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Payments Security: The Key to Winning Consumer Loyalty in MENA

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6 months ago

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Payments Security

The adoption of digital commerce in MENA has skyrocketed over the past few years. Countries that were once deeply attached to cash and physical transactions have shot to digital maturity in just a few years. According to Checkout.com’s 4th annual MENA ecommerce report, The State of Digital Commerce in MENA 2024, 91% of the region’s consumers have reported shopping e-commerce in the past two years. The number of people who shop online in MENA at least once per day has grown by 80% since 2020, with the Kingdom of Saudi Arabia leading the way with a staggering 90% increase.  

In response to evolving consumer demands, merchants across MENA are embarking on ambitious digitization journeys and adopting innovative payment strategies. As digital commerce moves beyond the early-adoption phase, the focus is shifting toward fine tuning performance. In doing so, strengthening payment security has become a top priority.

As innovation stimulates advancements in the payment industry, fraudsters don’t rest on laurels, further sophisticating their own scam methods and tricks. Furthermore, the very aspects of e-commerce that make it an enticing prospect for consumers – speed, convenience, and anonymity – also work in cybercriminals’ favor. Because the e-commerce ecosystem includes multiple stakeholders, the retailer, the customer, the processor, and the networks, fraudsters have multiple potential access points that they can exploit.

According to Remo Giovanni Abbondandolo, General Manager – MENA at Checkout.com, ecommerce fraud can take many forms, such as criminals using stolen credit card numbers to make purchases, transaction replays, and chargeback fraud. The diverse and complex nature of e-commerce fraud emphasizes the importance of vigilance and secure practices merchants must adopt to avoid such incidents.  

But it’s not just the initial financial loss that merchants need to be concerned about. Falling prey to ecommerce fraud can damage customer trust and the company’s reputation. Alarmingly, 33% of MENA consumers say they have been a victim of payments fraud. According to The State of Digital Commerce in MENA 2024 report, safe and secure checkout is now a priority for 39% of MENA consumers. In contrast, in 2020, survey respondents placed the highest value on speedy delivery.

Furthermore, up to 30% of shoppers have said a single falsely declined payment- when a payment is declined despite the payee having sufficient funds in the account, would lead them to shop from a competitor’s website. With the cost of customer acquisition for e-commerce merchants having increased, a rise in falsely declined payments adds insult to injury. This makes high-performing acceptance solutions a matter of huge competitive importance in MENA.

To this point, it’s important to mention that the region also continues to see a relatively high number of false declined payments. According to Checkout.com’s latest report, 23% of respondents experienced a falsely declined payment in recent months. In today’s fast-paced digital economy, consumers are also less patient, less loyal, and savvier than before.

Shoppers want to know their payment is being handled by a safe and reliable partner. The good news for merchants is that fortifying payments security is a much simpler task than dealing with widespread data breaches.

In this context, Abbondandolo outlines effective strategies that merchants in MENA can adopt to minimize payment fraud and false declines, thereby enhancing consumer trust and loyalty.

  1. Choose a trusted partner

Partnering with a regulated payments service provider (PSP) that offers acquiring capabilities, advanced technology support, and comprehensive regional regulatory expertise can significantly bolster a business’s security measures against fraud. Regulated PSPs provide acceptance solutions that enhance payment processes through optimized messaging, routing, and retries, ensuring robust security and seamless transactions throughout. Furthermore, because fraudsters have no boundaries, partnering with a regulated global PSPs with local experience offers advanced technology solutions that include real-time fraud detection systems that are trained on detecting the most advanced global fraud scams and techniques. By analyzing transactional data in milliseconds, identifying suspicious patterns and behaviors that may indicate fraudulent activity.

By partnering with a regulated PSP that offers acquiring capabilities and advanced technology support, businesses can benefit from a holistic approach to fraud prevention and payment security.

  1. Harness the power of embedded AI

Regional merchants are increasingly safeguarding their businesses from fraud by leveraging a combination of tools and machine learning. Advanced payment technology empower merchants to seamlessly integrate fraud detection solutions into their platforms, without requiring additional set up. Meanwhile, AI is now trained on billions of global transactions, with merchants benefitting from a global network effect that allows them to analyze vast amounts of data to detect patterns, anomalies and emerging fraud like never before.

Minimizing fraud and improving performance in payment processing are closely intertwined goals that can significantly impact a business’s bottom line and customer satisfaction. When a business effectively reduces fraud, it tends to experience several concurrent benefits that contribute to overall performance enhancement.

Our merchants in the region have been benefiting from a whole new level of payment performance with Intelligent Acceptance. This product combines advanced Artificial Intelligence and Machine Learning, vast network data, and deep payment expertise to increase conversion and unlock untapped revenue. We have already recovered $1.1 billion of revenue, and increased acceptance rates on average by 2% for globally.

  1. Make data work for you

Research conducted by Checkout.com alongside Oxford Economics found that $50.7 billion was lost due to false declines in recent years. Large data sets can empower merchants to track and respond to customer payment trends with laser accuracy in real-time. Here we have seen the great benefit from Intelligent Acceptance that draws on insights from these data sets to deliver a whole new level of payment performance, increasing conversion and unlocking untapped revenue, as well as Network Tokens that have helped our merchants achieve higher authorization rates, reduced fraud and allow businesses to offer an improved customer experience, while keeping customers data

Looking ahead, half of all shoppers in MENA anticipate an increase in their online spending over the next 12 months. Abbondandolo believes that MENA merchants still have significant untapped opportunity to combat fraud, reduce false declines and their overall payments costs, while increasing their revenue. As consumers increasingly embrace digital shopping and payments, optimizing every aspect of the ecommerce experience remains crucial for merchants to capitalize on this growing trend.

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Financial

CFI Partners with Saadiyat Nights as Part of Its Collaboration with DCT Abu Dhabi

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1 day ago

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January 17, 2025

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CFI

CFI Financial Group is proud to announce its official partnership with Saadiyat Nights, as part of CFI’s strategic partnership with the Department of Culture and Tourism – Abu Dhabi (DCT Abu Dhabi). This collaboration underscores CFI’s commitment to supporting its local community and providing its clients with unforgettable cultural and entertainment experiences in one of the world’s most dynamic destinations. 

Currently captivating audiences, the second edition of Saadiyat Nights is bringing legendary international artists, performers and fans together at the iconic open-air venue on Saadiyat Island. Running from December to February, this extraordinary series features iconic acts like Boyz II Men, Christina Aguilera, Robbie Williams, Michael Bublé, Leningrad, Ebi and Omar Khairat, with some already dazzling the stage and others eagerly awaited.

Through this collaboration, CFI will benefit from exceptional brand visibility at each event, while offering its clients premium access to performances and money-can’t-buy experiences, including exclusive Meet & Greet opportunities with some of these legendary artists.  

“Through this collaboration, CFI reinforces its brand presence and industry leadership by securing high brand visibility at each of the Saadiyat Nights events in Abu Dhabi, a key hub for culture and global connections,” said Hisham Mansour, Co-founder and Managing Director of CFI. “This partnership reflects our commitment to fostering meaningful connections, supporting cultural initiatives and providing our clients with opportunities to engage with world-class experiences that complement their journey with CFI.”

Through this partnership, CFI is proud to support Abu Dhabi’s position as a leading cultural destination in the region, while staying committed to its mission of providing traders with exceptional trading experiences and engaging with like-minded local communities.

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Financial

MultiBank Group Secures Court Victory as Judge Declares Von Der Heydt Claims as “Fictitious” and “Untenable”

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1 day ago

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January 17, 2025

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MultiBank Group

MultiBank Group has achieved a significant courtroom victory in the Eastern Caribbean Supreme Court against Von Der Heydt Invest S.A. (VDH), a Von Der Heydt Group subsidiary, which had brought claims against MultiBank FX International Corporation (MBFX), a MultiBank Group entity, and its founder, Naser Taher.

The court described the allegations brought by VDH as ‘fictitious’ and ‘untenable’, labelling VDH’s pursuit of these matters as an “abuse of process.” The court ordered VDH to cover over USD$25 million in legal costs incurred by Mr. Taher and MBFX. 

The Honorable Justice Gerhard Wallbank’s decision rejected VDH’s claims and confirmed MultiBank Group’s adherence to transparency and integrity. Naser Taher, Founder and Chairman of MultiBank Group said: ‘The accusations levied against us by Von Der Heydt have always been unfounded, and this ruling is a testament to our strong adherence to the principles of fairness and lawful conduct.’

The court confirmed that the legal campaign by VDH and its affiliates over the past four years consisted of coordinated and unfounded allegations targeting MultiBank Group. The judgment also highlighted a “conspiratorial network” involving multiple parties.

A previous ruling by the court made in early 2024 compared the relationship between the Von Der Heydt Group, to the Bernie Madoff ponzi scheme.

This decision marks an end to VDH’s pursuit of claims against the MultiBank Group and runs parallel to the financial group’s broader collapse. Von Der Heydt Bank, a 250-year-old institution and VDH’s parent company, has surrendered its banking license and ceased to exist after being placed in liquidation by its founder Dietrich Von Boetticher. The court further commented on the plight of German noteholders allegedly represented by VDH, attributing their difficulties to mismanagement at the hands of the Von Der Heydt leadership.

A prior ruling by the London High Court found Colm Smith, CEO of CSM Securities, and his company in contempt of court for not adhering to a worldwide freezing order (WFO) obtained by MultiBank Group. This contempt stems from Smith’s failure to disclose assets related to a legal dispute involving Van Der Heydt Invest SA (VDHI), where significant losses were linked to investments in notes associated with the Multibank Index. His actions have raised the possibility of imprisonment as the court continues to address allegations of unlawful collusion against MultiBank Group, which are unfolding in various European courts.

MultiBank Group’s victory in the Eastern Caribbean Supreme Court further solidifies its position as a trusted leader in the financial derivatives market, operating under the oversight of 16 regulators across five continents and serving over one million clients worldwide. Naser Taher added: ‘We are delighted that the judiciary has recognised the baseless nature of these accusations and affirmed our global reputation for integrity and operational excellence. We remain steadfast in delivering the highest standards of financial services to our clients.’

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Features

Building businesses that last: Lessons from Dubai’s Startup Ecosystem

Published

1 week ago

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January 9, 2025

By

Culture Mapping

Dubai-based entrepreneurs and podcast hosts Konstantin Koloskov and Anastasia Davydova share lessons from 2024’s dynamic business landscape, exploring the power of collaboration, sustainable growth, and staying true to your vision amidst rapid change. Dubai in 2024 was a hub of energy and innovation, with startup founders raising capital, scaling rapidly, and embracing the city’s ever-changing landscape

As co-hosts of Culture Mapping, a podcast exploring the intersections of culture, entrepreneurship, and life in the UAE, we’ve had the privilege of looking at Dubai through a unique lens. Our conversations with inspiring guests—from startup founders to artists—have offered us fresh perspectives on the opportunities and challenges 2024 has brought.

At the same time, our collaboration on the podcast has been a powerful reminder of the strength found in partnerships. Beyond being co-hosts, we’re both entrepreneurs leading our own companies — Konstantin, the co-founder of Storm, a content studio, and Anastasia, the co-founder of Movingo, a relocation platform for businesses and talents moving to the UAE.

2024 was a challenging year for both of us, but it reinforced a key insight: the power of collaboration within teams and across industries and ventures. Supporting each other in our businesses while building the podcast together has opened new opportunities, sparked creative ideas, and brought energy to everything we do. We also saw This spirit of collaboration reflected in our podcast guests. Dubai in 2024 has been a hub of energy and innovation, with startup founders like those we interviewed raising capital, scaling rapidly, and embracing the city’s ever-changing landscape. Their stories reminded us how crucial it is to stay connected to a network of thinkers and doers who inspire and challenge you.

Key Lessons from 2024

  1. Stay Open to New Opportunities, But Don’t Lose Sight of Your Core Vision: One of our most memorable guests this year was Phillipo Minelli, a visionary artist who embodies this principle. While he sees the growing potential of the UAE and its flourishing art scene, he stays grounded in the values of his work. Phillipo reminded us that growth and opportunity mean little if they compromise your core mission or beliefs.
  2. Prioritize Sustainable Growth Over Short-Term Gains: Felix Erdman, a businessman featured on our podcast, is a shining example of this lesson. His approach to building wealth with a long-term perspective—eschewing fleeting trends and buzz-worthy ventures—was inspiring. His story reinforced what we’ve learned firsthand in our businesses: thoughtful, strategic growth is the foundation for lasting success.
  3. Collaboration Drives Innovation: Dubai’s vibrant, multicultural energy fosters collaboration in a way few places can. Whether it’s the three startup founders we interviewed—who shared how working with the right partners helped them scale—or the creative synergies we’ve experienced in our work, it’s clear that great things happen when ideas are shared and connections are made.

Looking Ahead to 2025

As we prepare for the New Year, we’re embracing the lessons of 2024 with a renewed focus on intentional growth. The global economic shifts have made us even more mindful of how we approach risk and investment. Innovation matters, but so does sustainability. To our fellow entrepreneurs, here’s the advice we’ll be taking with us into 2025:

  1. Keep an eye on new horizons, but stay true to your vision.
  2. Prioritize sustainable growth over chasing quick wins.
  3. Value collaboration—it’s a game-changer.

Dubai continues to be a city where ambition meets possibility, and we’re excited to see how it will evolve in the year ahead. For us, the focus is clear: building businesses that last, telling stories that matter, and embracing the power of collaboration to make it all possible.

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