We are regularly asked about which payment gateways new eCommerce sites should use in the Middle East. Often, there is either a lack of information, confusion about the choices, and/or how payment gateways actually work and why they’re so essential for web businesses. After surveying the market, we know that the main issues facing SMEs across the Middle East today are setup fees, transaction costs, lack of information, and trust from potential consumers to actually make payments online.
With many SMEs and startups that are bootstrapping, cashflow is the major concern. When the CEO of Souq.com was interviewed in October 2012, he said that “about 50% of online orders are still cash on delivery in the region. In order to build a brand that customers trust, you must offer COD.”
In an interview near the end of 2012, Elias Ganem, Managing Director of PayPal Middle East and North Africa said, “mobile and online commerce are very popular in North America and Europe, but is still in its infancy in the Middle East and North Africa. Mobile technology is hugely popular and people are gaining confidence in online retailing through exposure to daily deals, private sales, airline websites, etc. We see this trend happening in the MENA region.”
SME World asks, what’s the hold up people?!
IF YOU NEED MORE INFORMATION ABOUT PAYMENT GATEWAYS, ASK THE EXPERTS AT WWW.74BY2.COM
On making an online purchase in the UAE and using my debit card to pay I have encountered on 2 occasions the same banking error. They have taken the payment twice, as they assumed Pre authorisation and the actual payment were 2 seperate puchases. By UAE banking legislation they keep hold of the second payment for 30 days. Bad Banking procedure and the banks inability to rectify the mistake quickly means I have lost all faith in conducting online transactions in this region. Inept banking I would say is the reason for lack of confidence.
I guess I’m an optimist and truly likes moving forward with the times. If the evidence is there that payment gateways are working in North America and Europe, why should it take this long for the Middle East to adopt eCommerce for all online transactions and the confidence for making payments online?
#JustSayin