3 factors which have led to E-commerce growth in the Middle East
According to a research conducted by Frost & Sullivan, E-commerce is a form of business that will be valued at $10 billion in 2018 in the UAE. The current valuation of E-commerce business in the UAE is $2.5 billion and the proliferation of that business in that region will state that there are several factors responsible for the growth of online businesses. Since technological and financial innovations are continuing to bring in newer methods of performing digital transactions with improvised security measures, there is no doubt that E-commerce will take the Middle Eastern regions by storm in the next coming years. Here are several factors that are responsible for this growth.
1. Continuous security revisions
E-commerce businesses in the Middle East cannot afford to settle with an unknown and unreliable payment gateway company as it is the very first ingredient that will spell disaster for the business owner. Reliable payment gateways comply with PCI DSS (Payment card industry data security standards). These standards are constantly being revised in order to hold off online theft; something that has gained significant momentum and sophistication in these past couple of years. Failure to choose a reliable payment gateway will put the business owners’ card and the customers’ card details at a very high risk and if any unforeseen consequences decide to take place when the user is performing a transaction, it will automatically discourage consumers from visiting that particular E-commerce store in the future.
2. Performing mobile transactions on the go
Previously, smartphones running 3G and 4G LTE modems came with an unreasonably high price tag, allowing only the upper market segments to make online mobile transactions. Realizing the true worth of the lower markets, mobile chipset manufacturers such as Qualcomm and MediaTek are striving to bring low cost chipsets to mobile devices that will possess their own in built 4G LTE modems in order to expedite the online transaction process in the Middle East. Qualcomm’s Snapdragon 210 and MediaTek’s MT6595 chipset will be assimilated in to low cost mobile devices that apart from providing impressive processing performance and energy efficiency, will allow users to connect to LTE mobile networks and make their transactions without spending an arm and a leg to purchase a smartphone. Not only this, Intel is currently working on a 3G modem that will become compatible in size with future wearables such as smartwatches for flexible online transactions. These modems will provide twice the transmission power of current 3G modems and will not lose their signal intensity in dense concrete environments such as subways.
3. Flexible options for payment
In addition to providing consumers with stacks of security, one primary factor that influences E-commerce growth is providing flexible payment and delivery options for consumers. A small percentage of consumers might already have been acclimatized to the secure environment of executing online transactions but there is still a large percentage of those consumers who still fear of having their card details compromised. So, a way around this temporary obstacle would be to incorporate several methods of payment options, with cash on delivery or COD to be the one that instills the necessary confidence boost in consumers. Slowly making them susceptible to perform online transactions by entering their card details will require more time than making such a thing possible overnight, but with reliable payment gateways improving their security thanks to continuous security revisions, making online transactions in a high frequency is just around the corner.