable cash flow. The best gateways also charge you competitively, and there are no hidden costs. Features like advanced data analytics help you identify strengths and weaknesses and zero in on techniques to boost future sales and revenue. AI-driven gateways can drive operational efficiency by automating and streamlining most processes. It can also reduce or eliminate the cost of human-induced errors on the way. Apart from handling large transaction volumes and forecasting demand, you will be able to allocate resources properly, minimize cart abandonment, and leverage customer feedback to boost satisfaction levels. All of that will translate to a better bottom line.

In a Nutshell

In the coming years, using artificial intelligence in payment processing will not only be preferable but essential. You will need an AI-backed payment gateway to stay relevant and thrive in a fast-evolving environment dominated by ecommerce. However, the presence of multiple providers can make it difficult for you to make a decision easily. Hence, make sure you exercise due diligence. Gather adequate information about at least a few providers, request demos, compare their services and quotes, and don’t forget to check testimonials. Remember that the one you choose should not only align with your business’s unique needs but also your budget.

A recent news release from the Ministry of Economy – UAE clearly indicates the country’s superiority in attracting venture capital investments in the Middle East and Africa region. In fact, startups here managed to draw capital worth AED 4.3 billion last year. So, the time is undoubtedly right to hop on the bandwagon and start the business you have always dreamed of or take your existing one to new heights. However, catering to the modern customer requires you to embrace the digital world and make the shopping experience completely smooth and hassle-free. Consider payment gateway providers in UAE to rise to the occasion.

A payment gateway is essentially instrumental in making it easy for customers to purchase anything online and pay securely via bank transfers, debit/credit cards, or digital wallets. It takes seconds for a gateway to process a payment from the moment a customer places an order and submits card information to the instant the card-issuing bank approves the request and the order is fulfilled. The best online payment solutions for UAE businesses ensure seamless data encryption and protect the sensitive information of both parties involved. Are you ready to learn more about the benefits of adopting a payment gateway and how you can pick the right one? Read on to learn more.

Why Embracing a Payment Gateway is the Right Move

If you are looking to welcome brand new opportunities as a seller while easing the lives of customers, there are plenty of online payment solutions for UAE businesses that can come in handy. This is also what you need in a dynamic ecommerce landscape where more and more people are using digital devices to buy everything from clothes and household appliances to groceries and cosmetics. When you adopt a payment gateway, you can expect the following benefits —

1. Security Gets Better: When you keep all information associated with digital transactions safe, your repute as a seller shoots up. And payment gateway providers in UAE understand that. With a reliable gateway, neither you nor buyers have to stress about fraudsters and cyberattacks. Top providers in the UAE make use of sophisticated encryption techniques and robust protocols to prevent data breaches and spot suspicious activities on time.
2. Customer Experience Improves: To stay ahead of the competition, you need to earn your customer’s trust and confidence and forge a connection fast. And providing them with a choice in payment modes is a great way to do that. Shoppers will appreciate the flexibility, and the checkout process will become more efficient, faster, and smoother.
3. Revenue Grows by Leaps: When you use a payment gateway, you attract all kinds of customers, whether they prefer using Internet banking, cards, or e-wallets. You can reach out to more demographics and locations, which will translate to fewer cart abandonments, more repeat purchases, and higher sales. In other words, your revenue will increase sharply. Since you will also receive timely payments from any part of the world, your business will get a chance to grow and expand quickly.
4. Customization Brings in More Profits: When you go for popular payment gateway providers, such as PayTabs, you get a solution that aligns with your startup’s distinct needs. The provider can study your branding, product, customer personas, and other parameters before suggesting a plan that is cost-effective, easy to adopt, learn, and use. Besides optimizing the cost of processing payments, you will spend less time on repetitive, manual tasks.

Questions to Ask Before Picking a Payment Gateway in UAE

Choosing the ideal option from multiple online payment solutions for UAE businesses can be a tad challenging. So, before you get started, ask the provider these questions:

• How simple is the usage?

Choose a payment gateway that offers a unified and comprehensive dashboard. This will help you monitor it across multiple devices. Apart from keeping all payment methods in one place, you will be able to peruse all transactions and access crucial financial reports quickly.

• Is it easy to integrate?

You may have a website, mobile app, or both. In any case, pick a gateway that is easy to integrate with all platforms. This will leave you ample time and energy to focus on major business areas. The onboarding should be simple, and the provider should offer the right plugins, APIs (Application Programming Interface), and SDKs (Software Development Kit).

• What is the settlement speed?

As a startup, you need your bank account to get credited at the earliest so you can always maintain a positive cash flow. So, pick a gateway with quick settlement speed and decent uptime. Check if the gateway allows the use of automation tools and is scalable enough.

• What is the limit on transactions?

Consider your business needs and transaction sizes before selecting a payment gateway. Make sure the maximum transaction limit offered doesn’t force you to lose customers or lucrative sales. Also, transactions involve the payments you make to employees and vendors. So, the system should be up for the job.

• Do you support multiple currencies?

Leading payment gateway providers in UAE, like PayTabs, let you accept payments in multiple currencies from around the world. You also get the real-time currency conversion feature, which makes the process seamless and helps you grow your business beyond the Emirates.

• Can you handle recurrent billing?

If you run a gym, club, or co-working space, you might need an efficient system that can handle recurring billing, be it on a weekly, monthly, or quarterly basis. In such a scenario, the payment gateway should come with the ability to streamline subscriptions, encourage repeat transactions, and make the customer’s experience glitch-free.

• What are your security features?

Your payment gateway should comply with PCI DSS or Payment Card Industry Data Security Standard. They might use advanced encryption standards and ISO certifications as well. You can enquire about the provider’s past record in preventing and handling fraud situations. Ask if they use smart technologies like machine learning and how they block transactions which appear to be high-risk.

• Do you provide analytical insights?

As a startup, it will help you to know how your business is doing periodically so that you can identify and address gaps while strengthening the areas in which you are already doing well. So, go for a payment gateway with built-in analytics to help you track your financial performance and determine ways to improve sales and customer experience.

• How robust is your customer service?

Going for a payment gateway provider with a round-the-clock customer support team is wise since technical issues can arise anytime. They should be easy to reach via multiple channels, including email, call, text, and live chat. Ask about the resolution turnaround time for both small and major problems.

• Is it cost-effective for my business?

While pricing should not be the only criterion when it comes to choosing from the various payment gateway providers in UAE, make sure you are clear about the different fees they charge for setting up the gateway and processing transactions, as well as monthly charges. Keep your transaction value and volume in mind while deciding on a provider that suits your pocket.

Conclusion

By now, you must be in a better position to pick from the many online payment Gateways for UAE businesses. Remember to research well and compare multiple providers before taking a call. After you list down a few, talk to each of them, if possible, and request demos and quotes. Remember to go through reviews and testimonials to assess a provider’s professionalism, performance, and quality. Trusted payment gateway providers like PayTabs can not only improve operational efficiency but also help you attain multiple milestones, attract more traffic, drive more conversions, and help you scale your business without worry.