A payment gateway is a system and infrastructure that facilitates payments from e-commerce stores. It processes the transactions from a website, thus enabling merchants to accept and manage payments and mitigate fraud in a secure way.
The current market for e-commerce in Qatar is estimated at US$1.2b. Of this an estimated 38% passes through local merchants. Government initiatives are currently heavily promoting the adoption of e-commerce, consumer protection, advanced marketing & advertising, consumer trust culture, and digital infrastructure which will help drive the local e-commerce market.
Behavioral and demographic trends in the consumer market both point towards in increasingly preference towards online shopping using cashless payment. As local e-commerce grows, there will be large opportunities for payment gateway players to capture new market share.
The majority of businesses in Qatar already transact online in some way, indicating a high degree of awareness in payment systems. However challenges faced with existing service offerings indicate a strong opportunity for new entrants.
Additionally, as the government pushes growth in Qatari e-commerce and businesses, the percentage of sales generated through online channels can be expected to increase.