Building a future ready payments platform in Middle East

Cash payments have traditionally dominated the Middle East region. However, there has been a steady shift towards digital payments as end customers expect this mode to be more flexible, efficient, and customer centric.

Some of the factors contributing to this growth include the rising proliferation of smartphones, internet penetration, and the adoption of modernized technology. The ongoing COVID-19 pandemic has further accelerated the adoption of digital modes of payments as more people are migrating to digital banking channels due to their flexibility and ease of use. This has given rise to the emergence of new players in the market that are disrupting the payments landscape.

To leverage the rising demand for digital banking solution, financial institutions in the Gulf Cooperation Council (GCC) are collaborating with technology solution providers. The Middle East digital payments market is expected to register an estimated CAGR of 5-6% for the period 2021 - 2025.

This report, commissioned by HPS and produced by IBS, outlines the trends, challenges, and opportunities around payments in the Middle East region and provides analysis and recommendations.