The Role of Digital Payments in Enhancing Customer Loyalty (2024)

Digital payments have been around for over a decade, but the pandemic has catalyzed its adoption across countries and virtually all categories.

As McKinsey reports in a 2023 survey, for the first time, more than nine out of ten consumers mentioned that they had used some form of digital payment during the year.

The scene is no different in the UAE region.

Statista mentions that the total transaction value in the digital payments market is projected to reach US$29.75bn in 2024.

Digital payments have been gaining popularity and quick adoption as a convenient and secure way of transacting.

They’re fast, hassle-free, and can be done on the go.

But have you ever thought digital payments can also help you build loyalty?

In this article, we will discuss how you can leverage digital payments to enhance your customer loyalty.

But before that, let's do a quick recap to understand why digital payments are getting so popular.

Why is the demand for digital payments increasing?

There’s not one but multiple reasons behind the growing appetite for digital payments:

1. Convenience

As customers are becoming more tech-savvy, they prefer quick solutions and convenience.

Digital payments offer convenience as a digital transaction doesn't take more than a couple of minutes.

Moreover, it can be done anytime and anywhere.

2. Personalization

Digital payments offer a variety of payment modes.

So, brands can offer various modes of digital transaction, such as credit/debit cards, UPI, mobile wallets, internet banking, mobile banking, etc., to facilitate a smooth transaction.

Brands can analyze customer behavior, preferences, and buying patterns to personalize these options.

3. Digital transformation

The past decade has been an era of digital transformation.

The years between 2011 and 2020 have witnessed how digital technologies have reshaped the business world.

The digital transformation journey is still on.

According to the IMD World Digital Competitiveness Ranking 2023 report, the UAE was ranked 12th among 64 countries reviewed globally and 6th among 40 countries in the European and MENA group in terms of digital competitiveness.

As businesses undergo a digital transformation, digital payments become a natural part of the process.

4. Better security and trust

Digital payments are safe and secure.

Some of the key security measures behind digital systems include two-factor authentication, encryption, authorization, biometrics, tokenization, email validation and authentication, and secure socket layer (SSL) and transport layer security (TLS).

This is one of the main reasons consumers today trust digital transactions and rely on it.

How do digital payments build loyalty?

We all will agree that building customer loyalty is paramount today for every brand, irrespective of its size and nature of business.

Today, every brand strives to meet and exceed customer expectations, so the shift is now towards creating a seamless experience for the customer.

Digital payments powered by BaaS are at the forefront of this journey and play a crucial role in building customer loyalty.

Let’s understand how:

1. Creating a seamless checkout experience

The checkout process is the final touchpoint between a consumer and a brand, and the ease or difficulty determines if the consumer will close the transaction.

A seamless and hassle-free checkout process can be a game-changer. As a study mentions, 88% of customers are less likely to return to a brand if they had a bad previous experience.

So, focus on creating a seamless checkout experience to build your base of loyal customers.

2. Frictionless experience

Frictionless experiences have become an industry benchmark in the digital landscape, and BaaS products play a pivotal role in creating a frictionless experience for the consumer.

Integrating a BaaS layer in their product not only works as a payment gateway for the brand but also creates a frictional experience for the customer's entire checkout journey.

By optimizing the transaction process and minimizing redirects, the entire checkout journey becomes faster and more intuitive for the customer.

Customers who value their time and prefer convenience are likely to incline towards platforms that offer frictionless experiences, making them likely to return to you for future purchases.

Remember that a frictionless experience can be your most significant differentiator in a hyper-competitive market.

3. Personalized experience

Digital payments can be customized based on the user preference and previous purchase behavior.

For example, if a consumer has previously used digital wallets to make a payment, brands can display the same digital wallet at the top of the payment options on the checkout page to help close the transaction faster.

Similarly, offering loyalty rewards with their preferred digital payment options can make them feel valued and understood, which works as the foundation for building strong brand loyalty.

The different embedded payment systems can give businesses essential insights into customer behavior, preferences, and spending habits.

Using these data, brands can send personalized discounts, recommendations, and loyalty rewards that will help strengthen brand loyalty further.

4. Diverse payment options

Embedded digital payment solutions are revolutionizing how businesses manage transactions.

One of the biggest advantages of digital payments is its versatility to offer different payment modes.

From the good old credit/debit cards to the modern digital wallets, these integrated payment options ensure businesses can meet consumers' diverse preferences.

This flexibility to choose the preferred payment method not only improves the transaction process but also offers a great customer experience.

And we all know how continued good customer experience helps foster loyalty in the long run.

5. Better security

As Statista mentions, from July 2022 to June 2023, around 38 percent of cyberattacks and network intrusions occurred in the MENA region, with the UAE in second place among the most targeted countries in the region.

The topmost priority for the BaaS platforms is to enhance their security measures and make them a fundamental part of their services.

Some measures the BaaS providers take include a multi-layered approach to safeguard crucial data.

This is achieved by multi-layered encryption techniques where all transactions are encoded.

Such strong measures not only stop cyberattacks from happening but also instill confidence and trust among brands and their customers, reinforcing the fact that digital transactions are secured.

Foster customer loyalty with digital payments

In this digital era, businesses are revolutionizing their payment solutions with digital payments, thus reshaping the customer-business relationship.

Businesses are streamlining their transactions by seamlessly integrating different digital payment solutions into their platforms and enhancing user experience and customer loyalty.

You, too, can tap into the potential of digital payment systems to build loyalty.

But this is only possible when you have the right systems in place.

PayBy can help you get started.

PayBy enables businesses to make cashless payments and increases their revenue with customer-first, innovative, and secure omnichannel digital payment solutions.

You can integrate PayBy with your website to set up a payment gateway.

PayBy also lets you enable cashless transactions, online payments via domestic and international debit and credit cards, and over 1.5 billion wallets.

Want to enable in-app payments?

Worry not!

Integrate with PayBy to offer in-app payment solutions with an optimized mobile pay page and secure transaction interface.

And did we tell you that PayBy is trusted by leading brands in the UAE and licensed by The Central Bank of the UAE, which demonstrates its highest level of financial service approvals to conduct Stored Value Facility and Retail Payment Service Operations?

Sign up today.

The Role of Digital Payments in Enhancing Customer Loyalty

Digital payments have been around for over a decade, but the pandemic has catalyzed its adoption across countries and virtually all categories.

As McKinsey reports in a 2023 survey, for the first time, more than nine out of ten consumers mentioned that they had used some form of digital payment during the year.

The scene is no different in the UAE region.

Statista mentions that the total transaction value in the digital payments market is projected to reach US$29.75bn in 2024.

Digital payments have been gaining popularity and quick adoption as a convenient and secure way of transacting.

They’re fast, hassle-free, and can be done on the go.

But have you ever thought digital payments can also help you build loyalty?

In this article, we will discuss how you can leverage digital payments to enhance your customer loyalty.

But before that, let's do a quick recap to understand why digital payments are getting so popular.

Why is the demand for digital payments increasing?

There’s not one but multiple reasons behind the growing appetite for digital payments:

1. Convenience

As customers are becoming more tech-savvy, they prefer quick solutions and convenience.

Digital payments offer convenience as a digital transaction doesn't take more than a couple of minutes.

Moreover, it can be done anytime and anywhere.

2. Personalization

Digital payments offer a variety of payment modes.

So, brands can offer various modes of digital transaction, such as credit/debit cards, UPI, mobile wallets, internet banking, mobile banking, etc., to facilitate a smooth transaction.

Brands can analyze customer behavior, preferences, and buying patterns to personalize these options.

3. Digital transformation

The past decade has been an era of digital transformation.

The years between 2011 and 2020 have witnessed how digital technologies have reshaped the business world.

The digital transformation journey is still on.

According to the IMD World Digital Competitiveness Ranking 2023 report, the UAE was ranked 12th among 64 countries reviewed globally and 6th among 40 countries in the European and MENA group in terms of digital competitiveness.

As businesses undergo a digital transformation, digital payments become a natural part of the process.

4. Better security and trust

Digital payments are safe and secure.

Some of the key security measures behind digital systems include two-factor authentication, encryption, authorization, biometrics, tokenization, email validation and authentication, and secure socket layer (SSL) and transport layer security (TLS).

This is one of the main reasons consumers today trust digital transactions and rely on it.

How do digital payments build loyalty?

We all will agree that building customer loyalty is paramount today for every brand, irrespective of its size and nature of business.

Today, every brand strives to meet and exceed customer expectations, so the shift is now towards creating a seamless experience for the customer.

Digital payments powered by BaaS are at the forefront of this journey and play a crucial role in building customer loyalty.

Let’s understand how:

1. Creating a seamless checkout experience

The checkout process is the final touchpoint between a consumer and a brand, and the ease or difficulty determines if the consumer will close the transaction.

A seamless and hassle-free checkout process can be a game-changer. As a study mentions, 88% of customers are less likely to return to a brand if they had a bad previous experience.

So, focus on creating a seamless checkout experience to build your base of loyal customers.

2. Frictionless experience

Frictionless experiences have become an industry benchmark in the digital landscape, and BaaS products play a pivotal role in creating a frictionless experience for the consumer.

Integrating a BaaS layer in their product not only works as a payment gateway for the brand but also creates a frictional experience for the customer's entire checkout journey.

By optimizing the transaction process and minimizing redirects, the entire checkout journey becomes faster and more intuitive for the customer.

Customers who value their time and prefer convenience are likely to incline towards platforms that offer frictionless experiences, making them likely to return to you for future purchases.

Remember that a frictionless experience can be your most significant differentiator in a hyper-competitive market.

3. Personalized experience

Digital payments can be customized based on the user preference and previous purchase behavior.

For example, if a consumer has previously used digital wallets to make a payment, brands can display the same digital wallet at the top of the payment options on the checkout page to help close the transaction faster.

Similarly, offering loyalty rewards with their preferred digital payment options can make them feel valued and understood, which works as the foundation for building strong brand loyalty.

The different embedded payment systems can give businesses essential insights into customer behavior, preferences, and spending habits.

Using these data, brands can send personalized discounts, recommendations, and loyalty rewards that will help strengthen brand loyalty further.

4. Diverse payment options

Embedded digital payment solutions are revolutionizing how businesses manage transactions.

One of the biggest advantages of digital payments is its versatility to offer different payment modes.

From the good old credit/debit cards to the modern digital wallets, these integrated payment options ensure businesses can meet consumers' diverse preferences.

This flexibility to choose the preferred payment method not only improves the transaction process but also offers a great customer experience.

And we all know how continued good customer experience helps foster loyalty in the long run.

5. Better security

As Statista mentions, from July 2022 to June 2023, around 38 percent of cyberattacks and network intrusions occurred in the MENA region, with the UAE in second place among the most targeted countries in the region.

The topmost priority for the BaaS platforms is to enhance their security measures and make them a fundamental part of their services.

Some measures the BaaS providers take include a multi-layered approach to safeguard crucial data.

This is achieved by multi-layered encryption techniques where all transactions are encoded.

Such strong measures not only stop cyberattacks from happening but also instill confidence and trust among brands and their customers, reinforcing the fact that digital transactions are secured.

Foster customer loyalty with digital payments

In this digital era, businesses are revolutionizing their payment solutions with digital payments, thus reshaping the customer-business relationship.

Businesses are streamlining their transactions by seamlessly integrating different digital payment solutions into their platforms and enhancing user experience and customer loyalty.

You, too, can tap into the potential of digital payment systems to build loyalty.

But this is only possible when you have the right systems in place.

PayBy can help you get started.

PayBy enables businesses to make cashless payments and increases their revenue with customer-first, innovative, and secure omnichannel digital payment solutions.

You can integrate PayBy with your website to set up a payment gateway.

PayBy also lets you enable cashless transactions, online payments via domestic and international debit and credit cards, and over 1.5 billion wallets.

Want to enable in-app payments?

Worry not!

Integrate with PayBy to offer in-app payment solutions with an optimized mobile pay page and secure transaction interface.

And did we tell you that PayBy is trusted by leading brands in the UAE and licensed by The Central Bank of the UAE, which demonstrates its highest level of financial service approvals to conduct Stored Value Facility and Retail Payment Service Operations?

Sign up today.

Subscription-Based Business Models

Various industries have seen rapid growth in subscription-based business models over the last few years.

According to The Subscription Economy Index report, the subscription industry has grown by 435% in the past decade. And it’s expected to grow even bigger and reach a market size of $1.5 trillion by 2025.

Seeing the data above, we can say safely that the subscription economy is here to stay.

Be it a gym subscription, an OTT subscription, a subscription-based service, or a subscription to a SaaS tool — researchers say that eight in ten adults use some form of subscription product/ service and will continue to do so.

But, what makes subscription business models so popular?

Subscription-based products/ services provide an affordable way for customers to access what they need. It has been proved that consumers won't mind paying for access to exclusive content/products/services.

On the other hand, subscription commerce allows businesses to provide their services/products directly to customers, ensuring a better customer experience and a long-term relationship.

Plus, the subscription model ensures a regular cash flow for businesses.

However, retaining the customer long-term is not easy. While the success of the subscription business primarily depends on the continuous value added by the business, the ease of payment is equally important.

In this article, we will discuss how subscription-based businesses can leverage digital payments to streamline recurring revenue, focusing on automation, reliability, and customer convenience.

Benefits of Digital Payments for Subscription Businesses

From having complete control of your billing cycle and cash flow to improved customer experience through seamless transactions — there are not one but multiple benefits of digital payments for a subscription business. Let’s look at them.

1. Improved Customer Experience

The most significant benefit of digital payment for subscription business is a seamless transaction experience for the consumers.

Digital payments make transactions faster. Consumers can set auto renewal mode with their preferred payment option to renew the subscription to the product/service.

Consumers can even save the payment information details in a secure environment so that they don't have to enter all the details every time a transaction happens.

They can simply set up the payment details once and enjoy the product/ service until they want to pause/cancel it.

2. Enhanced Security Measures

Digital payments are safer than the traditional payment methods.

With features like data encryption and fraud protection, tokenization of websites, and biometric payment methods, consumers trust digital payment methods.

For example, PayBy, which enables business growth with cashless payments, is trusted by some of the leading brands in the UAE.

The brand is also licensed by The Central Bank of the UAE, which helps them earn trust and a good reputation.

It has been given the highest levels of financial service approvals to conduct Stored Value Facility (SVF) and Retail Payment Services (RPS) operations.

3. Diverse Payment Methods

Digital payment methods allow businesses to offer multiple payment methods, facilitating international transactions.

The diverse payment methods enable customers to make cashless payments via 50+ payment modes.

These include some of the popular customer choices like credit/debit cards, net banking, AliPay+, PayBy, Botim, and other digital wallets.

Diverse payment options help subscription businesses reduce churn by offering various payment options for customers so that they can easily renew their subscriptions.

It also helps in global accessibility and currency support, which is essential for businesses that are operating globally.

4. Streamlining Billing and Invoicing

Subscription businesses can automate their billing processes with digital payment methods. You can create a custom schedule to collect recurring payments from customers.

All you need to do is set up a billing cycle of weekly, biweekly, monthly, or yearly payments for your subscription business.

With auto-debit on recurring payments, you can ensure continuous cash flow for your business.

By leveraging digital payments, subscription business owners can create branded invoices and automate sharing via email or SMS with their recurring customers.

You can also provide customers with instant payment confirmation on recurring purchases with branded digital receipts.

This helps build trust and reduce churn while minimizing failed transactions.

Plus, digital payment methods empower you and the customer for a cashless transaction with a click-to-pay functionality on your invoices.

Additionally, you can ensure further customer convenience by offering flexible payment plans, giving them full control.

For example, you can offer options like buy now and pay later, pause payments when they don't want the subscription, change the payment mode, and so on.

5. Leveraging Subscription Management Platforms

Subscription management platforms like PayBy let you integrate payment gateways with your existing website so you can host the payment page and customize it according to your needs.

And did you know that payment pages powered by PayBy are mobile-optimized, too?

PayBy also lets you offer customization and flexibility to your consumers.

So, users can choose from diverse payment modes.

For example, you can enable cashless transactions and online payments via various international and domestic credit cards, debit cards, and over 1.5 billion wallets.

By leveraging subscription management platforms, subscription businesses can keep a tab of their recurring payment status on a real-time dashboard.

Such real-time insights can help you identify inactive customers and payment failures so that you can make informed decisions to reduce customer churn.

Improve recurring revenue with digital payments

Payments are now an important part of the customer experience.

Subscription businesses that rely on recurring payment, offering multiple payment options, directly address the customer's need for a seamless payment experience.

Additionally, recurring payments help businesses to grow by ensuring continuous cash flow.

PayBy helps subscription businesses to collect recurring payments easily. It offers everything a business needs to collect a payment on schedule.

It gives complete control of the billing cycle and cash flow with auto debit on recurring payments.

Get started with PayBy today.

Do Payment Gateways Impact Checkout Conversion Rates

Irrespective of the industry your business is in, the checkout is often the make or break point.

According to Baymard Institute, the average documented transaction abandonment rate is as high as 70-89% across industries.

And one of the leading factors for abandonment is reported to be the payment gateway one offers.

In this post, we look into how payment gateways impact your conversion rate and what you can do to improve it.

How do payment gateways impact conversions

Let’s take a quick look at why and how the payment gateway impacts how many consumers complete a transaction:

1. Speed to checkout

A good payment gateway helps convert the consumer before they can change their mind about making the purchase. The lesser the time to think, the higher are conversion rates - enabling impulse and momentary interest in product/ service is key.

A very long checkout process or technical glitches that slow down the same can create room for drop-offs of even the highest purchase intent buyers.

Good payment gateways come with optimized checkout processes and a high uptime to ensure your business is always ready for transactions.

2. Security and trust

One of the primary concerns of online shoppers is the security offered by payment gateways. And the concern is justified.

Payment gateway breaches and fraud are common.

A report by Stripe mentions that 71% of businesses have reported that they have been targeted by payment fraud at least once.

An average payment gateway breach can cost USD 9.44 million - businesses don’t just need to secure themselves, but also ensure they give consumers a safe platform to make transactions.

3. Global accessibility

When selling globally, businesses need to adapt to consumer payment preferences rapidly. This is where the importance of a payment gateway that comes with currency support and multi-language capabilities becomes important.

At the same time, it is also important for businesses to adapt to device preferences over which consumers engage with them, giving them a way to checkout faster without the back and forth between pages.

Right from the currency, preferred payment modes, devices and more, a good payment gateway enables businesses to adapt to local preferences quickly.

Best practices to follow to ensure higher conversions

If your business has been experiencing lower conversion rates, here’s what you can do to improve the number:

1. Streamline the checkout process

Since the checkout process is a crucial step toward conversion, it’s important to keep it simple and remove any friction that can lead to customer frustration. Here are a few steps to remember:

• Keep the checkout process to a single page. Scrolling from page to page can distract a customer, causing a loss in sales. Further, it will also factor in if there are any internet issues.
• Offer alternative payment methods so that your customers have one or two preferred payment methods included. This will also attract customers who don't have access to or don't prefer the traditional payment methods.
• Implement a one-click payment system that’s convenient and encourages on-the-go shopping. In this system, the sensitive data is secured with PCI and tokenized on the website.
• Filling out unnecessary details like birthdays and anniversaries is time-consuming and often turns off buyers who are in a hurry. Instead, gather only the necessary data that are compulsory to complete the payment.
• One of the biggest inconveniences for buyers is when they have to sign up and provide login details before they can checkout. Look for a payment gateway that offers QR code payment or displays the bank account details where you can asynchronously process the payment without having to log in.

2. Offer diverse payment modes

Choose payment gateways that allow users to choose from diverse payment modes.

For example, with PayBy, you can enable cashless transactions and online payments via various international and domestic credit cards, debit cards, and over 1.5 billion wallets.

It easily integrates with your existing website, so you can host the payment page and customize it according to your needs.

And did we say that payment pages powered by PayBy are optimized for mobile phones, too?

3. Ensure speed and reliability

One of the biggest turnoffs for consumers is a slow and unreliable transaction process. Irrespective of the products/ services in the equation, this can result in the consumer losing trust in your business.

A good payment gateway enables you to offer speed and reliability to your consumers. They are also licensed to enable transactions by legal authorities, giving you and the consumer, further peace of mind.

For instance, Payby is licensed by The Central Bank of the UAE. It has been given the highest levels of financial service approvals to conduct Stored Value Facility (SVF) and Retail Payment Services (RPS) operations.

4. Ensure mobile responsiveness

Data says that at least 79% of mobile users have made a purchase at least once using their mobile phones.

So, ensure your payment gateway has mobile responsiveness for consumers who prefer to shop using their handheld devices.

A good payment gateway offers an optimized mobile pay page along with secure mobile payment modes.

5. A/B testing and analytics

Continuously A/B test different elements, designs, and functionalities of payment gateways to determine the best configuration that gives you maximum conversion.

You can A/B test the payment gateway among a subset of customers to understand the preference for local payment methods.

Track and analyze the data to understand how it’s impacting conversion and the average order value.

Are you ready to improve your conversion rates?

While there are many options in the market that can help you set up a payment gateway, Payby is one of the leading solutions in the UAE and is trusted by leading brands across industries.

PayBy’s solution caters to a vast array of industries, including fitness and wellness, insurance, travel and tourism, social products and services, restaurants and cafes, hospitals and healthcare, information technology and services, gaming betting and casinos, and more - alongwith the ability to scale with the size of your business.

Its easy integration feature works seamlessly with your existing technology – be it your website or app.

Payby comes with several other powerful features that go beyond improving your conversion rates, and boosting the experience you deliver to consumers. This includes the ability to generate digital receipts, invoices, payment links and more.

Want to know more about how Payby payment gateways can improve your conversion rate?

Get started with Payby today.

How do Payment Gateways Impact the User Experience

As businesses grow, they need to integrate a secure payment processing system. While some companies may still prefer to invoice customers to reduce card transaction fees, a report mentions that “£23.4 billion worth of late invoices are owed to firms across Britain.”

Late invoices can significantly impact the cash flow of the business. Accepting multiple payment methods not only improves the situation for business but also offers a positive customer experience.

A payment process that is quick, easy, and tailored to the local business environment enhances overall customer experience and loyalty.

Recap: What is a payment gateway?

Payment through a payment gateway is one of the many options that brands can integrate into their online stores for easy payment processing.

Payment gateways are a key component in electronic payment processing systems and work as the front-end technology that captures the customer payment information.

It then sends it to the merchant-acquiring bank, where the transaction is processed. A payment gateway is one of the popular modes of online payment today that is used across industries.

How do payment gateways impact customer experience?

Making a payment and checking out is the last mile in a buyer’s journey, and the transaction experience with the payment gateway can deeply impact the customer experience.

Here are some instances of how payment gateway impacts the customer experience:

1. Ease of use

Customers continuously seek convenience and ease of use, and a seamless online transaction experience can impact the overall customer experience positively.

For example, a user-friendly payment gateway interface makes it easy for customers to make a quick payment and checkout from the online store.

On the other hand, a cumbersome interface can be a big turnoff for an impatient customer.

2. Reduce friction

The payment gateway also helps to reduce the friction between the customer and the business by facilitating a hassle-free shopping experience.

Be it credit cards, debit cards, or digital wallets — payment getaways can offer a seamless transaction, boost sales, and reduce cart abandonment rates, especially for e-commerce stores.

How to set up a payment gateway for positive customer experiences?

If you’re introducing payment gateways for your website, here are some tips to help you achieve a positive customer experience:

1. User-friendly interface and checkout experience

The checkout process is the most crucial step in a buyer’s journey, and this should be made as seamless as possible.

That’s why a user-friendly payment gateway interface is important to impart customer satisfaction.

A poorly designed payment gateway interface can frustrate a customer, resulting in cart abandonment.

2. Mobile responsiveness and accessibility

Customers today prefer to shop on the go. With easy access to smartphones, brands need to make the shopping experience convenient for on-the-go shoppers.

Thus, they need to ensure that the payment gateways work smoothly across various devices, including smartphones.

Remember, the ability to facilitate mobile payment is no longer a luxury but a must for brands to stay ahead of the competition.

3. Security for trust

Payment gateways with robust security features, including encryption and fraud prevention measures, play a big role in gaining customers' trust.

Customers need to feel safe with their banking information, so brands that want to build a positive user experience must pay attention to safeguarding their payment gateways.

Creating trust is not just meant to keep the customer payment information safe but also to build customer loyalty, which translates to repeat sales.

4. Personalization

Tailoring the payment gateways based on customer profiles creates a more relevant transaction experience for the customer.

In an era when customers expect everything to be personalized, a tailored payment gateway for the customer will definitely help you earn some brownie points.

5. Transaction speed

Customers today prefer a fast and smooth transaction experience. Payment gateways that offer swift and smooth transaction experiences are surely going to earn some praise from customers.

Remember, a fast transaction speed not only satisfies the impatient customer but also helps improve the overall brand perception.

Payment gateway best practices

If you want your customers to have a great user experience while using your payment gateway, here are some tips for you:

Keep customer convenience in mind

Make it simple and easy for your customers. For example, if you’re in a subscription business, offer recurring payment options that help them renew their subscriptions easily.

You may also consider integrating various payment methods like payment through credit cards, debit cards, UPI, net banking, COD, cheque, etc., for your website so that customers can choose the best-suited option for payment.

Minimize risks

Ensure your payment gateways are capable of encrypting sensitive customer payment information like account numbers. It should also offer various verification procedures and secure card information.

Always use SSL-certified payment gateways along with a secure logo.

Clear communication

Always maintain clear and transparent communication with customers. Keep them updated about any failed transactions, payment status, and due payments so that customers feel assured.

Maintaining clear communication helps to build trust, which improves sales.

How to choose a payment gateway for a better user experience

There are several options to consider while picking a payment gateway. Here are some pointers for you to consider:

Know the preferences of your customers

To positively impact the user experience, it's important to know what payment gateway your customers are already using.

If you choose payment gateways your customers are already familiar with, then you'll see better adoption, and you'll run into lower risks.

Check for integrations

Check for the API integrations of the payment gateway and if it will work with your existing technology.

Choosing a solution that doesn't integrate with your technology will be of no use and will slow down the entire process.

Look for robust security

Security and fraud prevention are of utmost importance, so you need to be vigilant with the security system of the payment gateway.

Look for PCI-compliant companies that uphold security provisions for electronic transactions.

With PCI compliance, you can be assured that your customer's payment information will be protected and secured from theft.

Consider the fees

Compare the costs of the payment gateways and how they will affect the security cost.

For example, if the payment gateway has a low fee but you have to invest in its security and fraud detection, the overall cost can increase.

Check their market worth

Invest in a payment gateway that is trusted by customers.

Avoid payment gateways that don't have a strong security history to prevent customers from abandoning their carts or, even worse, cases of fraudulence.

Choose payment gateways that have a respectable clientele list.

Opt for flexibility

Flexibility is one of the key attributes to look for when choosing your payment gateway.

Remember, each customer is different and has different preferences, so offer them a solution where they can quickly switch between credit cards, debit cards, UPI, Android, and Apple Pay, etc., and have a smooth transaction experience.

Picking the right payment gateway for your business

Now that you’re ready to set up your first payment gateway, try PayBy — it seamlessly integrates with your existing system, and you can set it up easily. Licensed by The Central Bank of UAE, PayBy is trusted by some of the leading brands in UAE.

PayBy can manage all end-to-end transactions via domestic and international credit cards and integrates with your website and apps easily.

Get started today.