Shifting payment behaviours in the Middle East: Key trends every provider should know.

By Nicky Cockerill 
Consultant

Although cash and cash-on-delivery remain prevalent in the Middle East, the region is rapidly shifting towards digital and card-based payments. Mobile wallets, contactless transactions, and Buy Now, Pay Later (BNPL) options are gaining traction, driven by evolving consumer behaviours and government-led financial inclusion initiatives. As this shift accelerates, payment providers must stay ahead of key trends to remain competitive and meet the growing demand for secure, flexible, and frictionless payment solutions.¹

The current payment landscape

The Middle East is moving decisively toward a cashless economy, with electronic payments now accounting for over 50% of all transactions and 95% of total transaction value. Card payments, mobile wallets, and real-time payments continue to reshape consumer behaviour, signalling a long-term shift away from cash.²

This trend is accelerating across the region. In Saudi Arabia, for example, digital payments are projected to make up the majority of transactions by 2027, with real-time payments comprising 7.4% and other electronic transactions contributing 48.6% of the total.3 Governments and financial institutions across the region are actively driving this transformation as part of broader economic diversification strategies, aimed at reducing reliance on cash, encouraging private-sector investment, and expanding financial inclusion.⁴

As digital payment adoption grows, providers must adapt to consumer expectations for seamless, secure, and efficient transactions – whether in-store, online, or across borders.

Key trends shaping consumer payments

Digital payments are gaining ground across the Middle East, reshaping consumer habits both online and in-store. According to Worldpay’s Global Payments Report 2025, digital payments accounted for 49% of total transactions in MEA (2024), nearly matching cash and card payments (51%). By 2030, digital payments in MEA are expected to dominate, making up 65% of e-commerce spending and 47% of point-of-sale (POS) transactions.

Several key trends are driving this shift⁵:

1 - Digital wallets becoming the preferred payment method

Digital wallets are increasingly the first choice for consumers, particularly in Saudi Arabia, where they are set to surpass debit and prepaid cards in 2025. Apple Pay (36%), PayPal (29%), and STC Pay (26%) are reportedly the most used for online transactions, while Apple Pay (34%), mada Pay (25%), and STC Pay (20%) lead for in-store purchases. With Saudi Arabia targeting 80% cashless transactions by 2030, this trend is expected to accelerate.

2 - Credit cards maintaining their hold in the UAE

Credit cards remain the most popular payment method in the UAE, accounting for 34% of e-commerce and 35% of POS transaction value in 2024. However, new solutions are emerging. Aani, the UAE’s real-time account-to-account (A2A) payment system launched in 2023, could disrupt the market if adoption follows India’s UPI model. Meanwhile, the newly introduced Jaywan debit card scheme aims to challenge Visa and Mastercard’s dominance in domestic payments.

3 - BNPL adoption on the rise

BNPL services continue to gain traction, particularly among younger consumers. Riyadh-based Tabby leads the sector, with 49% of online BNPL users favouring it over competitors such as Tamara (11%) and Dubai-based Postpay (5%). As demand for flexible, interest-free instalment options grows, BNPL is expected to play an even larger role in both e-commerce and in-store transactions.

The rapid shift toward digital payments presents both opportunities and challenges for payment providers. To stay competitive, they must offer seamless, secure, and flexible payment options that align with evolving consumer expectations.

How payment providers can stay ahead

As digital payments continue to expand across the Middle East, providers must adapt to shifting consumer expectations. To remain competitive, they should focus on:

• Optimising for mobile payments – With digital wallets and contactless transactions becoming the norm, offering seamless, mobile-first payment experiences is now a must. Consumers expect quick, convenient, and secure payments on their devices, whether online or in-store.

• Strengthening security and fraud prevention – As digital payment volumes rise, so do the risks of cyber threats. Leveraging AI for fraud detection, incorporating biometric authentication, and ensuring robust security protocols are critical for maintaining consumer trust and protecting sensitive data.

• Integrating real-time payment systems – As evidenced by Saudi Arabia’s Sarie and the UAE’s Aani, the region is pushing for instant payments. Providers should integrate with these emerging real-time payment platforms to provide customers with quicker, more efficient transaction options.

• Expanding BNPL and flexible payment options – BNPL is a rapidly growing trend, particularly among younger consumers. Offering flexible payment models, including BNPL and other instalment-based systems, can attract a broader consumer base and align with preferences for affordability and financial flexibility.

Providers that prioritise innovation, user experience, and regulatory alignment will be best positioned to capitalise on the Middle East’s payment transformation.

The Middle East is at a turning point in its payment evolution. With digital wallets, BNPL services, and real-time payment systems gaining traction, cash is steadily being replaced. By 2030, digital payments are expected to represent the majority of transactions, driven by consumer demands and government initiatives aimed at financial inclusion.

For payment providers, staying relevant means embracing the shift towards digital-first solutions. Companies that focus on delivering secure, adaptable, and seamless payment experiences will be well-positioned to succeed in this evolving landscape.