A Guide to Payment Gateway In GCC for Your Online Business


A Guide to Payment Gateway In GCC for Your Online Business

Safeguarding against online theft, data bridge, identity fraud, and other online security threat is essential for any business in the eCommerce space. The success of any online eCommerce platform is usually measured by the efforts and actions taken against all business risks and customer data security.

Considering the present needs of online business, no successful business in that domain can effectively operate its services, maximize sales flow, and secure all online transactions without leveraging a secure, reputable, and integrated payment gateway solution.

With that in mind identifying a reliable, easy-to-use payment gateway that is effective for your online business can be challenging. Choosing the best payment solution for your online store could also throw you in a state of dilemma.

To help businesses make the right choice for online payment gateways, here is an overview of how payment solutions work and different options for which merchants in the GCC industry could settle.

The Growth Of Ecommerce Business In The GCC

When eCommerce took over the marketplace, the GCC state were slow starters as the traditional ways of buying goods and services were the norm. The sector only contributed about 0.4% to the member state’s GDP in 2015. However, over the last couple of years, retailers in the gulf stream states have embraced the online way of doing business.

They generated a revenue of $24bn in 2021 against the $5bn in 2015, while the revenue forecast is expected to be up to $50bn by 2025.

Based on some market research analysis from 3 million users in 2021, the region’s top five e-commerce websites have pulled over 21 million users in the last couple of years.

Besides, the average number of eCommerce websites has tripled in numbers while customers find it comfortable making purchases from the comfort of their homes. Popular items bought over the online marketplace platforms are primarily fashion and beauty products. The volume of e-commerce transactions in the GCC region has exponentially increased, given a sharp rise in the demand for payment gateway systems.

Overview Of A Payment Gateway?

In general terms, a payment gateway refers to services that enable online customers to make payments for products and services on e-business platforms, online retail stores, and physical business locations through credit or debit cards.

The payment process is similar and less cumbersome, whether you make purchases on the internet or in a physical store. All payments are subjected to security checks from the business owner’s bank through every payment gateway system.

The Role Of Payment Gateways In Business

The primary function of any global payment gateway is to either authorize or deny any transaction occurring between the merchants and the customer’s bank.

With this being the sole function of payment gateways, it would be safe to say payment gateway solutions are the essential aspect of all GCC eCommerce activities. It contributes to safe and successful transactions on the eCommerce platforms.

The overwhelming responsibility of merchants is to provide a secure payment gateway trusted and reliable by their customers. If any merchant’s online payment gateway loses the users’ trust, the repercussion would be huge on the success of all the transactions.


Types Of Payment Gateways

There are three reputable payment gateway types which are

  1.     Redirect: This payment gateways system guides and directs customers to a third-party payment platform where payment can be made.
  2.     Checkout On-Site and Payment Offsite:This payment system enables the users to check out on the merchant website, but payment for goods and services is processed on another landing page of the merchant website. For example, stripe platform.
  3.     On-Site payment:The customers’ payment and checkout activities are performed through the Marchant’s payment system.


Payment Gateways, Payment Processors, And Payment Aggregators What’s the Difference

You might have often come across similar terms regarding online payment services, while you presume they all meant the same thing. Here is the different breakdown;

Payment Gateway: This interface software service collects card details to the payment platform whenever users are ready to pay for their goods and services.

Payment Processor: Here is a backend solution that securely transfers the charges involved in every transaction from the customer’s bank to the Marchant’s bank.

Payment Aggregator: This institution handles payment gateway solutions and payment processing activities.


How a Payment Gateway Works

The payment gateway processing only takes one or two minutes but initiates different steps like;

  • The customer uses their card (debit or credit) through the merchant’s physical credit card reader or online platform.
  • The payment gateway confirms the card issuer network and guides the transactions through the appropriate payment switch.
  • The payment switch directs the request to the user’s bank and authenticates the transaction information to the appropriate card network.
  • The bank validates the transaction against fraudulent activities, determines if there are enough funds in the account, and approves the product or service purchase.
  • The bank is at liberty to approve or decline any transaction that doesn’t meet all requirements through the credit card network.


Selecting The Best Payment Gateway in GCC, UAESaudi Arabia, Qatar, Oman, Kuwait & Bahrain

Choosing the best payment gateway solution for your eCommerce business is crucial to ensure success and customer trust. The size of your organization, the services you offer, and your customer size will effectively determine the best payment gateway for your business in UAE, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain.

Some factors to be considered when choosing a payment gateway include

  • Customer Support
  • User Interface
  • Security
  • Set Up Fee
  • Charges
  • Payment Methods Support
  • Relationship Between Bank and Payment Gateway

One of the most critical factors a customer considers before using any payment system is the security that their payment details are secure. This is one of the challenges businesses face as cybercriminals are increasing daily.

Here are some tips to help you stay ahead of any security challenges;

  • Ensure your business confirms with the Payment Card Industry compliant. This data security standard organization sets some crucial rules to protect customers’ data.
  • Choose a reputable and reliable payment gateway platform that updates its payment system’s security.

PayCaps is one of the best payment gateway in UAE & GCC simplifying online payments for eCommerce stores, Online Businesses, Websites & Apps.