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scams and frauds happening around, are online payments actually secure? Ashraf Atia, Chief Operating Officer, Zbooni says: “When it comes to credit cards here in the UAE, the level of frauds is significantly lower than the western countries. The reason for that is the 3D secure aspect which uses the concept of an OTP or a One Time Password that comes as a text message from the bank when you use your card online before the transaction is completed. This pushes the entire liability on the card holder as it needs for the card and the phone to be in the hand of the user. Hence there cannot be a claim of the card not being there or any other fraud as the transaction cannot be done without the One Time Password which comes on the user’s phone.” In the western countries, the frauds are higher because they feel that this fail-safe of 3D secure would slow down their commerce and that the fraud insurance would protect them from these. Moreover, the inconvenience of traditional methods of payment outdoes its benefits. Neeru says: “I have no idea why people still use cheques. Honestly, after I started using online payments, collecting and depositing cheques is a pain.” Ashraf adds to it saying: “If I have to issue a check to someone, I need it to be signed by the person designated to do that. Then I have to physically give the check to the other person. Even after all this, there is no guarantee that the check is worth the money mentioned as the fund backing the check and the amount it says may not be there. Isn’t it better that I pay by credit card and there is a guarantee that the bank is going to pay you regardless of anything? It is also more convenient to both parties involved in the transaction, hence the traditional side kind of goes down because it is simply a better way to do for everyone.”
Ashraf Atia Chief Commercial Officer and Co-Founder, Zbooni
However, Punit agrees that changing consumer mindset and habits to adapt to digital payments is a key challenge for payment gateway service providers like them. “For example, the UAE Ministry of Economy has estimated that e-commerce constitutes just 10% of total sales in the UAE. Further, a joint survey undertaken by Google and consultants Bain & Co, also found that 44% of UAE consumers prefer cash-on-delivery when buying online because of a reluctancy to pay online. So, educating and creating awareness amongst the end consumer is a pain point in our industry. Other challenges faced by global payment providers are hurdles with local regulators (restricted LOBs, cross-border transactions, local entity requirements, etc.).”
creasingly becoming popular and the more swiftly businessmen adapt to the new trends, it would not only save them time but money too. In terms of the future, with the much Expo2020 coming up and with the recently launched Digital E-commerce strategy, Punit feels that this would be a great opportunity to tell the world that Dubai is open to Global e-commerce. “With Mastercard as Dubai Expo 2020 Official Payment Technology Partner, facial, fingerprint recognition payment systems and seamless cashless payments are some of what the 25 million expected visitors can look forward to. Expo2020 is likely to introduce new technologies such as microchip payments and AI-integrated payments.”
In conclusion, digital payments are in-
January 2020 / SMARTSMB