If you are setting up an e-commerce business in the UAE, you are probably grappling with the critical question: which payment gateway (PG) should I use? It’s a question I hear most often within the community. Getting this right is fundamental to ensuring your transactions are secure and seamless. Here is my breakdown of the key factors you need to consider.

1. Regulation and Understanding Checkout Flow

The most reassuring piece of information I can offer you is that every payment gateway used in the UAE is Central Bank Approved. This means that the UAE Central Bank does not permit the use of any unapproved PG here. Therefore, you can proceed confidently with any reputable provider you find through a standard search.

However, not all PGs function identically regarding the checkout experience. This is the difference you must understand:

• Native/Seamless Checkout: This option allows the customer to complete the purchase within your website or app. Stripe offers this native checkout. If you are using Shopify, Stripe allows the customer to check out directly within Shopify’s one-page checkout.

• Redirection Checkout: With this method, the customer is directed to the PG’s external page to complete the payment and then returns to your website. I’ve seen platforms like Nomod use this method.

2. Transaction Charges and Payout Speeds

When you first launch your business, expect transaction charges to be higher. Typically, prices start at 2.4% or 2.5% and upwards.

For instance, Tap currently offers 2.4%. Charges for platforms like Stripe can go above a specific volume threshold (referenced as 3k). Since new companies often lack previous online experience, they are generally quoted these higher initial prices. My advice is to start, build transaction volume, and then negotiate rates with the provider later.

Regarding payouts, most PGs usually transfer funds to your account within three days, or a maximum of seven days. I recently spoke with Nomod.com about their platform, and they currently offer an advantageous two-day payment schedule.

3. Essential Feature: Supporting Local Quick Payments

To maximize conversions in Dubai, your PG must support the most frequently used quick checkout options:

• Apple Pay

• Google Pay

When I select a payment gateway, I make sure it supports these options to ensure a fast checkout process.

4. Integrating Split Payments (BNPL)

Split payments are highly utilized in Dubai, especially for high-value purchases. Services like Tabby and Tamara are hugely popular.

Some PGs, such as Payfort, already have Tabby and Tamara integrated. This is extremely convenient because it removes the need to set up and manage separate accounts for Tabby and Tamara. Depending on the customer’s payment history, these services can offer zero-interest payment plans for up to six months, or even twelve months.

5. Why I Strongly Recommend Stripe

If you ask for my personal suggestion, despite the potentially higher transaction charges, I still use and believe Stripe is the best platform for e-commerce in the UAE.

Here’s why I advocate for it:

1. Speedy Activation: All processes are conducted online. After providing documentation—your license, bank account details, website, and the owner’s passport—Stripe usually activates the gateway within 24 hours, or sometimes up to 48 hours. I’ve recently set this up for three or four websites, and the process was consistently fast.

2. Reliability: Stripe’s payments are proper and regular. I have never faced issues with abandoned checkouts or payment problems with Stripe.

3. Handling International Cards: This is the most crucial factor in the UAE. Because people from every country live here, many local PGs struggle to process international cards, causing transactions to fail. I have never faced an incomplete international transaction with Stripe.

4. Subscription Models: If your business is subscription-based, Stripe offers excellent options and is the best product for you.

6. The Necessity of Delivery Payment Options Due to Fraud

You must be aware of the trust deficit in the market. Recently, customers have become very careful when purchasing from new websites or through Instagram/Facebook ads. There are many fraudulent websites that run Meta Ads offering huge discounts (50% or 75% off) on fast-moving products like food, clothing, or fake RTA fine reductions. People have lost substantial amounts of cash; a customer I met lost around 4,000 AED purchasing electronic products online.

Because of this widespread fraud, when starting a new website, I find it mandatory to offer delivery payment options:

• Cash On Delivery (COD)

• Card On Delivery (CARD OD)

Initially, I only offered COD, but customers started asking if they could pay by card upon delivery, so I added CARD OD. If you don't offer these options, the conversion rate for new customers is highly likely to drop.

Summary: While providers like Tap and Nomod offer competitive transaction rates and fast payouts, Stripe provides the reliability and unparalleled support for international cards that is essential for long-term success in the UAE E-commerce market. Always remember to secure trust by providing COD and CARD OD options.

This post is supported by FixMyStore.com - experts in optimizing Shopify stores for speed, conversion, and performance.

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