Accepting payments in the Middle East can open up your business to a growing market. The Middle East’s ecommerce market is expected to reach a volume of $50 billion in 2025, more than double its 2020 value. Businesses that enter the region’s payment space should be prepared to offer a variety of payment options and customize the customer experience to the local population.

Below, we’ll explore strategies for businesses that want to accept payments in the Middle East, including:

• Diversifying payment methods
  
• Localizing the customer experience
  
• Tightening payment security
  

The state of the market

The Middle East’s payment market is quickly developing, driven by technological advancements and shifts in customer behavior. Although cash is still used across the region, due in part to underdeveloped infrastructure and underbanked populations, recent government and regulatory initiatives have encouraged digital payments.

Members of the Gulf Cooperation Council (GCC)—the United Arab Emirates (UAE), Bahrain, Saudi Arabia, Oman, Qatar, and Kuwait—conduct economic relations collectively and coordinate frameworks regarding factors such as value-added tax (VAT) rates. The Middle East’s payment security guidelines follow global best practices for mitigating the risk of fraudulent payments, because addressing issues such as cybersecurity and regulatory compliance remains important for sustaining growth in the digital payment market.

Payment methods

Customers in the Middle East use various payment methods that range from the traditional to the technologically advanced. Here are the most common payment methods for both in-person and online transactions.

Current usage

Cash is commonly used for point-of-sale (POS) payments: as of January 2025, it accounts for 22% of B2C transactions in Saudi Arabia and 23% of them in the UAE.

Credit cards and digital wallets are often the most popular payment methods for ecommerce transactions and made up the majority of ecommerce transaction value in both the UAE and Saudi Arabia in 2022. Digital wallet adoption is increasing, with the digital wallet market in the Middle East and Africa forecast to rise from about $20.5 billion in 2023 to about $103.8 billion by 2032. International wallets like Apple Pay, Google Pay, and Samsung Pay are widely used, as well as local players like Etisalat Wallet.

Buy now, pay later (BNPL) has also gained traction in the Middle East. In Israel, for example, BNPL payments are expected to grow by about 36% annually to reach almost $1.4 billion in 2025. Regional BNPL providers include Sunbit, Tamara, and Taly.

Popular B2C payment methods in the Middle East

• Credit cards
  
• Digital wallets
  
• BNPL
  

Popular B2B payment methods in the Middle East

• Credit cards
  
• Bank transfers
  
• Wire transfers
  
• Direct debits
  

Emerging trends

Mastercard’s New Payments Index 2022 found that 85% of people in the Middle East and North Africa had used at least one emerging payment method in the past year, including digital wallets, BNPL, biometrics, and payment-enabled wearable tech devices. For people in the Middle East who seek an alternative to the traditional financial system, which can be unstable or restrictive, digital currencies present a solution. The UAE ranked third in the world for cryptocurrency adoption in the 2023 Crypto Wealth Report, although the general population’s relationship with digital currencies remains cautious.

Ease and friction of entry

Accepting payments in the Middle East comes with unique considerations regarding taxes, chargebacks, cross-border payments, and payment security measures. Here’s what businesses should know.

Taxes

GCC member states impose a 5% VAT on most goods and services. Other countries have their own VAT rates. Israel, for instance, imposes an 18% VAT. Customers pay this tax as part of their purchases and businesses are responsible for collecting and remitting it to the government.

Chargebacks and disputes

Consumer protection regulations give customers in the Middle East the right to dispute charges on their credit and debit cards. Card networks, banks, and financial institutions typically lead the chargeback process. The business is notified when a customer disputes a transaction, and the funds are usually held temporarily while an investigation takes place. Because guidelines tend to favor customer interests, the business must validate the transaction’s legitimacy.

International payments

Cross-border payments present their own potential obstacles. Consider the following factors if your business plans to accept international payments.

• Currency conversion
  Since each country in the Middle East uses its own currency, currency conversion is necessary when you accept cross-border payments. For business customers, financial institutions often add a markup to the interbank rate, the baseline rate for currency conversion at which banks lend to each other. Third-party payment providers like Stripe can handle currency conversion automatically, simplifying cross-border transactions for businesses.

• Multicurrency functionality
  Many businesses that cater to international customers use multicurrency features through their payments service providers, as showing customers prices in their local currencies can help build trust and customer satisfaction. While it sometimes costs more to integrate these solutions, the potential value of tapping into a broader customer base often outweighs the added expense.

• Legal and regulatory compliance
  International payment regulations differ from country to country and are subject to change over time. Ensure your business complies with the local laws of each country where you’re accepting payments.

Security and privacy

Middle Eastern nations set Anti-Money Laundering (AML) rules and regulate data privacy and electronic money to protect the local payment sector. Here’s a rundown of security and privacy laws and guidelines to take into account.

• Data protection laws
  Many Middle Eastern countries, including Bahrain and Qatar, have data protection laws that mirror the European Union’s General Data Protection Regulation (GDPR). These require businesses that collect or process personal data to take appropriate measures to store and transmit it safely.

• Authentication requirements
  Multiple authentication factors such as one-time passwords and biometric verification are becoming standard for online transactions, adding another layer of security to payments.

• Electronic money regulations
  Central banks in the region have issued regulations on electronic money in recent years to standardize electronic transactions and protect customers’ data. For example, the UAE’s Stored Value Facilities Regulation mandates storing and maintaining data in the country.

• AML regulations
  Strict AML laws require financial entities to implement routine transaction monitoring, Know Your Customer (KYC) practices, and reporting processes for any suspicious activity that’s discovered.

• Payment Card Industry Data Security Standard (PCI DSS)
  Businesses that accept credit cards must comply with the PCI DSS, a global standard that outlines best practices for storing, processing, and transmitting cardholder data.

Key success factors

Expanding your business operations into the Middle East can create many growth opportunities, but it will require an understanding of local preferences and the persistent challenges that face the payment market. Here’s a closer look at strategies for accepting payments in the Middle East.

• Diverse payment methods
  Cash, credit cards, BNPL, and digital wallets are all commonly used at checkout in the Middle East so accommodating a variety of payment methods helps businesses cater to a broader customer base. For in-person payments, offer a mix of digital and nondigital payment options. And for online payments, offer multiple digital payment options.

• Improved mobile infrastructure
  The mobile commerce market for the Middle East and Africa was worth $810.1 million in 2024 and is expected to grow to over $2.5 billion in 2030. Updating your business’s payment pages to work well on mobile devices and accepting mobile payments can allow you to take advantage of the mobile commerce boom.

• Customized checkout experiences
  Different languages and currencies are used throughout the Middle East. Providing multilingual interfaces, responsive customer support, and flexible currency options can build trust among local customers and create a more intuitive checkout experience.

• Powerful security systems
  A 2023 survey found that 42% of companies in the UAE reported an increase in fraud during a 12-month period and that every UAE dirham (AED) lost to fraud cost organizations an average of 4.19 AED. Businesses that operate throughout the region can mitigate fraud risks and avoid financial losses by investing in advanced fraud detection systems, choosing secure payment gateways, and following global best practices such as by complying with the PCI DSS.

Key takeaways

Although every Middle Eastern country is different, there are similarities in their payment sectors that can guide businesses that are considering accepting payments in the region. Here’s a recap, along with specific tips for businesses.

Diversify payment methods

• Mix local and global options
  Both local and international payment methods from digital wallets to BNPL are popular in the Middle East. Clearly communicate to customers which local and global payment methods your business accepts.

• Refine for mobile
  Ensure your payment pages function smoothly on smartphones and tablets, and choose a payment gateway that can accommodate multiple mobile payment methods.

• Embrace digital wallets
  Local wallets like Etisalat Wallet and global wallets like Google Pay are used throughout the region. Accept wallets for both in-person and online transactions for a quick, convenient checkout process.

Localize the customer experience

• Make your interfaces multilingual
  The Middle East includes a large non-Arabic-speaking population. Consider incorporating languages such as Hebrew and Farsi into your payment interfaces and customer support tools to make your payment experience more inclusive and easier for customers.

• Provide responsive customer support
  Make customer support for payment queries easily accessible. Because purchases can be time-sensitive, real-time assistance can be the difference between a successful transaction and an abandoned cart.

• Accept local currencies
  From the Saudi riyal to the Israeli shekel, multiple currencies are used in this region. Allowing customers to pay in their local currencies can reduce barriers at checkout.

Tighten payment security

• Protect online payments
  Ecommerce businesses encounter various types of fraudulent transactions. Use machine learning fraud detection tools and 3D Secure authentication to catch online payment fraud early and save your business time and money.

• Follow local and global data standards
  Each country’s data privacy laws set a national standard for data handling and protection that businesses must follow. Ensure you understand these requirements as well as the global PCI DSS guidelines.

• Choose secure payments infrastructure
  Pick a payment gateway that uses encryption methods to safely transmit sensitive transaction data such as credit card numbers.