Online Payment Gateways in Qatar
As the economy of Qatar continues to grow, the only way of tapping into the global market is through adoption of the online marketplace and international trade. The online financial scene globally is as active as the bank's people are used to, but the pace at which Qatar is catching up is rather slow. Some of the setbacks facing the adoption of online payments in the country and the region as a whole are;
Even if there are economies set up businesses which they can run online, the costs and fees associated with setting up a gateway are rather high. There is always the option of seeking alternatives outside the region, but if you want to do business and receive your money in the Middle East, the high setup cost will be a hurdle you must cross. The two major players in Qatar who deal in online finances, charge between 6% and 7%. This is rather high when compared to other countries that have fully embraced the online financial gateway and charge as low as 0.2% to 0.3%.
Cash flow challenges
Due to the long process involved in clearing the income obtained from online sources, business in the Qatar market space find themselves disadvantaged. An online payment solution might have been successful, but it takes to long for the money to reach the business. The direct impact of this is hindered operations and limited opportunities for growth and expansion.
The only way such challenges can be eliminated is through persistence in using them. As the volume of users grows, the direct effect will be an increase or entry of industry players who are willing to change the market forces. In the meantime, companies are cutting down on their processing fees by offering COD payment option. Currently, the following online payment gateways are available and used in Qatar;
- Paypal is the most widely used online payment gateway in the world. Setting up an account is free, but account holders must open a US dollar account because payments are sent in US dollars. Apart from the transaction fee of 2.9%-3.5%, the merchant is charged for currency conversion.
- CashU is a target payment gateway for online traders in North Africa and the Middle East. Users can access information on how to make a payment online from the Dubai office, but the cost per transaction is 2.9%-3.3%.
The best payment gateway is that which offers the most convenience of use and charges. This cannot be said with what is available and in use now, but the future is promising.