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.

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

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

Business Areas Where Installment Payments Shine

Goods

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

Services

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

How Installment Payments can be a Game Changer in Increasing Sales

Reduce Cart Abandonment Rates

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

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

Expanding Customer Base

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

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

Increases Average Transaction Value

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

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

Builds Trust and Long-term Relationship

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

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

Stand Out from the Competition

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

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

How can Customers Pay in Installments?

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

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

Wrapping Up

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

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

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