Middle East & Africa Payment Gateway Market Outlook, 2030

The Middle East and Africa (MEA) payment gateway market is undergoing a rapid transformation, driven by digital banking, financial inclusion, and the region’s shift towards cashless transactions. Payment gateways serve as the backbone of online payments, enabling businesses to process transactions securely by bridging merchants, customers, and financial institutions. Initially, the adoption of digital payments in MEA was slow due to a high reliance on cash-based transactions. However, with the expansion of e-commerce, mobile banking, and fintech startups, payment gateways have become an essential component of the region’s financial infrastructure.

Hosted gateways like PayTabs, Telr, and HyperPay are widely used due to their ease of integration and compliance with local regulations, while non-hosted API-based gateways such as Stripe, Checkout.com, and Adyen allow large enterprises and digital merchants to customize payment processing. The demand for secure, fast, and multi-currency payment processing is growing, driven by factors such as rising smartphone penetration, government-led cashless initiatives, and an increasing number of cross-border transactions. Fintech adoption is particularly high in GCC nations, South Africa, and Nigeria, where consumers and businesses are rapidly shifting to digital wallets, contactless payments, and Buy Now, Pay Later (BNPL) services.

Technological advancements, including AI-powered fraud detection, blockchain-based transactions, and biometric authentication, have improved payment security and user experience. Integration with enterprise resource planning (ERP) systems, customer relationship management (CRM) software, and mobile banking applications has allowed businesses to offer seamless payment solutions. Governments across the region are taking steps to regulate digital payments, with Saudi Arabia’s Vision 2030 initiative, the UAE’s fintech regulations, and Nigeria’s cashless policy shaping the industry.

According to the research report "Middle East and Africa Payment Gateway Market Outlook, 2030," the Middle East and Africa Payment Gateway market is anticipated to grow at more than 18.74% CAGR from 2025 to 2030. The region’s market expansion is fueled by a surge in mobile wallet adoption, regulatory support for fintech innovation, and a growing preference for cashless transactions. Key developments in the sector include the UAE's Digital Payments Transformation Strategy, Saudi Arabia’s Vision 2030 financial reforms, and Nigeria’s push for a cashless economy.

Countries such as South Africa, Egypt, Kenya, and GCC nations are at the forefront of adopting digital payment solutions, with businesses and consumers shifting towards seamless online transactions. Leading payment gateway providers in the region include PayTabs, Telr, HyperPay, Checkout.com, and Network International, which offer secure, multi-currency, and Sharia-compliant payment processing. Large enterprises, especially in retail, travel, and financial services, prefer API-based and direct banking payment gateways to ensure customized payment experiences and seamless integration with existing financial systems.

Small and medium enterprises (SMEs), on the other hand, opt for hosted payment gateways due to their cost efficiency, ease of setup, and compliance with local regulations. Payment service providers are expanding their offerings with fraud detection mechanisms, tokenization, real-time transaction monitoring, and AI-driven security features to enhance transaction safety and user trust. The rise of cryptocurrency payment gateways is also gaining attention, particularly in regions with high inflation and currency devaluation. Additionally, fintech startups are collaborating with banks and telecom companies to offer Buy Now, Pay Later (BNPL) services, QR code-based payments, and mobile-first digital banking solutions.

Regulatory frameworks play a crucial role in shaping the payment ecosystem, with central banks enforcing data protection policies, anti-money laundering (AML) laws, and cross-border payment regulations. The demand for seamless, low-cost, and real-time payment solutions continues to grow, making MEA a lucrative market for global and regional payment gateway providers.

Market Drivers

• Growth of mobile money & digital banking: Mobile money and digital banking are transforming financial transactions in the Middle East and Africa. Services like M-Pesa in Kenya and STC Pay in Saudi Arabia enable millions to send, receive, and store money without a traditional bank account. M-Pesa has become a financial backbone in East Africa, allowing payments for goods, services, and even loans. STC Pay expands digital banking in the Gulf, offering seamless payments and remittances. These platforms drive financial inclusion by reaching unbanked populations, providing secure, cashless transactions, and reducing dependency on physical banking infrastructure in remote and underserved regions.
• Government-driven digital transformation: Governments across the Middle East and Africa actively promote digital transformation to modernize economies and reduce cash dependence. Saudi Vision 2030 prioritizes a cashless society, expanding fintech solutions and boosting digital payments. Egypt's cashless initiatives encourage businesses and individuals to adopt electronic transactions, supported by regulations and incentives. Similar efforts are seen in Nigeria and the UAE, where digital banking and e-payment frameworks grow rapidly. These government-led initiatives push businesses, financial institutions, and consumers to embrace digital transactions, fostering innovation, improving financial access, and strengthening economic growth across the region.

Market Challenges

• Lack of financial infrastructure in rural areas: Many rural areas in the Middle East and Africa face severe financial exclusion due to limited banking infrastructure. In remote regions, bank branches and ATMs are scarce, making cash transactions the primary method of payment. Internet connectivity issues and a lack of financial literacy further slow the adoption of digital payments. While mobile money services like M-Pesa and Airtel Money help bridge the gap, infrastructure challenges remain. Governments and fintech companies work to expand mobile banking networks, improve internet access, and educate communities about digital financial services, but overcoming these barriers requires long-term investment and policy support.
• High reliance on cash transactions: Cash remains the dominant payment method in many parts of the Middle East and Africa due to cultural preferences, limited trust in digital systems, and an underdeveloped banking sector. Small businesses and informal markets rely heavily on cash, slowing digital payment adoption. Many consumers hesitate to use mobile money or banking apps due to security concerns and unfamiliarity with digital finance. Governments and fintechs introduce incentives to encourage digital transactions, including tax benefits and lower transaction fees. However, shifting consumer habits from cash to digital payments requires continued awareness campaigns and stronger cybersecurity measures.

Market Trends

• Surge in mobile-first banking & fintech startups: Mobile-first banking and fintech startups are reshaping financial services in the Middle East and Africa. Startups like Nigeria’s OPay and South Africa’s TymeBank offer digital-only banking solutions, making it easier for users to open accounts, transfer money, and access loans via mobile apps. Traditional banks are also embracing mobile-first strategies, launching their own digital banking services to compete with fintech disruptors. The rise of super apps, combining banking, payments, and other financial services in a single platform, is accelerating the shift towards mobile-driven financial ecosystems, making banking more accessible and convenient for millions across the region.
• Expansion of instant payment systems & real-time transactions: Governments and central banks in the MEA region are actively promoting instant payment solutions to enhance transaction speed and financial accessibility. Initiatives like Egypt’s InstaPay, Saudi Arabia’s Sarie, and the UAE’s Domestic Card Scheme are driving real-time payments across retail, business, and cross-border transactions. These systems enable users to send and receive money instantly, reducing reliance on cash and traditional banking processes. The rapid digitalization of payment infrastructure is improving economic efficiency and fostering innovation in the financial sector.

Non-hosted payment gateways are the fastest-growing type in the Middle East and Africa because businesses seek greater control, customization, and seamless integration with their platforms to enhance user experience and security.

The rapid adoption of non-hosted payment gateways in the Middle East and Africa is driven by the increasing digital transformation of businesses, especially in e-commerce, fintech, and online services. Unlike hosted gateways that redirect customers to third-party payment pages, non-hosted solutions allow businesses to keep transactions within their own websites or apps, ensuring a frictionless checkout experience. This is particularly important for large e-commerce platforms, travel companies, and digital service providers that prioritize brand consistency and customer trust.

Countries like the UAE, Saudi Arabia, and South Africa are experiencing a surge in online shopping, leading businesses to integrate non-hosted gateways that support local payment methods, multi-currency processing, and advanced fraud detection. The growing fintech ecosystem, with companies like PayTabs, HyperPay, and Network International, is fueling competition by offering API-driven payment solutions that seamlessly integrate with business infrastructures. Governments are also encouraging digital payments through regulations such as Saudi Arabia’s Vision 2030 initiative, which aims to reduce cash usage and boost electronic transactions.

Businesses prefer non-hosted gateways because they allow them to control the entire transaction flow, implement advanced security measures like tokenization and 3D Secure authentication, and reduce dependency on external processors. The increasing demand for subscription-based services and mobile commerce has made it essential for companies to have payment solutions that provide recurring billing, real-time analytics, and seamless integration with mobile applications.

Large enterprises dominate the Middle East and Africa payment gateway market because they require advanced, scalable, and secure payment solutions to support high transaction volumes, multi-channel operations, and compliance with regulatory standards.

The increasing digitalization of commerce and financial services in the Middle East and Africa has made payment gateways an essential infrastructure for large enterprises, including multinational corporations, telecom giants, oil and gas companies, and leading e-commerce platforms. These organizations handle extensive transaction volumes across different regions, requiring payment solutions that offer high processing capacity, multi-currency support, and robust security measures like tokenization and AI-powered fraud prevention. Banks and financial institutions, which serve as key players in this market, rely on enterprise-grade payment solutions to facilitate real-time payments, international fund transfers, and digital banking services.

Major economies like Saudi Arabia, the UAE, and South Africa are witnessing a surge in digital transactions due to government initiatives promoting cashless economies, such as Saudi Vision 2030 and the UAE’s Smart Government Strategy. Large enterprises invest heavily in payment technology to ensure compliance with regulations like PCI DSS, which mandates stringent security protocols for handling customer payment data. They also demand custom integrations with ERP and CRM systems, allowing them to analyze transaction trends and optimize financial operations.

Unlike SMEs, which often rely on third-party payment processors, large enterprises prefer direct integrations with payment networks and customized payment gateway solutions from providers like Network International, PayTabs, and HyperPay. Their need for omnichannel payment acceptance, spanning online, in-store, and mobile transactions, has further driven the adoption of sophisticated gateway services that support digital wallets, Buy Now Pay Later (BNPL) options, and blockchain-based payments.

The travel and hospitality sector is the fastest-growing end user in the Middle East and Africa payment gateway market due to the region’s booming tourism industry, government-driven initiatives, and the rising adoption of digital payment solutions for seamless, cross-border transactions.

The Middle East and Africa have become major global tourism and business travel hubs, with destinations like Dubai, Saudi Arabia, and South Africa attracting millions of visitors annually. The surge in international travelers has led airlines, hotels, online travel agencies (OTAs), and luxury resorts to integrate advanced payment gateways that support multiple currencies, digital wallets, and secure online bookings. Governments in the region actively invest in tourism infrastructure, such as Saudi Arabia’s Vision 2030, which aims to increase international arrivals, and the UAE’s tourism expansion plans, which have led to a rapid increase in digital transactions.

Payment gateways play a crucial role in enabling instant online bookings, mobile payments, and frictionless check-ins for hotels and travel operators, ensuring that travelers can pay using credit cards, mobile wallets, and alternative payment methods like Buy Now Pay Later (BNPL). Airlines in the region, including Emirates, Qatar Airways, and Ethiopian Airlines, have heavily adopted digital payment processing solutions to enhance customer experience and support direct booking systems with fraud detection capabilities. The rise of online travel agencies like Wego and Almosafer has also driven demand for high-speed, AI-powered payment gateways that offer tokenization, chargeback protection, and seamless refunds for cancellations.

Additionally, religious tourism in Saudi Arabia, including Hajj and Umrah, has seen an increasing reliance on digital payments for pilgrimage bookings, accommodations, and transport services. Hospitality businesses in the region are also prioritizing contactless payments, allowing travelers to pay via NFC-enabled cards and QR codes for added convenience.

Saudi Arabia is leading the Middle East and Africa payment gateway market due to its rapid digital transformation, strong regulatory support for fintech, and a booming e-commerce ecosystem fueled by Vision 2030 initiatives.

Saudi Arabia has emerged as a dominant player in the region’s payment gateway market, driven by a combination of government-led digital initiatives, a tech-savvy population, and the rapid expansion of online businesses. The Saudi Central Bank (SAMA) has played a crucial role in shaping a cashless economy by introducing regulations that encourage fintech innovation, leading to a surge in digital payment solutions. The country has a well-established digital infrastructure, with high internet and smartphone penetration, enabling seamless adoption of online transactions.

The introduction of Mada, the national payment network, has significantly boosted electronic payments by allowing seamless integration with international payment providers like Visa, Mastercard, and Apple Pay. Saudi Arabia’s e-commerce market is thriving, with platforms such as Noon, Amazon Saudi Arabia, and local retailers driving an increasing demand for secure and efficient payment gateways. The rise of Buy Now Pay Later (BNPL) services, powered by companies like Tamara and Tabby, has further accelerated digital transactions, especially among younger consumers.

The hospitality and travel industry, fueled by religious tourism for Hajj and Umrah, has also contributed to the adoption of advanced payment solutions, as millions of international visitors require secure, multi-currency payment options. The government’s Vision 2030 initiative actively promotes digital transformation, aiming for 70% cashless transactions by 2030, pushing banks, fintech startups, and payment service providers to develop cutting-edge, AI-powered payment processing systems. Saudi Arabia’s investment in cybersecurity and fraud prevention ensures consumer trust, making digital transactions more secure and reliable.

Considered in this report

• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report

• Payment Gateway Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type

• Hosted
• Non-Hosted

By Enterprise Size

• Large Enterprises
• Small & Medium Enterprise

By End user

• BFSI
• Media & Entertainment
• Retail & E-Commerce
• Travel & Hospitality
• Other

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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