Cart Abandonment in GCC E-Commerce: Fixing Checkout Drop-Off with Device Binding and Passkeys
TLDR
The Gulf’s e-commerce sector is booming — led by the UAE and Saudi Arabia — but checkout abandonment remains one of its most persistent challenges. OTP delays, repeated logins, and weak authentication continue to break user flow, especially on mobile. As digital payments expand under tighter regulation, merchants and gateways are discovering that secure, native-app authentication can actually reduce friction. Device binding and passkey-based authentication are now key to improving both compliance and conversion. Ideem’s Zero-Trust Secure Module (ZSM) and Passkeys+ help e-commerce platforms, banks, and wallets in the GCC replace OTP-heavy flows with deterministic, device-bound verification that keeps users in-app and checkouts uninterrupted.
The GCC’s e-commerce surge and its friction problem
The GCC’s e-commerce market is growing faster than nearly any region worldwide, driven by mobile-first consumers, rising card penetration, and supportive regulatory frameworks. The UAE, in particular, leads the region with one of the world’s highest online shopping adoption rates.
But as payment options multiply — cards, wallets, BNPL, instant transfers — so do the points of friction. Every time users switch screens to enter an OTP, refresh an SMS, or wait for a verification code, drop-offs spike. OTP-based authentication may appear simple, but in high-speed, mobile-heavy markets, it’s the single biggest contributor to cart abandonment.
The GCC’s growth potential is now limited not by demand, but by the gaps between security and user experience.
The hidden link between authentication and abandonment
Checkout friction isn’t only a UX issue — it’s an authentication problem. Traditional OTP systems disrupt the purchase flow and rely on external delivery networks that are unreliable across borders or during peak hours.
For users, this means:
- Missed OTPs or delays breaking checkout flow
- Redundant authentication across multiple sessions
- Distrust caused by phishing-style code entry screens
For merchants, it means lower completion rates, abandoned carts, and higher false declines. A user who trusts a platform enough to fill their cart is already primed to convert — until authentication slows them down.
When the same security layer meant to prevent fraud starts preventing revenue, it’s time for a new model.
Device binding: turning trust into a performance advantage
Device binding transforms authentication from an external process into a native capability. It ties a user’s identity directly to a registered device using cryptographic keys — eliminating the need for codes, redirects, or external verification channels.
Here’s what that means in practice:
- The device itself becomes a secure credential.
- Authentication happens instantly within the app.
- Each transaction carries deterministic proof of origin, not a probabilistic signal like OTP delivery.
For e-commerce platforms and payment gateways, this provides both compliance-grade security and speed. Returning customers can authenticate seamlessly via biometrics or passkeys, while risky or new devices can trigger extra verification automatically.
Ideem’s ZSM and Passkeys+ integrate this logic into existing payment flows, ensuring security lives inside the app — where users already trust the brand experience.
Deterministic identity: the foundation of frictionless checkout
Unlike behavioral or probabilistic models that infer trust, deterministic authentication verifies it. By knowing exactly which device initiated an action, institutions can approve legitimate transactions instantly and flag anomalies without blanket friction.
This is critical in the GCC, where real-time payments, BNPL approvals, and wallet top-ups happen in seconds. Deterministic identity ensures that authentication keeps pace with transaction speed.
For example:
- A returning shopper using the same phone to complete a purchase authenticates silently.
- A new device triggers biometric or passkey verification before approval.
- Suspicious device behavior, such as rooted OS or emulator use, automatically blocks the attempt.
The result is precision: friction only appears when it’s justified.
Why native-app credentials are the future of GCC authentication
The GCC’s digital economy is built on mobile-first experiences. Yet many e-commerce flows still depend on web-based OTP prompts that break native journeys.
Native-app credentials solve that problem. They allow authentication to happen in the same app where the user browses, pays, and confirms — without leaving the environment or waiting for external codes.
With device-bound passkeys, credentials are:
- Local — stored securely on the device, not in the cloud.
- Phishing-resistant — can’t be reused or intercepted.
- Compliant — aligned with CBUAE expectations for multi-factor, device-level authentication.
For GCC e-commerce, this means higher conversion, fewer abandoned carts, and greater consumer confidence.
Turning compliance into conversion
The GCC’s regulators are encouraging stronger authentication not to slow payments down, but to make them safer and more sustainable. The CBUAE’s frameworks for retail payments and stored value facilities call for secure, multi-factor verification that protects both merchants and users.
Institutions that adopt device-bound authentication gain more than compliance — they gain measurable commercial advantage:
- Higher checkout completion rates through faster verification
- Lower fraud risk from session hijacks and cloned devices
- Improved trust in regional payment ecosystems
- Regulatory readiness for evolving authentication standards across the GCC
Ideem’s ZSM and Passkeys+ unify these benefits, allowing merchants and gateways to comply with regional rules while improving KPIs that matter — approval rates, transaction speed, and user satisfaction.
A readiness checklist for GCC e-commerce teams
- Identify checkout pain points
Measure where drop-offs occur during authentication or OTP input. - Implement device-bound credentials
Link each user’s account to a trusted device, verified cryptographically. - Adopt deterministic identity
Replace probabilistic trust scoring with verified device-level authentication. - Enable native-app passkeys
Keep users inside your app during checkout for faster, safer transactions. - Deploy Ideem’s ZSM and Passkeys+
Combine compliance, security, and conversion optimization across GCC payment flows.
The path forward
The GCC’s digital commerce success will depend on how fast its security systems can evolve without compromising speed. OTPs and static logins belong to a slower era of payments. The next phase — already taking shape in the UAE — is defined by device trust, cryptographic assurance, and invisible authentication.
Ideem’s Zero-Trust Secure Module and Passkeys+ deliver exactly that. By binding security to the device and authentication to the user’s intent, they make checkout smoother, safer, and compliant by design.
In the Gulf’s digital economy, reducing cart abandonment isn’t just a UX challenge — it’s an authentication upgrade.
Sources
- Central Bank of the UAE – Retail Payment Services and Card Scheme Regulation
https://www.centralbank.ae/en/legislation-and-regulation - Arabian Business – UAE’s E-Commerce Market to Reach $17 Billion by 2025
https://www.arabianbusiness.com/industries/retail/uae-ecommerce-market-2025 - The Paypers – Authentication and Conversion in GCC Digital Commerce
https://thepaypers.com/expert-opinion/authentication-and-conversion-in-gcc-digital-commerce--1262039 - PYMNTS – Why OTP-Based Authentication Fails in Mobile E-Commerce
https://www.pymnts.com/news/fraud-prevention/2024/why-otp-based-authentication-fails-in-mobile-ecommerce/ - Ideem – Passkeys+ and ZSM for Frictionless, Device-Bound Authentication
https://www.useideem.com/passkeys-plus