New VISA Report Shows GCC's Online Consumers Favor Biometric Authentication Over Traditional Card Payment

Entrepreneur

2 days ago

Manual entry of card details and security concerns are major pain points for consumers shopping online, resulting in lost revenue for businesses.
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media.
Visa, the global digital payments platform, has revealed its "Checkout Friction Report", a new study which dissects factors that consumers demand for a more secure and seamless e-commerce experience.
The research is based on a survey of 2,016 online shoppers across the GCC, including the UAE, and explores their experiences with e-commerce purchases. It examines common pain points during the checkout process that affect both consumer satisfaction and business outcomes.
The report shows that one in three respondents (33%) in the UAE shops multiple times a week for groceries. For categories such as fashion, entertainment, and electronics, shopping frequency ranges from once to a few times a month.
According to 40% of respondents, the biggest frustrations with online checkouts are security concerns, followed by the hassle of entering card details manually (37%). By addressing these challenges, retailers can enhance the checkout experience which could lead to increased customer satisfaction.
Source: Visa
"Challenges in the online checkout process have direct implications for businesses, resulting in lost revenue, and hampering both customer acquisition and retention," said Salima Gutieva, Visa's VP and Country Manager for UAE. "Today's consumers expect – and deserve – a more seamless and secure e-commerce experience. That's why Visa is working with partners to enable solutions like Click to Pay, which leverages biometrics and tokenization to eliminate key pain points and deliver a more convenient shopping experience. Improving these moments not only drives business results but also builds on the UAE government's achievements in building a seamless, secure digital economy,"
Additionally, 58% of the surveyed consumers say they're worried about the risk of fraud or hacking when storing their card details on multiple websites, with the report also showing that 42% of respondents have experienced fraud or security breaches.
In a key finding, Visa's "Checkout Friction Report" reveals a strong preference for a more streamlined checkout, with 65% of respondents supporting a single registration process for online payments across all participating merchants.
When the option of biometric authentication was proposed, two-thirds (67%) of respondents said they would use it to check out, with many trusting biometric authentication (fingerprint/face identification) more than traditional payment methods (passwords/one-time-passwords).
For businesses, the demand for simpler and safer checkout options is clear. Most respondents (82%) would shop online more frequently and be more likely to complete their purchases with a one-click checkout option. Two-thirds of the surveyed consumers (66%) show a high likelihood of using "Click to Pay with Biometrics'' if offered by online retailers.
Visa Click to Pay streamlines online shopping by providing advanced checkout experiences, eliminating the need to manually enter card details, thereby making transactions significantly faster. At participating e-commerce platforms, consumers can simply click the Click to Pay button to complete their purchase quickly and easily using their preferred Visa card and shipping address. Visa's Click to Pay relies on biometric authentication available on the consumer's device and does not require transfer of biometric data.