The cross-border payment industry in the Middle East is in a stage of rapid development, and its market size is continuously expanding.
I. Market Size and Growth Trends
The cross-border payment industry in the Middle East is in a stage of rapid development, and its market size is continuously expanding. In 2024, the cross-border payment transaction volume in the Middle East reached 480 billion US dollars, with the B2B model accounting for 72%. In 2025, the market size of the cross-border payment industry in the Middle East has reached 68 billion US dollars, with a compound annual growth rate of 14%. It is expected that by 2032, the cross-border payment market in the Middle East will exceed 1.2 trillion US dollars, with a compound annual growth rate of up to 12.3%. Energy transition and digital economy have become important drivers of market growth. The "Vision 2030" of Saudi Arabia and the "D33 Plan" of the United Arab Emirates have pushed the non-oil economy to exceed 50%, and the digital economy has achieved an annual growth rate of 28.5%, giving rise to payment demands for cross-border trade and infrastructure financing. In 2025, the e-commerce scale in the Middle East reached 82 billion US dollars, and during Ramadan, 95% of consumers chose online shopping. Live-streaming e-commerce (such as TikTok Shop) drove an increase of 50% in payment transaction volume.
II. Diversified Payment Methods
(1) Card Dominance
In the non-cash payment scenarios in the Middle East, bank cards hold a dominant position. However, Middle Eastern consumers are accustomed to using local card organizations, such as Mada in Saudi Arabia and KNet in Kuwait. Taking Saudi Arabia as an example, the penetration rate of Mada cards is relatively high and it holds an important position in the local payment market. These local card organizations not only promote the development of the domestic payment industry but also ensure the country's data security to a certain extent. Meanwhile, some Gulf countries, although highly internationalized, also apply international card organizations, but they are also actively establishing their own card organizations, reflecting the region's emphasis on payment localization and data regulation.
(2) The Rise of Electronic Wallets
The development of electronic wallets in the Middle East is going well, but the situations vary greatly among different countries. The STC Pay wallet launched by Saudi Telecom holds a leading position in Saudi Arabia and obtained a digital banking license in June 2021. In the United Arab Emirates, there are multiple electronic wallets coexisting, including PayBy launched by local fintech companies, Payit from Abu Dhabi First Bank, as well as internationally renowned payment services such as Google Pay, Samsung Pay, Apple Pay and AliPay. In North African countries like Egypt, due to the relatively low income levels of some people, they are not included in the banking system. Electronic wallets have become an important tool for them to conduct online transactions. Wallets like Fawry and Vodafone Cash are more popular.
(3) Cash on delivery still accounts for a large proportion
Currently, in the Middle East, COD (Cash on Delivery) accounts for approximately 75% of the overall e-commerce orders. The proportion for standalone websites and web-based social e-commerce is even higher. Egypt is the second-largest country in the world that relies heavily on paper currency. At least 67% of Egyptians still do not have bank accounts, and the penetration rate of credit cards is only 3%. The vast majority of Egyptian consumers choose "Cash on Delivery" when shopping on e-commerce platforms. Although this payment method reflects to some extent consumers' concerns about the security of online payments and the characteristics of local logistics and e-commerce development, it also restricts the payment efficiency and the further development of the e-commerce industry.
(4) Real-time payment has seen rapid growth
According to the "2024 Real-Time Payment Golden Hour Report" by ACI Worldwide and GlobalData, the Middle East has become the fastest-growing real-time payment market globally for the second consecutive year. In 2023, the transaction volume of the real-time payment market in this region soared by 33%, reaching 855 million transactions. The report predicts that by 2028, the transaction volume of real-time payments in the Middle East will increase by 28.8% to 3 billion transactions. In 2023, Oman, Kuwait, and Qatar, along with Saudi Arabia, Bahrain, and the United Arab Emirates, launched national real-time payment plans. With all six countries of the Gulf Cooperation Council (GCC) now conducting real-time payment projects, it is expected that the transaction value of real-time payments in the Middle East will increase from 230 billion US dollars in 2023 to 903 billion US dollars in 2028. Among them, Bahrain has performed outstandingly in real-time payment applications, with real-time payments accounting for nearly 50% of the total payment volume. It is predicted that by 2028, real-time payment services will account for 77% of all transactions in the market.
III. Market Opportunities
(1) Economic Transformation and Policy Support
Various countries in the Middle East have proposed plans for economic diversification and are vigorously promoting the development of the digital economy. In the "Vision 2030", Saudi Arabia set a goal of making digital payment account for 70% of the total by 2025. Its financial services industry is undergoing profound changes and mobile payment is developing rapidly. Institutions predict that from 2024 to 2032, the mobile payment market size in Saudi Arabia will grow at a compound annual growth rate of 10.62%. Countries such as the United Arab Emirates have also introduced a series of policies to support the development of fintech, providing broad development space for payment enterprises.
(2) Cross-border trade and the development of e-commerce
The Middle East enjoys a strategic location and serves as a crucial hub connecting Asia, Europe and Africa. Cross-border trade is highly active there. With the rise of e-commerce, more and more consumers are opting for online shopping. By 2025, the e-commerce market in the Middle East is expected to reach 82 billion US dollars. During Ramadan, 95% of consumers choose to shop online. The development of live-streaming e-commerce has further driven the growth of payment transaction volume. The prosperity of cross-border e-commerce requires efficient and secure payment solutions, which provides an opportunity for payment companies to expand their business.