Mastercard and Amazon Payment Services have entered into a partnership to enhance digital payment acceptance across the Middle East and Africa, with a focus on markets like Egypt and South Africa. Through this collaboration, Amazon Payment Services will leverage Mastercard’s Gateway, a unified payment processing platform, to offer fast, secure, and convenient transactions across 40 markets in the region.
The partnership also includes an innovation agreement aimed at introducing advanced payment technologies, such as Secure Card on File, Click to Pay, and token authentication services.
These solutions will offer merchants multi-rail checkout options and provide customers with a smoother, quicker checkout experience.
Merchants using Amazon Payment Services, including Amazon’s online stores in Egypt, are expected to benefit from the growing shift toward digital payments in the region.
Additionally, the partnership opens up avenues to collaborate with telecommunications companies and governments to further enhance digital payment systems, leading to more secure and efficient transactions.
Peter George, Managing Director of Amazon Payment Services for the Middle East and North Africa, highlighted that integrating Mastercard’s Gateway will expand Amazon’s reach as a payment service provider and simplify integration with global acquirers.
Since launching Amazon Payment Services in December 2020, Amazon has aimed to provide secure, user-friendly online payment services across the MENA region. Currently, the service supports over 4,000 merchants.
While the Middle East and Africa have been slower to adopt digital payments compared to other regions, the market is projected to grow from $226.53 billion in 2024 to $380.86 billion by 2029.
This growth, driven by increased smartphone usage and efforts to merge physical and digital shopping experiences, represents a compound annual growth rate (CAGR) of 10.95%.
A recent study also showed that 95% of consumers in the region are considering using emerging payment methods, such as digital wallets, QR codes, and contactless payments, with 61% of consumers avoiding businesses that do not accept electronic payments. Banks that have transitioned to digital platforms in the region have seen digital transactions increase from 70% to 90% in just two years.