Fintech
FinTech LIVE Dubai: Insights into Digital Payments Trends in the GCC Region
Earlier this year in FinTech LIVE In Dubai, we spoke with Cem Soydemir, Head of Payments Go-To-Market, MEA, South & Central Asia at Swift, and Omer Shatzksy, Head of Risk & FinTech at Wix.com, about how digital payments are transforming the financial landscape in the GCC region.
Indeed, the advent of digital payments has transformed the way consumers and businesses interact in the modern economy.
Consumers demand instant payments and business benefits
On the consumer side, there is a growing demand for instant and frictionless payments, both domestically and internationally. “Customers have become very accustomed to instant payments, peer-to-peer payments, faster payments, less expensive payments, and predictable payments,” Cem notes.
This expectation has also extended to cross-border transactions, with consumers looking for transparency on fees and exchange rates, reliable delivery, and the ability to track payments.
The COVID-19 pandemic has accelerated the shift to digital, with a surge in online shopping and mobile payments. As Omer explains, “There’s been a huge surge in online commerce, online shopping because we didn’t have any other options.” This has made consumers more comfortable with digital wallets, buy-now-pay-later options, and personalized payment experiences.
For businesses, digital payments offer several benefits. Cem highlights how treasury management systems and APIs enable businesses to make bulk payments efficiently, reducing operational costs. Omer adds that digital payments enable businesses to be open 24/7, receive instant authorizations, and collect valuable customer data to personalize experiences.
But the push for convenience must be balanced with robust security measures. As Omer, who heads up risk management, explains: “I don’t want to be the gatekeeper, right? I want to be the customer’s advocate who gets them to buy, but I want to make sure the bad guys are eliminated.”
Technological advances that promote security in digital payments
Advances in technology are helping to achieve this balance. Two-factor authentication, biometric challenges, tokenization, and risk-based approaches allow companies to implement strong security while maintaining a seamless user experience for the majority of customers.
“Depending on the amount of the ticket, the location of the customer, the merchant I am billing, I am creating a personalized risk profile so that only the highest risk will encounter greater difficulties, I would say advanced, in the future,” explains Omer.
As digital payments continue to evolve, the industry faces the ongoing challenge of meeting consumers’ demand for speed and simplicity, while protecting them from fraud and data breaches.
Success will depend on leveraging new technologies and data analytics to create seamless yet secure payment experiences. In this way, companies can capitalize on the opportunities presented by the digital economy while safeguarding their operations and customers.
More news coming in 2024…
FinTech LIVE will host two more events in 2024: