Back in 2017, Go-Gulf.ae reported that cash on delivery (COD) historically accounted for 64% of all eCommerce orders.However, as reported in March 2020, 73% of respondents in the Middle East now favour paying by credit card, with 84% stating they now consider digital payments as highly secure over cash.
Similarly, in the United Arab Emirates eCommerce Landscape 2020 Report, Dubai Economy and Visa have confirmed that “the UAE eCommerce sector is expected to see continued growth as more UAE consumers demand online payment options and merchants increasingly recognise the need for an online presence during the coronavirus pandemic.” The report also states that while UAE consumers currently prefer to pay using credit cards, the use of debit cards to shop online has increased by more than 7% between 2018 and 2020, pointing to a higher degree of trust in the transaction process that is reflective of a maturing market. Many retailers have now shifted to charging a fee should a customer wish to use a cash on delivery option.
Director General at Dubai Economy, Sami Al Qamzi, commented: “cashless payments and eCommerce are definitely on a faster trajectory than anticipated, and we look to translate this unprecedented growth into an opportunity for businesses of any size to establish and enhance their presence online.”
Marcello Baricordi, Visa’s General Manager for Middle East and North Africa, said: “we’ve seen a number of adoption barriers reduce as the demand for eCommerce and contactless commerce skyrocketed during the lockdown. We call these habit forming behaviours as more consumers and merchants have now experienced the security, convenience and range of online commerce and we anticipate this trend to continue post-pandemic. Because of this, businesses that work to adapt to this new world of eCommerce and digital payments have the best chance at both recovery and thriving. All merchants regardless of size must now think beyond just adapting and focus on their medium and long term strategy”.
Why should retailers make the switch to online payments over COD?
Coronavirus has certainly pushed consumers even further towards digitised payments in order to minimise the risk of contamination when handling cash. However, 48% of consumers surveyed in the UAE have also reported that they will “continue to opt more for paying online with card or digital wallet over COD”.
Still not convinced? Here’s how online payments could enhance your business operations:
By accepting online payments, you open up your business for subscription and repeat payments meaning, as a merchant, you can enable recurring billing features through the payment providers. This can increase conversion rates as subscriptions translate into fewer required actions to make or accept a payment, for the shopper and the seller.
The most commonly used payment gateways in the UAE are Checkout.com and Payfort; both of which Visualsoft are proud to integrate with. Similarly, many retailers also offer a pay by Paypal option which is widely accepted by shoppers who are happy to checkout in USD!
Want to find out more about the other payment options available?
Visit our Feature Hub for more information, give us a call on +971 56964 2052 or simply fill out the form. We can’t wait to hear from you!