The Middle East is emerging as the fastest-growing digital payments market globally. Real-time transactions reached $675 million in 2022 and are set to quadruple to $2.6 billion by 2027.

A tech-savvy, young population and near-ubiquitous smartphone adoption are fueling this surge, with 80% of young Arabs already active e-shoppers. However, growth isn’t just consumer-driven; governments are also embedding digital transformation into their national strategies.

Initiatives such as Saudi Vision 2030, Egypt Vision 2030, and the UAE’s digital strategy signal that technology is no longer a support function. It’s a central pillar of economic planning.

As digital payments scale, the region is positioning itself as a global leader in financial innovation.

MIDDLE EAST EXPANSION

Private-sector players are stepping up. PayPal’s $100 million commitment to the MENA region focuses on technologies, partnerships, and solutions that enable entrepreneurs to scale, access global markets, and participate more fully in the digital economy.

Otto Williams, Senior Vice President and General Manager at PayPal Middle East and Africa, called the move a natural extension of the company’s global strategy: expanding access to digital payments, easing cross-border trade, and enabling businesses of all sizes to compete internationally.

“What makes this more than a financial commitment is that the region allows us to build and deploy market-relevant solutions,” Williams said. “The markets here are diverse and fast-moving, so when a product works, we know it can scale. That is how the lessons we learn in MEA feed directly into PayPal’s global strategy.”

He added that building in the region supports the local digital economy and generates insights and innovations that could shape the next generation of global commerce.

FINANCIAL INCLUSION

Williams emphasized that success in the region extends beyond financial growth.

“It means millions of people who face barriers to engaging in global commerce today will have access to trusted digital services, and SMEs and creators across the region will be able to sell beyond their borders without delays or unnecessary costs,” he said.

Financial inclusion, he added, is measured by impact: more secure transactions, expanded cross-border trade, and communities benefiting from participation in the global economy. “It’s not inclusion by access alone, but by outcomes,” Williams explained.

Examples include freelancers in Morocco accessing PayPal balances in local currency via the CASHPLUS app and Kenyan entrepreneurs linking M-PESA to PayPal for instant international payments.

PayPal plans to track success by adopting locally co-created solutions, from faster cross-border transfers to simplified withdrawals, scaling products that lower SME costs and broaden consumer access.

Williams also highlighted the role of innovation. “Through PayPal Ventures, we want to see more regional founders building businesses that compete globally. If, in five years, more entrepreneurs are scaling internationally, more consumers are transacting confidently, and more local solutions shape PayPal’s global roadmap, that will be success.”

VISION FOR THE FUTURE

Williams describes the MEA region as defined by rapid digital adoption, a young, tech-savvy population, and governments actively building digital economies.

“The region does not move in a single way, which makes it difficult to apply one-size-fits-all solutions, and that diversity also creates the right environment to design products that can scale and adapt,” he says.

He emphasizes that co-creation with local partners is essential. “The needs in Egypt differ from South Africa, and again from the Gulf. The only way to build effective products is to design them with people who know these markets best.”

This approach involves close collaboration with banks, telcos, fintechs, and startups to ensure products reflect local realities while connecting people and businesses to the global economy. Ideas developed in MEA, Williams notes, often influence PayPal’s global operations. “Few regions combine this level of growth, ambition, and diversity, which is why MEA is a key proving ground for digital commerce.”

He expects more integrated payment experiences embedded in everyday activities, from travel to shopping to business operations. Cross-border capabilities will expand, helping SMEs and entrepreneurs reach international customers. Platforms like PayPal World will link local wallets to global markets, while stronger digital identity and security measures will enhance consumer confidence.

“These innovations will shape the region’s role in the next chapter of global digital commerce.”