As per a recent Visa-DED security survey that examined consumer perception of digital payments and online shopping, 66 per cent of respondents said they trust online shopping and 70 per cent trust online payments. “The possibilities for merchants, financial institutions and consumers are enormous, and it is vital, therefore, that we continue to build consumers’ trust and improve the infrastructure of online payments so that consumers can benefit from more seamless, rewarding and secure shopping experiences,” says Khan.
The UAE shopper is among the top spenders online. In the wider Middle East, North Africa and South Asia (MENASA) region, the UAE represents the biggest annual spend per online shopper at $1,648, with growth projected through 2020 at 29.6 per cent. This is supported by Visa transaction data, which shows that the UAE continues to maintain a healthy lead in average transaction size compared to both emerging and mature e-commerce markets. The transaction size in the UAE averages $144 in 2018-19, compared to $79 in mature markets and $26 in emerging markets.
7. Going cashless
At first glance, the UAE looks to be a long way off with 75 per cent of all transactions still made using cash, but the country has already laid down strong foundations to go digital. The UAE ranks foremost among regional economies most rapidly moving away from cash. Card payments continue to grow in the UAE, recorded at 70 per cent in 2018, compared to 68 per cent in 2017, according to Visa’s report. During the same period, cash-on-delivery dropped to 15 per cent in 2018 from 22 per cent in 2017.
8. Improved logistics
Logistics can be a game-changer for any e-commerce business. Luckily, the UAE is a focal point for distribution, and its low logistics costs and superb infrastructure make it an ideal place for e-commerce to thrive. It enjoys an advantage as a major global trans-shipment hub with the port of Jebel Ali and Dubai International Airport (the sixth busiest cargo airport in the world) providing a high standard of logistics, according to the Visa report.
9. Increased security
Striking a balance between frictionless customer experience and strong security is another important aspect. Banks and payment providers in the UAE such as Visa are working to enhance card security for online transactions, adding an additional layer of security to the process. Online retailers can partner with payment processors to adopt protocols such as Verified by Visa, which works by sending the shopper a one-time-password to ensure payments are made by the rightful owner of the Visa account.
10. Growing digital shopping opportunities
On the digital merchant side, we have seen growth both domestically and internationally, including a number of digital startups with world-class shopping experiences for in-app and mobile. At the same time, we have also seen traditional retailers across all sectors go digital and global brands have opened delivery services to the UAE, making it easier for consumers to order and receive goods seamlessly.
— Global payments technology Visa works to enable consumers, businesses, issuers and governments
This content comes from Reach by Gulf News, which is the branded content team of GN Media.