The MEA Online Payment Gateway To Reach $21 Billion by 2028
Saudi Arabia, Egypt, and UAE are the leading ecommerce markets in the region and thus, offer lucrative opportunities for the online payment gateway providers. According to RationalStat’s analysis, in the Middle East & Africa, online payment gateway is expected to reach $ 21 billion by 2028 from $ 3 billion in 2020, growing at a […]
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Saudi Arabia, Egypt, and UAE are the leading ecommerce markets in the region and thus, offer lucrative opportunities for the online payment gateway providers.
According to RationalStat’s analysis, in the Middle East & Africa, online payment gateway is expected to reach $ 21 billion by 2028 from $ 3 billion in 2020, growing at a CAGR of 28 per cent from 2020 to 2028.
An online payment gateway facility authorises credit or debit cards to process the transaction and complete the payment stage to the merchant through the merchant’s website/mobile app.
Saudi Arabia, Egypt, and UAE are the leading ecommerce markets in the region and thus, offer lucrative opportunities for the online payment gateway providers.
The regional ecommerce market reached $ 31 billion in 2021 from $ 22 billion in 2020. The ecommerce market in the Middle East and North Africa (MENA) is anticipated to touch $ 48 billion by the end of 2023. Saudi Arabia is leading the way in terms of regional ecommerce growth with a healthy CAGR of 40per cent, followed by the UAE at 38 per cent CAGR.
Mirroring the global market trend, the online payment gateway market in the Middle East & Africa (MEA) is expected to witness a hefty growth rate during the coming period. The gap between digital payments and conventional payments presents a tremendous opportunity for the growth of the online payment gateway market. The adoption of digital payments by small and medium-sized enterprises in the region is expected to support the demand for online payment gateways over the coming years.
Saudi Arabia has set an ambitious target to achieve more than 70 per cent non-cash or digital transactions by the end of 2030, opening promising avenues for the players engaged in the MEA online payment gateway market.
Digital payments in the two leading economies accounted marginally for 23 per cent and 18 per cent of the total transactions in the UAE and Saudi Arabia, respectively. In Egypt, nearly 65 per cent of the population remains unbanked, and the government and central bank intend to move towards financial inclusion and upgrade payment systems.
Leading companies are adopting various strategies to grow their client base and increase their market foothold. Some of the notable events that happened in the MEA online payment gateway market in the last few years include:-
- In March 2022, FintechCashier Group announced an investment of $ 11 million into the MENA region, creating a financial gateway centre based in Bahrain
- In January 2022, Noon ecommerce launched Noon Payments’, an integrated online payment gateway in Egypt to help small and medium businesses.
- In November 2021, India-based payments and banking solutions provider Cashfree Payments invested nearly $ 15 million in Saudi Arabia and UAE-based payment service provider, Telr.
- In December 2021, Saudi Arabia’s local payment gateway HyperPay obtained a permit from Saudi Payments to activate new “Mada” services for its merchants
