Online Merchant Checkout Innovation Report

To Boost Conversion, UAE Merchants Want Simpler, Faster Checkout From PSPs

January 2025

UAE merchants demand seamless checkout experiences, prioritizing quick, frictionless payments to meet customer expectations and increase conversions.

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    PYMNTS Intelligence surveyed 300 middle-market eCommerce merchants across five countries — Australia, Brazil, the United Arab Emirates, the United Kingdom and the United States — to explore the role of technology in user experience during checkout. The study revealed that most middle-market eCommerce businesses struggle with user experience more during checkout than with the back end of payment processing. Accordingly, merchants indicate a strong demand for technologies that enhance the user experience during checkout, particularly one-click technologies.

    This series of data briefs examines how merchants in each country view the role of payment service providers (PSPs) in the user experience during checkout. This edition looks at the United Arab Emirates, a country where many eCommerce merchants struggle with user experience during checkout.

    As merchants worldwide look to innovate their checkout experiences, those in the UAE demand features that create simplicity and efficiency, both internally and for their customers. PSPs are evaluated on how seamlessly they integrate with merchants’ operations and enhance consumer interactions. Tools such as one-click payments and card-on-file technology that reduce friction at checkout are among UAE merchants’ most requested updates.

    These are just some of the findings in “The Role of PSPs in the Checkout Experience: UAE Edition,” a PYMNTS Intelligence and Mastercard collaboration.

    UAE Merchants’ Requests for PSP Updates Stem From Need to Boost Conversion

    Turning shoppers into buyers is top-of-mind for UAE merchants when seeking new features.

    UAE merchants’ requests for updated technologies from their PSPs are motivated by many factors. Yet the need to drive conversion emerges as the most common driver of demand, data shows.

    Nearly two-thirds (64%) of UAE merchants able to request additional features from their PSPs cited their desire to boost conversion as a key factor in deciding which features and functions to integrate. No greater share said the same of any other factor. Additionally, 23% cited the desire to boost conversion as the single most important reason to request technology from PSPs, which also leads all other reasons. This makes sense, given that the features they most often request are those that shorten the path to purchasing.

    Notably, UAE merchants are more likely than those in other countries to list price as a key factor. Notably, 62% cited price as an important concern when deciding what technologies to integrate — more than the 50% across the five-country sample that said the same.

    Easy integration with existing systems is another concern for merchants in the country. We find that 56% of these merchants able to request additional PSP features cite ease of integrating with current systems as important. In contrast, just 48% of merchants across all countries studied said the same.

    Conversely, UAE merchants are comparatively less concerned about security, with just one-third citing reducing fraud as a key factor. This is well below the 43% of merchants across the entire sample that saw this as important.

    UAE Merchants Choose PSPs Based on Ease of Implementation

    Merchants in the UAE see low-effort experiences as key benefits of their preferred PSP.

    When considering the advantages of their current PSP, merchants in the UAE are likely to value easy implementation. In fact, more UAE merchants named this advantage than any other factor, at 62%. Merchants in the UAE were also more likely than those in any other country to value this, where wide availability stood out as the top factor.

    Furthermore, UAE merchants seek ease not only in implementation but also in day-to-day usage. The next most commonly cited PSP benefit among UAE merchants is the ease of working with their PSP. We find that 56% state that their preferred PSP is easy to work with.

    Notably, however, another factor emerges as the advantage merchants in the country most commonly cite as most important. Nearly one-third of merchants in the country cite the widespread availability of their preferred PSP as the top benefit. This is greater than any other factor cited and is nearly three times the 12% that cited ease of implementation as most important.

    These findings reveal a nuanced perspective on UAE merchants’ PSP preferences. While ease of implementation and usability are highly valued, they are not the dominant factor in driving overall satisfaction. Instead, the widespread availability of their PSP emerges as the most crucial benefit. This suggests accessibility and broad compatibility play a decisive role in shaping merchant choices, reflecting the importance of scalability and network effects in a competitive global market.

    7 in 10 UAE Merchants That Can Request PSP Updates Do So

    When they can seek out the latest payment technology, UAE merchants tend to take advantage.

    Currently, most PSPs around the world provide merchants with the option to request changes. Across all merchants surveyed, 80% reported that their PSP offers them the option to request the addition of specific features and functions. In the UAE, merchants are slightly less likely to be able to, with 78% saying they can.

    PSPs therein may be roughly aligned with global norms in this respect, but they still lag behind world leaders. The fact that 96% of merchants in the U.K. can request updates suggests that considerable room for growth remains in the UAE.

    Most merchants ultimately ask for technology upgrades. As 54% of all UAE merchants have requested additional technologies from their PSP, the country is roughly on par with the U.S. and Brazil. However, that figure is notably lower than the three-quarters of U.K. merchants that have done the same.

    While UAE PSPs are broadly aligned with global standards, the stark contrast with markets like the U.K. reveals untapped potential for PSPs in the UAE to better empower merchants by offering them more input. By addressing this gap, PSPs in the UAE can strengthen their appeal and fuel growth across the region.

    UAE Merchants Demand More Frictionless Checkout Options From PSPs

    Merchants in the country seek a range of updates from their PSPs, but those that speed up and simplify checkout are most in demand.

    For UAE merchants requesting additional features from their PSPs, their customers’ ease of checkout is a top concern. One-click solutions enable customers to carry out transactions with one click using stored credentials, and 46% of UAE merchants have asked for these solutions. Merchants in the UAE requested this feature more than those in any other country surveyed.

    Additionally, the second-most highly sought feature similarly makes checkout quicker and easier for customers. More than one-third of UAE merchants have asked for card-on-file technology. The solution enables consumers to pay without having to reenter their information, reducing friction in the checkout process. UAE merchants were 70% more likely to request this than to request payment and gateway tokens — technology more focused on back-end payment processing.

    By emphasizing convenience and minimizing friction, UAE merchants are positioning themselves to meet consumers’ increasingly digital expectations. This prioritization could also reflect a response to competitive pressures in the dynamic eCommerce market. PSPs that understand these preferences can tailor their offerings to better serve UAE merchants and their customers, contributing to mutual growth.

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    Methodology

    The Role of PSPs in the Checkout Experience: UAE Edition,” a PYMNTS Intelligence and Mastercard collaboration, is based on a survey of 300 merchants — 100 in the United States, 50 in the United Kingdom, 50 in Brazil, 50 in the United Arab Emirates and 50 in Australia — conducted Sept. 18 to Oct. 9. All merchants were brick-and-mortar retailers with eCommerce business and were defined as middle-market merchants, meaning they generate revenues of $10 million to $1 billion.

    About

    Mastercard powers economies and empowers people in 200+ countries and territories worldwide. Together with our customers, we're building a sustainable economy where everyone can prosper. We support a wide range of digital payments choices, making transactions secure, simple, smart and accessible. Our technology and innovation, partnerships and networks combine to deliver a unique set of products and services that help people, businesses and governments realize their greatest potential.

    PYMNTS INTELLIGENCE

    PYMNTS Intelligence is a leading global data and analytics platform that uses proprietary data and methods to provide actionable insights on what’s now and what’s next in payments, commerce and the digital economy. Its team of data scientists include leading economists, econometricians, survey experts, financial analysts and marketing scientists with deep experience in the application of data to the issues that define the future of the digital transformation of the global economy. This multilingual team has conducted original data collection and analysis in more than three dozen global markets for some of the world’s leading publicly traded and privately held firms.

    The PYMNTS Intelligence team that produced this report:

    SVP and Head of Analytics: Scott Murray
    Senior Research Manager: Lauren Chojnacki, PhD
    Writer: Carson Olshansky
    Senior Content Editor, Head of Reports: Matt Vuchichevich


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