The power of technology to enable commerce
April 20, 2021
5 minutes to read
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The success stories of SMEs in the UAE, which account for 94% of all registered businesses in the country, are part of the overall economic success of the country. However, the restrictions of the COVID-19 crisis have called this growth into question.
As cash transactions disappeared, the rush to connect online has shown the power of technology as a catalyst for commerce. Thus, to remain competitive, SMEs now know that be well activated in the digital space is essential.
Those who made the transition were able to quickly position themselves to take advantage of mobile commerce (m-commerce), which is growing rapidly across the digital shopping industry. Mobile payment is crucial and it’s not just about the web browser anymore, as m-commerce has spread to almost every device and channel available today. However, an associated reality is that large merchants have dramatically improved the customer experience with card withdrawals and the use of high security solutions, such as tokenization which has set new standards in the industry’s ability to manage. the risks associated with fraud.
But in 2021, consumers want power shop in an app, and the fewer clicks, the better. Research shows that the longer the checkout process, the more likely the customer is to abandon their cart. This hits SMEs hard – not only is it a lost sale, but failed purchase leaves the consumer less likely to come back to the merchant himself.
TO MasterCard, we help SMBs provide their customers with a convenient and secure payment experience to reduce cart abandonment and increase sales conversions.
The solution to going through checkout with minimal friction came from collaborations and partnerships between financial service providers, and Mastercard Click to Pay technology is an innovative example of what can be achieved. Click to Pay, a one-click payment solution, completely eliminates the need for a consumer to repeatedly add their card details when visiting new websites or e-commerce platforms that offer Click to Pay. More importantly, SMEs can use it for mobile commerce transactions. A notable advantage of Click to Pay is that the user can easily pay with the same credentials from multiple devices while using different operating systems.
It is also secure thanks to the one-time password (OTP) solution. the customers no longer need to enter their card details, name and address – instead, they log into their Click to Pay account and receive an SMS with an OTP to process and validate the transaction. For SMEs, this is invaluable, especially those who trade through platforms like Amazon which often have a high proportion of abandoned carts. However, it is still essential to help SMEs understand how to ensure a frictionless m-commerce experience for their customers and prepare for constant change as the digital e-commerce ecosystem evolves.
In the United Arab Emirates, efforts are underway to ensure that no small business is left behind in the transition to a digital economy. The government is committed to meeting the aspirations of business owners by introducing regulations that cultivate a culture of entrepreneurship and equipping them with the tools and infrastructure to easily conduct their business in a digitally-driven ecosystem.
the Dubai Chamber of Commerce spear Business connection in April 2020 as a platform designed to help Dubai businesses overcome the economic fallout from the spread of the virus with information, financial and educational resources, and economic perspectives related to existing challenges and ways to deal.
Government initiatives like these are complemented by private sector solutions to prepare SMEs for success. For example, Mastercard’s “SME-in-a-Box” solution was created to help small business owners and micro-merchants expand their customer base through digital platforms. It provides SMBs with tools accessible via smartphones that ensure businesses can move online with ease and simplicity.
This facility is precisely what is needed as entrepreneurs seek to grow in 2021 and beyond. In light of the pandemic, consumers are even more sensitive to the digital commerce environment. The ease with which products can be searched and the safety and security with which people can interact on different platforms allow them to find the most competitive offers. So when that deal is found, the payment experience should be simple, fast and, above all, secure.
This last requirement is all the more crucial today as cybercrime has become more and more complex. SMEs and entrepreneurs those new to e-commerce need to understand the risks and what they look like. In partnership with the Global Cyber Alliance, Mastercard offers a free online toolkit to advise and guide small businesses by deploying its advanced patented tokenization technology that secures transactions.
With that peace of mind and a very enjoyable customer journey, SMEs that have navigated the new post-COVID-19 world of digital commerce can hope to reap the rewards as our economies begin to grow again.