With the continuous development of e-commerce platforms and their spread in various countries in the world, the need to enhance the culture of paying and receiving money online began to increase. And people began looking for a way to organize and facilitate online financial transactions between clients and merchants. So, online payment gateways appeared. But, what is it all about? What are the criteria for choosing the suitable and right one? And which ones are more popular in the Arab region?
What are online payment gateways?
They are an electronic technology used as an intermediary or a third party on e-commerce sites and platforms to secure collecting funds from customers and send them to the merchant's bank account. Payment methods on online payment gateways vary between credit cards, online banking services, e-wallets, or cash payments.
According to PPR, the most popular way to pay for online purchases in the Middle East and African region is credit cards, which have a 44% market share.
Meanwhile, the second most popular way for online purchases is cash with 23% of the e-commerce market, followed by bank transfers at 14%, and e-wallets at 11%.
How to choose the right online payment gateway?
The question that is often asked when talking about online payment gateways is how to choose the appropriate payment gateway for your store and your customers. Choosing an inappropriate online payment gateway will cost you money, time, and customers as well. Here are some criteria that you should follow when choosing your store's online payment gateway:
- Target audience: Defining the target group for your online store will make it easier for you to choose the correct online payment gateway. Geolocation, for example, allows you to ensure that the payment gateway operates in the target country. On the other hand, if your customers are aged 50 and over, the probabilities of them knowing electronic currencies are poor. Therefore, you should not use online payment gateways that use only electronic currencies. We then encourage you to choose an online payment gateway that supports payment upon receipt.
- Cost and fees charged: The total cost of the online payment gateway must be taken into consideration, in addition to the monthly fees and fees charged for each payment made through the portal. Most online payment gateways have a 2.9% fee rate + 30 cents per payment. If your business primarily deals in transactions with high financial sums, be sure to search for payment gateways that provide services for specific monthly fees and low transaction fees.
- Security: When it comes to receiving online payments, the security of your online payment gateway should be your priority. Ensure that the portal you choose is compatible with PCI DSS Level 1. It guarantees you and your customer the privacy and protection of your sensitive financial information.
- Supporting different currencies: If you are doing business internationally, you need to make sure that your online payment gateway can handle payments in different currencies and from different countries. It is extremely important to allow your customers to pay in their currency. You must also check the value of the fees involved in transactions in foreign currencies.
- Allowed credit card types: The most commonly used credit cards are Visa, MasterCard, and Amex. All these card types are accepted by most payment gateways. However, if your customers usually pay you with other types of cards, then you need to make sure that your payment gateway supports that card.
Which payment gateway is best in the UAE and the Arab region?
Choosing the best payment gateway is one of the key steps in starting an online business. A payment gateway is a piece of software that permits the processing of payments for online purchases. By acting as a go-between for the customer and the business, it makes sure that the payment process is quick, safe, and easy.
In the UAE and the Arab world, e-commerce stores have access to a wide range of payment gateway choices. Each choice has its own own features, cost, and e-commerce platform connection. This article will examine some of the region's top payment gateways for internet businesses and the services they provide.
(1) Telr
Telr is a payment gateway service that works with all sizes of companies. They provide safe payment processing as well as tools for preventing fraud, such as 3D secure, fraud score, and real-time transaction tracking. Additionally, Telr gives users access to a variety of payment methods, such as bank transfers, digital wallets, and debit and credit cards. Several e-commerce platforms can use their payment gateway, and they provide an easy-to-use API for system integration. No startup fees, a monthly cost of AED 99, and a 2.49% transaction fee as well as 0.50 AED per transaction for debit and credit card payments are all part of Telr's straightforward pricing structure.
You can view telr’s pricing plan and payment information on their telr pricing page.
(2) PayTabs
Another payment gateway service provider that serves new and small businesses in the UAE and the rest of the region is PayTabs. PayTabs features a reliable payment gateway solution that offers PCI DSS compliance and secure payment processing. They provide a variety of payment methods, including bank transfers, digital wallets, and credit and debit cards. PayTabs offers streamlined e-commerce platform plugins that are user-friendly and enable smooth integration with most well-known systems. PayTabs features a reasonable pricing scheme with no startup costs.
PayTabs is gaining popularity in the Gulf countries, especially in the Kingdom of Saudi Arabia, the United Arab Emirates, Bahrain, Qatar and Kuwait. Its most unique feature is its support for more than 160 different international currencies and the safe and simple payment methods. It also provides an advanced system to prevent online store fraud with a professional customer service specialist in resolving legal disputes.
(3) 2Checkout
A provider of international payment gateways, 2Checkout serves companies in the UAE and the larger Arab world. They provide a user-friendly payment gateway that takes a variety of payment options, including bank transfers, credit and debit cards, digital wallets, and payment in numerous currencies. 2Checkout offers a hosted payment page for merchants without websites and has a great API for simple integration with e-commerce systems. There are no setup or monthly costs with 2Checkout, and there is a 3.5% transaction fee and 0.35$ per transaction and they have different pricing options.
(4) CCAvenue
CCAvenue is a provider of payment gateways for companies in the UAE and the larger Arab world. They provide user-friendly payment pages, secure payment processing, and fraud prevention safeguards. Many payment methods are supported by CCAvenue, including bank transfers, digital wallets, and credit and debit cards. They offer a point of sale (POS) system for in-person payments and have an accessible API for simple connection with e-commerce platforms. With no setup fees and a monthly charge of AED 200, CCAvenue features an affordable price structure. For payments made using credit and debit cards, the transaction fee is 3% with a 1AED fixed fee.
(5) stripe
Stripe is a popular payment gateway solution that appeals to businesses of all sizes in the UAE and beyond. They offer easy-to-use APIs that easily integrate with ecommerce platforms, and payment gateways offer secure payment processing with anti-fraud measures. Stripe supports multiple payment options, including credit and debit cards and digital wallets. Stripe offers transparent pricing with no setup or monthly fees and a transaction fee of 2.9% + 1AED per successful transaction. It also supports multiple currencies and gives businesses access to real-time transaction data.
(6) Amazon Payment Services
Amazon Payment Services is a payment gateway provider serving businesses in the United Arab Emirates and the wider Arab world. We offer an easy-to-use payment gateway with secure payment processing and anti-fraud measures. Amazon Payment Services supports multiple payment options including credit cards, debit cards, digital wallets, and bank transfers. They have robust APIs to integrate with ecommerce platforms and provide access to real-time transaction data. Amazon Payment Services has a transparent pricing structure, with 200 AED monthly fees, and a transaction fee of 2.80% + AED 1 per successful transaction.
(7) Vapulus
Vapulus online payment gateway was established in 2016 in Egypt. It was rated in February 2020 according to "Finance Online" as one of the 15 best online payment gateways in the world. It is also considered one of the most important online payment gateways in the United Arab Emirates, Egypt, and some Gulf countries.
Vapulus charges no transaction, monthly, cross-border, subscription, or any other hidden fees. Vapulus has an absolute zero fee mantra. It also has a PCI certification for data security standards. It offers its users a wide range of offers and discounts.
(8) Moyasar
Moyasar was established in Saudi Arabia. It is considered one of the most prominent online payment gateways in the MENA region. Therefore, a huge number of online stores in the Arab region and the Gulf region in particular use it.
Moyasar provides the ability to pay through various means such as credit cards, payment accounts, etc., in addition to invoicing and permanent reporting services, and easy connectivity through APIs with the ability to comply with a large number of administrative, accounting and financial systems.
(9) Paypal
Paypal is one of the most popular online payment gateways in the Arab region, and millions of people around the world depend on it, for its main advantage which is the ease of use. Also, it is one of the most secure and fast electronic payment transactions systems. In addition to that, its commission is low as it starts from 3.4 percent and charges $0.30 for every transaction.
When choosing a payment gateway for your ecommerce store, it's important to consider factors such as pricing, payment options, security standards, and user experience. You also need to consider the compatibility of your payment gateway with your ecommerce platform, and the currencies you plan to accept.
Choosing the right payment gateway for your ecommerce store is like choosing the right bank account for your personal finances: you need a bank that offers security, convenience, and a reasonable fee structure. Likewise, you need a payment gateway that offers secure payment processing, user-friendly features, and transparent pricing. An example is shown below.
In conclusion...
In summary, the payment gateways mentioned above are some of the best options for e-commerce businesses in the UAE and the wider Arab region. It offers secure payment processing, fraud protection, and multiple payment options.It also offers easy integration with e-commerce platforms and has transparent pricing. Choosing the right payment gateway for your business is critical to ensuring smooth and secure payment processing for your customers.
In this article, we have provided you with many online payment gateways that may l that may suit your customer and business type. Each gateway will allow you to collect payments from your customers equally. The real difference is in the side features provided, the overall experience of using the portal and how easy and fast it can be integrated into your online store.
