Middle East Online Payment Methods 2023

Middle East Online Payment Methods 2023

As of 2023, digital wallets constitute approximately 20% of the total online spending in the MENA region: new yStats.com report.

Card payments are the dominant force, but alternative payment methods are on the rise in the Middle East

Notably, digital payment adoption is high in countries like the UAE, Israel, and Saudi Arabia, where between 7 and 9 out of 10 adults embraced digital payments in 2022. In contrast, Jordan shows a lower double-digit adoption rate, highlighting variations in digital payment development within the region.

When it comes to online shopping in Saudi Arabia, there is a relatively even distribution between card and alternative payment methods. In Israel, cards play a significant role in online payments, followed by e-wallets. Moreover, the card payments market in Saudi Arabia is projected to experience a double-digit CAGR by 2027. As such, card payments maintain their dominance as a leading online payment method in the Middle East, while digital wallets account for about a fifth of the total online spending in the MENA region.

A notable trend is the anticipated double-digit CAGR in real-time payments

While card payments remain prominent in major Middle Eastern countries, alternative payments are gaining ground. This shift is evident in the increased use of real-time payments. For instance, in Saudi Arabia, the number of real-time payment transactions is expected to more than triple between 2022 and 2027, showing a double-digit CAGR. Furthermore, in the UAE, real-time payment transactions are projected to nearly quadruple during the same period, with an even higher double-digit CAGR.