Demand for digital services is fueling a payment revolution

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Just last week, we looked into the E-Commerce industry of MENA in 2021. E-commerce as an industry is often looked at as a tech-disrupter of the traditional retail model. However, it is often understated how the industry played a larger role in the growth of the startup space. It is no secret that E-commerce startups are the first arrivals to any nascent startup scene and amongst the first to attract VC backing. And surely, successful online marketplaces were the early signs of the tech boom in MENA and across all Emerging Venture Markets. As the industry in MENA continues to grow and gain more investor attraction, we can observe an obvious growth in funding from 131M in 2019 to almost $300M by Q3 2021

In parallel, the FinTech industry was also following a similar trajectory. Compared to 2018, capital invested in Fintech startups has experienced an impressive 559% surge. In 2021, up until November, Fintech startups in MENA raised over $426.1M as a testament to the growing industry. A lot of the industry’s growth this past year can be attributed to online payments. Setting up the infrastructure for online payments, and exploring avenues in payment solutions drove a majority of fintech innovation in 2021. In fact, the top deals closed this year across MENAPT  focused on such innovation, like the UAE-based Tabby, Turkey-based Colendi, Pakistan-based Tag, and Egypt-based Paymob

We invited Mo Ali Yusuf the MENAP Regional Manager at to give us insight into the potential of this digital elevation in Emerging Venture Markets. As the UK-based FinTech provides digital payment solutions globally, they survey more than 10,000+ users in MENAP to bring out key takeaways, from their recent report “MENA’s Digital Transformation”: 


All you need to know on MENAP's digital payment evolution. Download the Free Report by

Fragmented payment infrastructure and underdeveloped regulations have traditionally hampered efforts to build cohesive online marketplaces worldwide. Nevertheless, citizens and residents in the Middle East, North Africa, and Pakistan (MENAP) region increasingly see themselves as part of a global digital economy. The borderless nature of e-commerce is indeed forging a new level of international integration.

This has a profound impact on the socio-economic outlook for the region as consumers demand more digital services and governments seek to transform their economies. According to a recent study by, approximately one in four consumers in countries like the UAE and Saudi Arabia believe that the most important key to achieving their country’s national economic transformation goals will be greater “internationalization” — economically, politically, and in business regulation.

Moreover, people increasingly see commerce as vital to such internationalization. Our research reveals that the Gulf region alone had a 214 percent year-on-year increase in cross-border online sales by mid-2020. About a third of consumers in MENAP overall cite cross-border shopping as the number one reason for shopping online. According to World Bank data, remittances across MENA had risen to a staggering USD 56 billion by the end of 2020. With several global events taking place in the region, such as Expo 2020 and the Qatar World Cup 2022, there will be even greater catalysts for deeper internationalization and lasting economic ties set on the world stage.   

All you need to know on MENAP's digital payment evolution. Download the Free Report by

Enabling best-in-class local payments
This transformation is being underscored by a budding fintech and digital commerce ecosystem. An array of innovative FinTechs are now leading an evolution in the region’s economy, especially when it comes to digital payments. Digital payments such as e-wallets, apps, and buy now and pay later (BNPL) services are increasingly prevalent.

Let’s look at the BNPL market as a specific example of the region’s fintech maturity. Saudi payments firm Tamara was the first BNPL company to be enrolled in the Saudi Central Bank’s regulatory sandbox program to boost FinTechs and startups. The startup has quickly established itself as a market leader and signed up over 1,000 merchants across the region. Earlier this year, it secured a record-breaking funding round of USD110 million, led by  

In this regard, the private sector is vital in helping to strengthen the underlying payments infrastructure required for digital businesses to thrive. This is what we do at Launched in 2012, we're a truly global payment solutions provider with a team of over 1,500 people across 19 offices worldwide — including Dubai, Riyadh and Karachi. has supported businesses across the region from day one. We recognized their immense potential and made it our mission to give them access to the best-in-class digital payments they required to unlock it. 

We’ve processed more than 400 million e-commerce transactions in the region since 2019, offering all major international credit and debit cards, digital wallets like Apple Pay and Google Pay, and popular local payment methods, including Fawry, mada, Knet, QPay, and more. That's why we're trusted by companies like OSN, AlShaya, Careem, and tajawal to power their payments and help them unlock more growth. 

All you need to know on MENAP's digital payment evolution. Download the Free Report by

Transforming financial services
As fintech funding flows throughout the region, governments see the digitization of economies and boosting digital payment ecosystems as key to their economic transformation goals. Many are keen to replace regulatory barriers that may have hampered progress in the past. Regulators such as the UAE Central Bank and the Saudi Arabia Monetary Authority (SAMA) now see themselves as enablers of innovation. Such entities have already taken steps to advance the regional financial landscape by transforming regulations to be fintech friendly, creating regulatory sandboxes, and launching accelerators.

These developments suggest that the rate of digitization will rise quickly. That will provide real value to consumers and businesses alike. Deepening access to financial services — such as delivering mobile banking services to the unbanked — has been shown to significantly raise individual incomes and national economic output. It is perhaps no surprise then that 36 percent of those in the UAE, 45 percent of those in KSA, and 48 percent of consumers in Jordan believe that further digitizing their economy and more digital skills education is fundamental to achieving their nation’s economic transformation plans.

While challenges certainly exist in unlocking the full potential of digital commerce in the region, the opportunity has never been greater to forge a new level of regional and global integration — one that has been missing for far too long.

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