In today’s digital age, customers in the UAE are increasingly looking for flexible payment options. One option that is gaining popularity is split payments. Split payments allow customers to pay for a single purchase using different payment methods. This can be a great way to pay for other large expenses. This option is gaining traction, supported by regional insights and examples.
There are several reasons why split payments are becoming more popular in the UAE:
A) Maximizing Financial Flexibility
Customers increasingly value the ability to manage their finances by splitting payments across different methods. This not only offers a way to pay for high-value items without maxing out any single payment method but also empowers them with financial control.
As per study by KPMG revealed that 75% of UAE consumers prefer flexible payment options, and 63% are more likely to complete a purchase if they can split the payment across different methods. This indicates a strong preference for financial flexibility.
B) Combining Payment Options for Larger Purchases
Split payments empower customers to combine various payment methods, making it easier to manage large expenses. For instance, a customer buying a state-of-the-art gaming console might split the payment between a debit card, a credit card, and a digital wallet like Apple Pay. This method ensures they don’t exceed their limits on any single payment method, allowing them to proceed with their purchase smoothly.
For example, consider a young professional in Abu Dhabi who wants to buy the latest iPhone, priced at AED 4,200. They might pay AED 1,500 using their debit card, AED 1,500 from their Apple Pay wallet, and the remaining AED 1,200 using a credit card. By splitting the payment, they can manage their cash flow effectively without waiting for more funds to be available in one account.
C) Enhancing Convenience and Reducing Abandonment
The convenience of using multiple payment methods can significantly reduce cart abandonment rates. Split payments allow customers to complete the transaction without the stress of their preferred payment method not covering the total purchase amount.
According to a report by Statista, 37% of online shoppers in the UAE cited issues with payment methods as a primary reason for cart abandonment. Offering split payments can address this, potentially reducing abandonment rates by up to 25%, providing reassurance to businesses.
D) Catering to Diverse Payment Preferences
The UAE is home to a diverse population with varying payment preferences. Some customers may prefer using a combination of digital wallets and traditional banking methods. Split payments cater to these preferences, allowing customers to mix and match payment methods according to their convenience.
For example, a customer shopping online for electronics might use AED 500 from their bank account via a direct transfer, AED 700 through a credit card, and the remaining balance. This flexibility accommodates all payment preferences, leading to a more satisfying shopping experience.
Conclusion
By offering split payments, you provide customers in the UAE with the financial flexibility, convenience, and control they desire. This payment option enhances the shopping experience and helps reduce cart abandonment and increase sales, making it a valuable tool for driving business success.
