Intelligent CIO Africa Issue 54 | Page 31

TALKING

‘‘ business

Local relationships and locally savvy partners are crucial for global payment firms venturing into the Middle East , North Africa and Pakistan ( MENAP ) region .

First , payment methods vary per country and local payment methods often reign supreme . For example , over 40 % of KSA payments are processed through local MADA cards and over 80 % in Kuwait are processed through the country ’ s KNET gateway . Access to such networks is crucial for any business seeking to earn a customer ’ s trust and business .
Moreover , MENAP is a payments landscape that demands the ability to operate with multiple currencies within and cross-borders . Merchants are also understandably risk-averse in their payments partnerships and are looking to go with tried and tested players who are genuinely familiar with local laws , regulations and culture .
Legacy providers within the region ’ s payments ecosystem abound and any international player coming in without inside help would find this landscape very difficult to navigate .
The diversity of the customer base here also has an impact on purchasing decisions . Granular data shows that co-existing nationalities and expat communities across the GCC have distinct online purchasing behaviours and habits . The demographic nuances of the MENAP consumer base , at the very grassroots level , which differ by wealth , religion , nationality or expat status ( as well as gender and age ), all have a bearing on how the customer pays and shops online .
Data
With such complexity of integration , regulation and a diverse local potential customer base , robust transaction data is critical . Without data , the considerable amount of effort taken to establish a presence and invest in payments in the region can quickly be wasted .
Merchants in MENAP need to feel confident that they have straightforward and efficient access to quality data that flows seamlessly into their in-house systems and provides actionable insights that can inform corporate strategy across silos . Checkout . com ’ s research shows that 41 % of merchants say they are not receiving actionable data and analytics on their payments .
An example of this data is the authorisation rates for each payment method performs in each market . Checkout . com data shows that beyond insufficient funds , common decline reasons in the region come down to format error or failed 3DS authentication .
Of the consumers surveyed in MENAP , 21 % say they have experienced a false decline at least once . This compares with 14 % of a same-sized sample from across the UK , France , Germany and the US . Yet only 33 % of MENAP consumers are willing to retry following a false decline , which compares with an overall total of 52 % across the UK , France , Germany and the US who would be willing to do so .
It is precisely this kind of data that Checkout . com research reveals is sorely lacking for many merchants , which they need to reduce liabilities for chargebacks and fraud . Without it , merchants seeking to expand in the region have no understanding of ‘ what good looks like ’.
Choosing the right partner
But one must choose their partners carefully . A partner with in-depth knowledge in one country may not have
Mohammed Ali Yusuf , MENAP Regional Manager , Checkout . com
Getting the partnerships right is key to potentially unlocking a lucrative market with e-commerce and digital payments set to accelerate in the coming years .
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