Payment gateway providers are required for online businesses to implement internet payments for consumers. In practice, this is an internal platform that allows secure payments, respectively money transfers from customers to the merchant account of the online business owner. Find out in this article some things about payment gateway providers in Dubai, how it works, and how you can implement them for your business. Our company incorporation agents in Dubai are at your disposal with help for the formalities involved.
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How does the payment gateway work?
First of all, you should know that a payment gateway is a cloud-based software that connects customers with the merchant account of a site that offers services for a fee. Here is some interesting information about payment gateways providers in Dubai:
- Online transactions are processed on a POS or point-of-sale basis when the consumer uses an online card.
- An on-site merchant account is required to allow users to pay online.
- Debit and credit cards issued by banks can be used.
- A merchant account is held by a bank. This means that the money from customers goes directly to the bank with the help of this type of account.
- The payment gateway provider analyzes the card-issuing bank as well as the existing funds and ensures that the payment does not exceed the initial amount.
- The encrypted information is sent to process the transaction.
- Card schemes approve the transaction, and the payment gateway forwards this information to the merchant account for finalization.
There are also 3 types of payment gateways, as follows:
- Hosted – After purchase, the payment information reaches the payment provider’s servers for processing.
- Redirect – The gateway directs the consumer to a payment processor.
- Self-hosted – financial transactions take place on the site’s servers.
Here is some information on how gateway providers work in Dubai. Those interested in providing such services need an electronic payment license. The formalities in this regard can be explained to you by our local agents in Dubai.
How to become a payment gateway provider in Dubai
Those interested in providing services like payment gateway providers must purchase the necessary software. You can host the gateway on a third-party server for complete protection, integrate a payment processor (bank or payment system), and implement a CMR (Customer Relationship Management) for maintaining customer data. It is also recommended to allow payment in multiple currencies if your site is addressed to international customers.
Those who want to apply for an electronic payment license to become a payment gateway provider should get in touch with our specialists.
The e-commerce sector in the UAE
The e-commerce sector in the UAE is extremely prolific among the countries that are part of the GCC (Gulf Cooperation Council). In the UAE, the percentage of internet and telephony users reaches almost 100%. Here are some other interesting statistics:
- Nearly USD 3.9 billion was total online sales in the UAE in 2020.
- E-commerce sales are expected to generate around USD 8 billion by 2025.
- In the UAE, over 58% of online shoppers prefer sites abroad.
- Government services have also expanded their online presence in recent years, offering the possibility of paying fees for various services on the Internet.
Want to know more about payment gateway providers in Dubai? We invite you to contact our company formation agents in Dubai and benefit from personalized offers.