The Middle East and North Africa (MENA) region is undergoing a payment revolution that positions it as a rising star in the global fintech arena. Driven by a young, tech-savvy population and rocketing internet and smartphone penetration, the region is undergoing
a transformation fueled by regulatory innovation, technological advancements, and evolving consumer demands.Akurateco, a global payment software provider with a strong presence in the MENA region, partnered with fintech thought leader Gaurav Sachddeva to dive into the trends and challenges that produced by the MENA phenomenon. Sachddeva, co-chair of the MENA Fintech
Association, co-founder and CEO of The Founders Majlis, and former head of Acceptance and Gateway Solutions at Mastercard MENA East, shared his insights on the dynamics defining this exciting market.Digital payments and MENA transforming The pandemic has significantly contributed to the development of cashless transactions in the MENA region. For payment service providers (PSPs) and fintech companies, this is a great opportunity to make a name for themselves and introduce innovations to
eager users.The MENA digital payments market is experiencing instantaneous growth, driven by the massive shift to cashless transactions accelerated by the pandemic. Demand for convenient, secure, and innovative solutions is growing exponentially.
According to McKinsey, fintech revenues in the MENA region will grow from $1.5 billion in 2022 to $4.5 billion by 2025. In Saudi Arabia, e-commerce experienced a remarkable 60% growth in 2020, and according to the Boston Consulting Group, it is projected
to reach SR50 billion by 2025.The region’s governments and regulators are playing a key role in this growth. For example, Saudi Arabia has a Vision 2030 program aimed at increasing cashless payments to 70% by 2025. It speaks of both ambition and the ability to act. The UAE has an equivalent, Smart Dubai, which stimulates the digital payments ecosystem and encourages the expansion of e-commerce.The younger generation of MENA is extremely interested in the development of alternative payment methods, in particular buy now pay later (BNPL). Companies like Tabby and Tamara are actively using this to achieve success, developing flexible payment options
adapted to advanced users.Thus, the region as jointly created the healthiest and most stimulating environment for the development of PSPs and fintech startups that use best practices and local features for optimal results. This also gives a good start to declare themselves in the
international market.Regulatory innovation drives growthRegulators in MENA are actively promoting effective execution rather than just policy making. This is particularly evident in developing and implementing modern frameworks that encourage innovation and open new business opportunities.For example, the Saudi Arabian Monetary Authority (SAMA) has introduced regulations governing open
