Contactless payments: A touchy subject
dubai — The GCC has a lot of catching up to do when it comes to the e-commerce industry in the region, and opportunities abound in light of the UAE Government’s drive towards a cashless society.
While contactless payments are the latest focus area globally, the region, including the UAE, has some catching up to do, say experts. Experts highlighted the potential of the market on the first day of the two-day Seamless Middle East 2017 conference in Dubai.
Wael Alkhuzaei, technical account manager at BPC Banking Technologies, said that contactless payments are the latest buzzwords in the payment industry globally. Banks, concerned about the security of card based payments; cardholders, frustrated with having to
This year we have seen key advancements in the cashless payments landscape, with the launch of the Emirates Digital Wallet on Day One of the conference Joseph Ridley, GM of Seamless Middle East at Terrapinn
carry multiple cards; and merchants, worried about queues at their point of sales, are among the many reasons why the industry is moving toward contactless payment, he said.
“This year we have seen key advancements in the cashless payments landscape, with the launch of the Emirates Digital Wallet on Day One of the conference,” Joseph Ridley, GM of Seamless Middle East at Terrapinn, told Khaleej Times.
“There is a digitisation wave across the UAE. With e-commerce penetration currently at a lower level than markets in Europe and North America, it is important that the UAE merchants embrace e-commerce,” said Sirish Kumar, founder & chief executive officer of online payment gateway, Telr. “We are excited about UAE Smart Government’s drive towards a cashless society.”
At the event, Western Union announced a collaboration with the Arab Federation for e-Commerce, to jointly boost the uptake of eCommerce and digital payments in the Mena region.
“While online transactions are currently a very small part of overall payments in the region, building the robust infrastructure needed to stimulate and support e-commerce makes good economic sense. Governments are keen to bring in the efficiency, transparency and inclusion of a strong e-Commerce environment,” said Ambassador Mohamed Al Rabea, secretary general of the Council of Arab Economic Unity, the League of Arab States.
With its young population, high internet penetration and government commitment to building efficient payment systems, the Mena region has the potential for rapid growth in e-Commerce and digital payments and supporting new lifestyle habits including online shopping.According to Forrester, a research and advisory firm, growth in online cross-border retail is faster in Mena than in Europe and North America. The Middle East/Africa has the highest rate of online shoppers who buy across borders, with more than half of online shoppers buying internationally.