Page 27 - 7x PR REPORT MAY 2024

5/28/24, 11:29 AM Fintech is shaping the future of e-commerce in the Middle East: Here’s how - Logistics Middle East
In response, fintechs leverage cutting-edge technologies, such as Virtual Card Issuance
(VCN). This solution sees fintech partnering with a financial institution or Payment
Service Provider (PSP) to issue and manage virtual cards. These cards feature randomly

generated 16-digit numbers linking to a credit, debit, or prepaid account, enabling
users to make purchases online without revealing their card information. This not only
significantly reduces the risk of digital fraud but also provides a more seamless

checkout experience for customers, with no need to store sensitive credit card
information. This ultimately builds greater brand loyalty between a customer and a
digital merchant, whilst the fintech remains responsible for keeping the customer’s card

details safe.

Another solution increasingly leveraged by fintech is using AI to strengthen payment

protocols via advanced security features, such as encryption and biometric
authentication. These measures safeguard customers’ information and personal data
throughout the transaction process while protecting institutions and merchants via

Know Your Customer (KYC) and Anti-Money Laundering (AML) processes. This helps to
prevent fraud in real-time and even flags potential fraud before it happens.

From a social perspective, one of the most important ways fintech drives e-commerce

forward is through improved access to digital services for small and medium-sized
businesses (SMEs). Today, licensed fintechs are partnering with e-commerce platforms
such as Amazon and Noon to extend secure microlending solutions to the small

merchants who operate on their platforms. By providing small digital merchants with
the means to access business financing, this collaboration between fintechs empowers
small businesses and entrepreneurs throughout the Middle East to grow their

businesses in the digital marketplace.

Fintech and e-commerce powered future

So, what is the future of the relationship between e-commerce and fintech? Looking
ahead, we can expect an even greater focus on emerging technologies such as AI and
the widespread adoption of embedded finance solutions, which enable the integration

of financial services directly into non-financial platforms. In the context of e-commerce,
this innovation not only provides the customer with a significantly more seamless and
secure user experience but also provides digital merchants with an expanded range of

services and financial solutions for their existing and prospective target markets.

For example, Foo works with digital merchants and service providers across the MENA
region to design, develop and deliver seamless embedded e-commerce solutions. Our

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