There has been a significant increase in digital payment in the MENA region. The COVID-19 pandemic catalyzed digital payments, increasing adoption across virtually all categories. 

Based on quantitative data and insights from over 100 executives across Saudi Arabia, the UAE, and Egypt, Amazon Payment Services (APS) revealed their latest report, Leading Trends in Digital Payments: Driving Real-Time Economy in MENA, highlighted key payment trends. 

The report shows that 81% of businesses cite faster payment transactions as a potential solution to increasing revenues.

As nearly a third of businesses anticipate significant growth in 2024, advancing the field of digital payments is crucial to focus on. The report outlines trends identified by the executives impacting digital payments, including bank accounts linked to national identity, the rise of digital wallets, enhanced payment experiences, fraud reduction, and improved biometric authentication.

One such trend involves innovation and advances in omni-pay to create more flexible and convenient customer experiences. 

Stablecoins, open banking, and account-to-account payments are innovations that offer businesses new avenues for transactional flexibility.

Fintech innovation and payment fragmentation are listed among the most important, and 89% of the executives said they engage with fintech companies to improve their business’s payments.

Moreover, enhanced experiences drive customer satisfaction and loyalty by allowing for more streamlined transactions with digital wallets and embedded payments in applications listed as preferred methods. 

Social commerce is also on the radar, as customers seek seamless integration of payment options with their online interactions.

Another trend is the need for security measures amid growing cybersecurity threats. Advanced technologies like biometrics and enhanced security features are helping build trust among consumers. 

The report highlighted that 68% of the businesses believed earning customer trust was the most important reason to deploy new payment methods.

Meanwhile, the rise of AI is revolutionizing the efficiency of payment processing, offering cost reduction and personalization opportunities. With AI-driven insights, businesses can predict preferred payment methods and tailor offerings to individual customer preferences.