How A.I. Can Supercharge Our Payment Gateway Game

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.

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

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

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

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

Installment Payments Benefitting These 5 E-Commerce Sectors

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

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

Reasons Why Top E-Commerce Sectors are Offering Installment Payments

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

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

Conclusion

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

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

FAQs

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

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

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

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