PayFort Develops New Products To Improve For MENA eCommerce

By Chanel Smith, EMEA Editor (@PYMNTS_EMEA)

One of Dubai’s newest payment gateway companies, PayFort, is launching new options to help more consumers to start shopping online.

Online merchants in the Middle East are struggling to increase market growth because of the region’s lack of payment options. UAE-based PayFort, launched in June of this year and a spin off of CashU, uses a business-to-consumer approach for online payments, reported Wamda. The company believes that building trust in online transactions will be the key for mass adoption of eCommerce, and is aiming to drastically improve security to help build consumer and merchant confidence. Most of PayFort’s transactions are made with a credit card, but the company will soon be launching three new products into the market to shape eCommerce momentum.

Pay At Home

In attempt to make online transactions more secure and reliable for both the merchant and consumer, PayFort is developing an option that is a flipped variation of Cash On Delivery (COD). Traditional COD enables the shopper to order a product without having to make an immediate payment. Clicking the COD option means payment happens upon home delivery, which means the retailer must deliver a product before a guaranteed payment. Customers can turn away items at the door, which could mean a wasted trip for sellers.

PayFort designed,”Pay At Home,” which Managing Director at PayFort refers to as “anti-COD.” The shopper can choose a product or voucher online, and the package will be sent to their house. The delivery courier will arrive at the consumer’s house to collect the payment, and leave the shopper with a confirmation receipt. Only after payment has been accepted will the product be shipped through the company’s standard shipping method.  

PayFort believes this option will be useful for retailers selling online, or for companies conducting cross-border sales. Pay At Home aims to reduce risk and high return rates.

Card On Delivery

PayFort also indicated the imminent launch of a service called, “Card On Delivery.” This program aims to serve customers who are wary of entering bankcard information online, or have banks that do not allow online payments. Card On Delivery enables customers to pay via credit card upon courier arrival, akin to the process of Pay At Home, except with card payments.

Mobile Payments

PayFort is currently working with various telecoms in different countries across the Middle East, to develop a mobile payment process that allows shoppers to pay for products with their mobile phones.  PayFort reported the initiative began in Kuwait, and said the service is presently still in its pilot phase. This method will use the customer’s data plan, and will operate on either a prepaid or postpaid system. 

PayFort believes this option is valuable for consumers who frequently buy smaller value products online. Mobile payments are limited to 150 KWD for the sake of reducing the risk of fraud.

PayFort’s new products aim to help companies and startups in the Middle East improve growth and allow customers to feel more comfortable with online transactions. The payment gateway market in the region is quickly filling up, but PayFort claims it won’t be directly competing with shipping and logistics payment companies. PayFort is focusing on payment options that occur before customers collect the purchase items. 

To read more at Wamda click here.