Digital Payments Rebuild Financial Systems in the Middle East

Across the Middle East, governments, banks and global payments firms are treating digital payments as foundational infrastructure for future economic activity. The focus is not limited to consumer convenience or incremental efficiency gains. There’s a burgeoning broader effort to build systems that can support cross-border trade, capital flows, remittances and regulatory oversight at scale.

The World Economic Forum’s analysis of digital payments adoption in the Middle East points to a region positioning itself for long-term structural change. Data from the Forum indicates that digital payment transaction volumes across the Middle East and North Africa are projected to continue growing at double-digit rates, supported by mobile penetration, government-backed payment initiatives and expanding digital commerce.

By way of example, the  In 2022, real-time time payments in the region stood at $675 million; by 2027, they’re expected to reach $2.6 billion, per the WEF.

PYMNTS Intelligence data, available here in our take on global shopping habits, indicates that digital experiences are scaling online and physical channels in the region.  Data gleaned from the United Arab Emirates show that there’s been 55% of surveyed consumers have embraced Click and Mortar activity — higher than the global average. Generally speaking, Click and Mortar shoppers skew younger, as PYMNTS Intelligence has found, with significant embrace by Gen Z and millennial shoppers. The demographic data from the WEF indicates that than half of the population is under 25.

Interoperability, regulatory alignment and data visibility are identified as prerequisites for unlocking future economic activity across these nations.

PYMNTS coverage indicates that global firms see opportunity in the region’s approach to digital payments, with a move towards that interoperability and scale. PayPal’s $100 million investment aimed at Middle East and Africa digital commerce reflects confidence in the region’s ability to support cross-border payment activity over time, not a short-term expansion play.

Such investments are aligned with policy efforts across the region to modernize payment rails, expand acceptance infrastructure and improve settlement and reconciliation processes. For financial institutions, this alignment reduces uncertainty and increases confidence that digital payments systems will be durable and bank-grade.

Payments Infrastructure as an Economic Enabler

Digital payments infrastructure enables more than faster transactions. It creates standardized rails that support remittances, merchant payments, government disbursements and cross-border settlement.

It also generates data that financial institutions and regulators use to assess risk, manage liquidity and enforce compliance.

Syria offers a unique example of what digital payments infrastructure can unlock once access is restored more fully in post-sanctions environment.

Sanctions imposed beginning in 2011 limited Syria’s participation in global banking and payments networks, constraining remittances and foreign capital flows. PYMNTS coverage of Visa-related developments and Syria’s reentry into the Swift financial messaging network highlights how restoring access to standardized payment rails is a prerequisite for rebuilding financial activity. As reported, Visa will work with licensed financial institutions to develop a payments foundation that includes payment cards and digital wallets that use global standards; with merchants to enable acceptance through the Visa Acceptance Platform.

There will also be joint efforts with local entrepreneurs to build e new payment solutions and connect them with the company’s regional and global FinTech partners, Visa said earlier this month.

In post-sanction economies and in nations broadening their modernization efforts digital payments can provide the visibility public and private markets need to assess risk, move capital and reengage. They can also lower barriers for remittances and trade payments that are essential in early stages of economic normalization.