How can cross-border e-commerce merchants access Middle East payments? A Practical Guide

introductory

With the rapid development of the global e-commerce market, the Middle East has become an important growth point for cross-border e-commerce due to its high per capita consumption, increased internet penetration and policy support. However, due to differences in payment habits, regulatory policies and localised needs, many cross-border sellers face payment challenges in the Middle East market. In this article, we will introduce how to efficiently access the mainstream payment methods in the Middle East, optimise the settlement process and increase the conversion rate.

I. Overview of the Middle East e-commerce market and payments

1. Market size and potential

• The Middle East e-commerce market size has crossed USD 50 billion by 2023 and is expected to maintain a CAGR of over 15% over the next 5 years.
• The UAE, Saudi Arabia and Egypt are the core markets, with online shopping penetration in Saudi Arabia and the UAE exceeding 80%.

2. Analysis of the main payment modalities

(1) Credit/Debit Cards (Visa & Mastercard)

• Penetration is high (especially in the UAE and Saudi Arabia), but some users still prefer local solutions.

(2) Cash on Delivery (COD) - cash on delivery

• Accounting for 30%-50% of e-commerce transactions in the Middle East, it is particularly popular in Saudi Arabia and Egypt. Attention needs to be paid to the issue of logistics costs associated with high rejection risk.

(3) Digital Wallets

• Apple Pay / Samsung Pay: Commonly used by high-end users;
• STC Pay (Saudi Arabia), Fawry (Egypt): Local wallets take a significant share;
• Mada Cards (Saudi Exclusive): Government-driven debit card network covering 90% local consumers.

(4) Bank Transfer & BNPL (Buy Now Pay Later)

• BNPL services such as Tabby (UAE) and Tamara (Saudi Arabia) are growing rapidly;
• Direct bank transfers are commonly used for B2B transactions.

II. Practical steps for accessing Middle East payments

[Step1] Choose a Compliant Cross-Border Collection Service Provider

Ensure partner support:
✅ Local clearing networks such as MADA/SADAD;
✅ COD funds pooling and risk management capacity;
✅ Saudi Central Bank (SAMA)/UAE Central Bank licence;

Recommended Service Provider:
✔ Checkout.com (omnichannel coverage)
✔ PayTabs (Middle East focused)
✔ Telr (Arabic interface support)

[Step2] Technical interface key points

(1) API Integration Considerations.

// Example: PayFort Sandbox Testing API Requests

curl https://sbpayments.payfort.com/FortAPI/paymentApi 

-H "Content-Type: application/json" 

-d '{

   "command": "PURCHASE",

   "merchant_reference": "ORDER_12345",

   "amount": "1000", //in minutes

   "currency": "SAR".

   "customer_email": "[email protected]"

}'

(2) Required Function Development.
⚡ Mada-specific input box recognition
⚡ STC Pay Jump Page Arabic Adaptation
⚡ Tamara Staging Options Front End Display

[Step3] Risk control system construction

III. [Operational optimisation strategies]
📌 Pricing shows local currency (e.g. SAR/AED)
📌 Extended COD repayment cycle during Ramadan
📌 "4 Interest Free Periods" Promotion for Tabby Users

IV. [Frequently asked questions]
Q:How do you deal with exchange controls in Egypt?
A: Receive EGP through Fawry and exchange it for US dollars to leave the country.

Q:What is the reason for Mada card failure?
→Check if Merchant Category Code (MCC) is permitted

Conclusion.
The key to success in the Middle East market is a deeply localised payments solutions portfolio Recommended for continued interest.
🔔 New Value Added Tax (VAT) Policy for Gulf Countries in 2024
🔔 Qatar's upcoming national digital wallet

V. Middle East Payment Localisation Depth Strategy

1. Language and interface optimisation

• Arabic Adaptation: Ensure that payment pages support RTL (right-to-left) layout and that buttons and prompt messages are professionally translated.
• Streamline processes: Middle Eastern users prefer a simple checkout process, recommending "one-click payment" or payment in 3 steps or less.

2. Religious and cultural adaptation

• Ramadan Promotion Strategy: Offer a night delivery option and add a "Ramadan Box" recommendation to the shopping cart page.
• Taboo avoidance: Avoid using sensitive elements such as pigs and alcohol as marketing material.

[Step4] COD (Cash on Delivery) refined operations programme

(1) 5 Ways to Reduce Rejection Rates

🔹 Mandatory filling of detailed address + contact number for secondary verification when placing an order
🔹 Pre-authorisation freezes part of the amount (e.g. 10% for an order)
🔹 High-value orders are automatically converted to online prepayment and given a voucher
🔹 Logistics company co-operation assessment signing rate indicator (Recommendation >85%)

(2) COD Funding Return Acceleration Techniques
▸ Saudi Market: Instant top-ups to merchant accounts via STC Pay
▸ UAE Markets: Contact Banks to Launch "Cash Deposit Management" Service

[Step5] Data monitoring Kanban build]

Key indicators are tracked daily:
✔ Mada card success rate (industry benchmark 78%-82%)
✔ Tabby instalment customer unit price change curve
▶️COD Return Reason Word Cloud Analysis

Tool Recommendation:
► Tableau Middle East Time Zone Report Template
► Google Analytics4 Custom Event Tracking "Payment_Failure"

VI. [Response to emerging trends]
2024 Focus:
🚀 Saudi Arabia opens cross-border foreign exchange settlement pilot (test list application in progress)
🚀 The Impact of the UAE Central Bank Digital Currency (CBDC) on Cross-Border Trade
🚀 Egypt launches 'InstaPay' real-time clearing system to replace traditional TT remittances

Case Sharing:
A Shenzhen 3C seller accessed Mada and took the following steps.
✅Put credit card/Mada option first on payment page → Conversion rate ↑23%
✅ Close COD for areas at high risk of denials → bad debt rate ↓41%

Final checklist:
Has ☑️ completed the SAMA FinTech Sandbox registration? (Required for Saudi Arabia)
Does ☑️ display the Tamara Interest Free logo on the front page of the shop?
Does ☑️ logistics partner support Saturday delivery? (Weekend in Gulf countries is Friday-Saturday)

Need to discuss further country-specific interfacing details? For example Kuwait's KNET gateway specific requirements or Qatar's newly enacted e-wallet regulations?