What is a Payment Gateway?

The front-end technology that reads payment cards and transfers client information to the merchant acquiring bank for processing is known as a payment gateway. In simpler terms, merchants engaged in eCommerce use this service to accept debit or credit card payments or even QR codes and selected cryptocurrencies. The flow, architecture, and other aspects will depend on the payment gateway service provider.

Here are some of the top payment gateways in the UAE, including the pros and cons of each.

1. Telr

Telr is one of the most popular and award-winning payment gateway service providers in the MENA region. It is proud to be the region's first PCI DDS (Payment Card Industry Data Security Standard) Level 1 certified company - promising secure transactions and protecting the card information of the card owner. As of writing, it currently supports more than 100 countries supporting payment levels from start-ups, SMEs, and eCommerce businesses.

Many businesses in the region would recommend using Telr. It supports popular shopping cart platforms like Shopify, Magento, and Woocommerce. It is convenient for users of the N.E.T. Banking network in India and SADAD banking network in Saudi Arabia - on top of the standard Visa, Mastercard, and American Express accounts - which is all accepted by Telr. The price for the entry-level plan with 0 to 20,000 AED monthly volume is 349 AED per month. Take note that the pricing will depend on monthly volume, which you will be charged a transaction fee for those above 20,000 AED.

2. Stripe

Launched in 2011, Stripe has two headquarters located in San Francisco and Dublin. It is also widely used in the UAE, being one of the popular payment gateways in the world. For developers, the company is proud to say that integration is very easy yet very powerful. They also consistently release new features to help improve the process and payment experience for customers.

One of the advantages of using Stripe is that it accepts more than 135 currencies worldwide and supports AliPay and WeChat Pay which is widely used in China. Some may see this as a disadvantage, but this service provider charges per transaction plus an additional 1% for using international cards. Instant payouts are available with a charge of 1% of the total amount. Instead of waiting for the appointed day, this option will transfer funds to your registered debit card right away.

3. PayPal

Paypal is popular worldwide for both consumers as a digital wallet and for businesses as an online payment gateway. It is an American multinational fintech (financial technology) company specializing in online payment systems. It was founded in California, USA in December 1998.

There is a huge percentage that your customer might also know or currently using Paypal. Businesses don't need a merchant account, which makes the onboarding process easier. As mentioned, since this is a popular payment gateway, it is the usual target for phishing and scam. Some business owners have also observed the poor customer service given by the company. Overall, this is the safest payment option yet some users may not prefer using it as their preferred payment type. In talking about charges, prices will depend on the payment option used.

4. PayFort (Amazon Payment Services)

PayFort is another leading provider of online payment gateway services. It is now known as Amazon Payment Services, following the acquisition of the eCommerce giant Amazon back in 2017. This is currently available in 8 countries in the MENA region as of writing, which includes the UAE.

Due to the presence in the region, shoppers could have more confidence to buy as it offers more local payments. In addition, it is used by many local brands that new business owners may have the confidence to use this payment gateway. If you would also like to review the business' performance, PayFort provides Spotlight and Payment Insights reports. Your customers could love the service this company provides - as there could be an option for a fully automated and secure service for payment installments. The lowest plan is the Standard Plan, which is 2.80% per transaction with an additional 1 AED charge.

5. CC Avenue

CCAvenue is said to be the first eCommerce and FinTech company listed on the Indian Stock Exchange. It has multiple offices in India, the Kingdom of Saudi Arabia (KSA), and the United Arab Emirates (UAE). Aside from being a digital payment platform, the company also offers Data Center Infrastructure and Software-as-a-Service (SaaS) platform. Their operation in the country is in collaboration with Mashreq Bank since 2014.

This payment gateway can be accepted in multiple channels such as website, phone, In-app, and much more. Though it can be accessed and adapted to any device, it provides a better payment experience to customers. In 2018, China's UnionPay is now accepted as online payment in the UAE and the first payment gateway in the country to do so. The company can also provide marketing tools that will help the business to improve sales while consistently reaching out to new customers. Transaction charge starts at 2% of the transaction and gets higher for international cards, especially with American Express.

It is a challenge to choose the right payment gateway for your business. Getting the service of a digital marketing agency can help decide what would be the best option based on your business and operations. Our experience in the region and technical expertise will surely help your website or app the hassle-free payment journey for your customers.