Company’s DalPay.com merchants will be able to offer goods and services to MENA region in locally-preferred payment method
DALVIK, Iceland – December 16, 2014 via Yahoo Finance – Snorrason Holdings ehf, a leading provider of international payment processing services, announced today that it will be offering a cash payment method at the beginning of 2015 via its payment brand DalPay, in a partnership agreement with CashU, the leading online payment gateway for the Middle East and North Africa (MENA) region.
Cash remains the most popular payment method in the MENA region, where only 18% of adults have a bank account and only 2% have a credit card, according to the World Bank’s 2011 Global Financial Inclusion (Global Findex) Database. Without a cash payment method, consumers and merchants in the region are excluded from participating in the global e-commerce marketplace traditionally powered by online credit card payments.
“Giving our payment gateway merchants more tools to reach more customers in more geographies is the driving force behind our partnership with CashU,” explains Snorrason Holdings CEO Bjorn Snorrason. “The CashU cash payment method will enable us to offer goods and service to a large portion of the MENA population who wouldn’t otherwise be able to purchase online because they don’t have a credit card.”
CashU is a safe payment method designed for and customised to serve and support online shoppers in all Arabic speaking and surrounding countries with secure, accessible and easy to use payment solutions, giving everyone the possibility to buy online without discriminating on income, nationality or banking credentials. CashU users can fund their accounts with cash at participating CashU vendors, which they can then use to purchase from an online CashU merchant.
As regional internet usage has been growing at about 40 percent per year, e-commerce spending for MENA is estimated to hit $12 billion in 2014 and $15 billion in 2015, according to a November 2014 press release from CashU’s parent company Souq.com.
The CashU partnership underlines Snorrason Holdings’ commitment to expanding into new markets with localized payment services. “It’s not just about increasing our market share,” clarifies Mr. Snorrason. “It’s about providing payment solutions that are customisable to regional preferences. If an online merchant wants to run a successful online business, they need to offer payment options that are convenient to their buyers. Reducing friction at this level of the payment process gives the buyer confidence in the merchant and leads to higher conversion rates and increased loyalty.”
“The CashU payment option will certainly bring more customers to DalPay. However, bringing DalPay merchants to CashU users will help the region get one step closer to financial inclusion within the global marketplace.”
Snorrason Holdings expects to have the CashU payment option available to DalPay merchants within the first quarter of 2015.