Even though times are changing, a large population of the Middle East still believes in making cash transactions.
Over the past few years, the advancements in digital payment platforms pushed people to use online payment methods provided by digital transformation company.
This decision was further fuelled by the 2019 pandemic.
In a recent survey from McKinsey, 58% of consumers from the Middle East preferred digital payments, and only 10% longed to make payments in cash.
The Need of Digital Transformation for the Oil and Gas Industry
With Oil and Gas as its significant industry, the Middle Eastern region must advance this sector with digital transformation services.
The industry is not new to the digital world and incorporated it in the early 1980s for safety, resource calculation, and operational efficiencies.
While they hopped onto the digital wagon early, the oil and gas companies eventually slowed down towards adopting path-breaking digital technology.
With no digital strategy, action plan, and capabilities, these companies are now far behind others.
The downtrend of this oil and gas industry has forced the FinTech leaders in the middle east to rethink their acceptance of technology.
Some reasons why this sector needs to accept the digital platform faster are:
1. Quick changing technology
The growing techniques, storage technologies, assistance with mobility, along with the feasibility of undertaking data analysis are rapidly pushing companies to accept the new digital era.
Growth in penetration of mobile phones results in more digital payment options.
Shortly, more than 50% of the Middle Eastern population will own a mobile connection and gain access to a faster way of making payments with the help of digital mobile apps developed by mobile app development company. Many such methods already exist and there is a push from the government as well to incorporate these.
2. Supply chain disruption
Due to the political and social unrest in the past few years, the Middle Eastern oil and gas industry has seen many ups and downs.
With processes getting hampered and delay in payments, oil and gas industry suffers the most.
Adopting digital Solutions for Oil and Gas Industry to track the supply chain would reduce the dependency on the ground staff and lessen such problems
3. Customer demands
Customers are now more interested in the level of engagement and speed of delivery of the seller than before.
With active participation in environmental issues, many consumers demand process transparencies from companies.
All these issues push organizations towards a digital presence with the help of digital transformation company.
4. Increase in Mobile Financial Services
The Middle East now has new mobile financial services provided by mobile app developers such as Careem pay.
STC pay is also a new payment method from a leading telecommunications partner in Saudi Arabia.
Using these methods, customers gain the flexibility to pay for restaurant bills and store purchases.
For an established organization to incorporate this technology, is to move past many barriers.
Some of these barriers include the lack of digital knowledge, lack of sharing of knowledge, and no digital talent.
The incorporation of digital features disrupts a stable organization.
It takes patience and time to convert it into a full-blown process.
Many aspects need to get a digital makeover. This change would provide companies with interconnected links, easy access to integrated data, and result in impactful service.
The new era in digitalization is transforming the way payments get processed.
With the Middle Eastern market showing a drastic shift to digital banking methods, this digital transformation is knocking on the doorstep of the Oil and Gas industry as well.
As per a McKinsey report in 2021, payments via card rose to 70% over the previous year, of 2019.
While educating the customer on the benefits of cashless transactions helped in this front, the 2019 pandemic also played a pivotal role in laying out the future of digital banking platforms.
Best practices to Digitize payments in the Oil and Gas Industry
To better incorporate the benefits of the digital world towards the progress of the Oil and Gas industry, the below must stay as focus points.
1. Leverage Blockchain
This is one of the newest methods provided by blockchain development company for payments and it does not only refer to cryptocurrency.
Blockchain transactions come from a secure global network.
These payments do not function from a single point hence any chance of failure is minimized.
Blockchains work on a distributed line and are therefore fast, safe, and increase anonymity.
This reduces the number of manual steps required in the refined trading of products.
A report from Deloitte states that this method allows the flow of consolidated data to all partners and therefore reduces times spent in the reconciliation of volume differences and prices.
2. Promote FinTech Partnership
The finance industries’ adaptation of technology makes functioning easier and fast.
The payment market in the Middle East only incorporated fintech solutions alongside banks post the regulatory changes in UAE in 2021 and Saudi Arabia in 2019.
Companies working in this segment are likely to gain big from this regulation.
Many banks and fintech solutions companies plan on working together to develop a financial ecosystem that could provide oil and gas industry all digital transformation services like data integration, user engagement, organization, and banking services.
3. Onboarding more credit card companies
Another massive way to transform the payment method in the oil and gas industry is to onboard as many credits card companies as possible.
This would allow flexibility to the consumer. Incorporating secure and quick transaction processes will ensure repeat customers and create a good name in the market.
The concept of E-wallets is convenient to the end consumer.
Launching an E-wallet by e-wallet app development company in association with multiple banks allows flexibility to the customer.
The availability of a safe and secure platform brings forward more customers which in turn increases profits.
As per a report in Finaria, 2021 will see the E-wallet industry touch the 2.4 trillion-dollar mark.
This growth accounts for a 24% rise, on a global level, over the year 2020.
5. Increase POS
Increasing the point of sales touchpoints at refilling stations is an ideal method to adopt for promoting digital Solutions for Oil and Gas Industry.
Incentivizing the use of the card to make payments becomes useful to push the common man’s mentality to use digital payments methods provided by digital transformation agency.
6. Incorporation of conversational payment options
Customers now demand a 24X7 availability from the seller’s end. When an industry successfully harnesses this method, they gain the trust of their customers.
Evan Kohn from Qatalog says that with proper PCI compliance, data redaction of sensitive information, and encryption, this is possible.
The use of Artificial intelligence helps to create the “always available” option for sellers.
7. Cloud computing for personalized services
Working with cloud networks presents the possibilities of working with rich data.
Capitalizing data across digital ecosystems is the way forward for this industry.
The use of cognitive computing to create payment methods that work on dynamic optimization creates value for customers.
The end-user wishes for personalized services. Digital transformation solutions are the most cost-effective way to achieve this.
Summing it Up
Keeping the customer requirement and the technology advances in mind, digital transformation services is the need of the hour for this sector.
Companies now work with a customer-centric approach as opposed to a product-centric one.
The Oil and Gas industry needs to incorporate a digital solution for oil and gas industry and rope in the best Fintech company.
Mastering digital transformation is a new process for many, and every organization must work only with the best digital transformation companies in the world.
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