middle east payment gateway

UAE Payment Gateway Industry Overview 1

Middle East Payment Gateway Industry

Version 1.0

-Jaladhi Kumar Bhatt

Global Payment Industry Trends


• Without payment gateway, your customers will not be able to purchase your product or services using their credit or debit card and that is everyone.

• So, if you are looking to make it easier for most customers to make purchase on your store, then a payment gateway is a must

(Source: Capgemini Analysis, 2012; “Goldman Sachs forecasts growth rate of global Ecommerce sales; Asia factors big,” Kent Allen, Pitney Bowes, 21 March 2011)

Continue…..



• The global payment gateway industry has grown at a CAGR of more than 20 percent during just 2010-2012

• Expected to grow at a rapid pace in the coming years driven by the recovery in private consumption and the rising popularity of mobile shopping.

• Driven by high growth in developing economies, global e-commerce sales grew by 17.9% in 2011 and are estimated to grow by 20.7% annually through 2013 to reach $963 billion

• Emerging trends are in the Mobile commerce and mobile shopping space.

• Major players include Authorize.Net, PayPal, Google Checkout, Amazon Payment, Dwolla, Stripe, Braintree, WePay, 2CheckOut etc Continue…..



(Source: Capgemini Analysis, 2012; “Goldman Sachs forecasts growth rate of global Ecommerce sales; Asia factors big,” Kent Allen, Pitney Bowes, 21 March 2011)

PayPal Pro

Authorize.net

Stripe

eWay

Braintree

SagePay

FirstData

0 10 20 30 40 50 60

PayPal Pro; 56.2

Authorize.net; 20.2

Stripe; 6

eWay; 4.6

Braintree; 3.6

SagePay; 2.8

FirstData; 1.6

Sales

Sales

Global Payment Gateway Overall Ranking


PayPal Pro

Authorize.net

Stripe

eWay

Braintree

SagePay

FirstData

0 10 20 30 40 50 60

PayPal Pro; 56.2

Authorize.net; 20.2

Stripe; 6

eWay; 4.6

Braintree; 3.6

SagePay; 2.8

FirstData; 1.6Sales

Sales

Differentiated Middle East Payment Method


Most online payment gateways have issues running in the Middle East like PayPal etc… UAE industry will not accept all payment gateways.

The biggest problem in UAE is the ability to accept credit cards on your website. Compared to the western counterparts such as Stripe, WePay, Google Checkout, PayPal Pro, Amazon payments... etc. the ability to accept credit cards on your website is far more tedious & expensive. Here are some of the top reasons…

Holding stock / Import requirements

If you are importing products from outside the country and selling them online to the UAE market, the business has to be registered with the relevant emirate’s ports and customs authority, and receive an importer’s code. A customs duty (often 5%) is applicable to goods being imported. Continue…..

Differentiated Middle East Payment Method


Businesses established within a free zone are exempt from customs duties if they are selling their products/services within the free zone or outside the country.

Moreover, the cost of holding stock can be an added cost as you may have to pay for storage and warehousing.

Online Payment Gateway integration:

Payment gateways which are local solutions that integrate with a merchant bank account here in the UAE need you to be a legitimate business and only after an initial assessment will they agree to work with you. They charge a setup fee in the range of AED 1000 – AED 7000 and also have fixed charges on a yearly basis. The standard rate percentage per transaction and a fixed fee per transaction is also applicable and just about everybody is required to pay a deposit of anything over AED 35,000.

Payment Gateway Players in UAE Market



Solutions


We have searched through many payment gateway options in U.A.E. To make the most informed decision on what to use for our project. We found following listed payment gateways suggestions that we found most suitable to integrate it with.

When you redirect your users to a hosted payment page on the servers of the payment gateway itself, it’s called off site payments. This means that the end-user is redirected to a separate domain which may or may not include the branding and structure of the payment processor and on a successful payment is redirected back to the website.

Some options of payment processors that would work and enable with UAE as merchandised solution:

Solutions


We have searched through many payment gateway options in U.A.E. To make the most informed decision on what to use for our project. We found following listed payment gateways suggestions that we found most suitable to integrate it with.

When you redirect your users to a hosted payment page on the servers of the payment gateway itself, it’s called off site payments. This means that the end-user is redirected to a separate domain which may or may not include the branding and structure of the payment processor and on a successful payment is redirected back to the website.

Some options of payment processors that would work and enable with UAE as merchandised solution:

Continue…..

Comparison


PAYFORT: PAYFORT is solid choice if you are looking for a payment gateway. With its transaction cost at 3.0% + AED 2 it is right in the middle of the pack when comparedINNOVATE PAYMENTS: If you like choices, then this is the one on top of list to be considered. It has 3 plans with varying fees and transaction costs. Innovate Payment is mainly focused on the Gulf region which is why it only accepts mainly the Gulf currencies.NETWORK INTERNATIONAL: Network international is one of the more established companies having been around since 1994. It offers good rates at 2.5% + AED 1 per transaction but requires a huge security deposit.2CHECKOUT: 2Checkout has high transaction costs at 5.5% + $0.45 per transaction but no setup nor recurring fees. It accepts 20+ currencies. That is a good option if you are looking to sell globally

Conclusion


On the basis of provided Solutions, Gateway is suggesting solution depending on the requirement. E.g. For new setup companies 2CHECKOUT would be the best suited solution as it has not setup fees. Once you have proven yourself successful in market, company may choose and upgrade with PAYFORT integration.


Thank You

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