What payment methods does the Middle East Ecommerce Platform support?

E-commerce platforms in the Middle East are more diverse in terms of payment methods to cater for different countries and user preferences. Below are the main payment methods and their characteristics:

1. Credit/debit cards

  • Visa, andMastercard: Widely accepted, especially in more developed markets such as the UAE and Saudi Arabia.
  • Mada Card(Saudi-specific): Local Saudi debit card network covering most online transactions.
  • Other local cards: such as the UAE'sNOL(Transport Card Extended Payment), etc.

2. digital wallet

  • Apple Pay/Google Pay: Popular among younger users and higher income groups.
  • STC Pay(Saudi Arabia),Beam Wallet(UAE): Localised wallet with support for phone top-ups and micropayments.

3. Cash on Delivery (COD)

  • It accounts for up to 30%-60%, especially in cash-dominated markets such as Egypt and Jordan. However, the return rate is high, and attention needs to be paid to cost control.

4. bank transfer

  • Fawry (Egypt): Payment for online orders is done through offline outlets or ATMs.
  • BenefitPay (Bahrain), KNET (Kuwait): direct bank account debit.

5. pay for what you want before you buy (BNPL)

A fast-growing service:

  • Tabby (covering the Gulf States)
    Postpay
    Suitable for high unit price goods instalment needs

⚠️ Notes:

  • Religious Compliance: Some platforms are subject to Islamic finance rules (prohibition of interest).
  • currency settlement: It is recommended to support multiple currencies (e.g. AED/SAR) to avoid exchange rate losses.
  • repudiation risk: High credit card fraud rate, recommend access to a fraud prevention system such as Checkout.com.

The Noon platform, for example, offers both Tabby instalment and COD options, while Souq's acquisition by Amazon has led to a major push to tie in international credit cards. Adapting the payment mix to the target country is a key strategy.

An in-depth analysis of e-commerce payment methods in the Middle East (continued)

6. Localised payment programmes (key growth points)

Middle East countries are highly dependent on local payment methods and need to focus on access:

  • abbr. for Saudi Arabia::
    • Mada(Mandatory): all e-commerce companies operating in Saudi Arabia must support it.
    • Sadad Payments: Government-led bill payment system suitable for large transactions.
  • UAE::
    • PayBy(Instant Payments supported by the Central Bank) - an emerging alternative to cash.
    • Careem Pay(Wallet owned by online car giant with high user stickiness).
  • Egypt: The cash economy is predominant, but digitisation is accelerating:
    • Fawry(Covering 90,000+ offline outlets and accounting for 70% of e-payments).
    • Vodafone Cash(mobile wallet, dependent on telco penetration).

7. BNPL's special play in the Middle East

Buy now, pay later explodes in Middle East (40%+ annual growth rate), but localisation adjustments need to be watched :...

  • interest-free instalmentIt's a hard demand - Islamic finance prohibits interest, so platforms like Tabby advertise "0% interest" and profit from merchant commissions.
  • Shariah Compliance Certification:: Confidence can be enhanced by obtaining a compliance endorsement from an Islamic financial institution (e.g., Al Rajhi Bank audit).
  • Social fission promotionFor example, "Invite your friends to make an instalment and both of you will get a coupon", which is in line with the highly communicative nature of the Gulf family culture.

8. COD Optimisation Strategy (Reduced Returns)

Cash on Delivery (COD) is high, but the cost pain point is significant.

  1. Pre-authorisation mechanism: Freeze part of the amount (e.g. 10%) when placing an order to reduce random cancellations.
  2. COD + Discount:: "5% off for online prepayment", gradually cultivating the habit of electronic payment.
  3. Logistics Co-operation Deep Binding: Signed COD collection agreements with local logistics companies, such as Naqel (Saudi Post), to reduce the cycle of capital recovery.

9. The hidden minefield of cross-border payments

If inter-regional sales are involved.

  • 🌍️ foreign exchange control: Iran, Lebanon and other countries to limit the dollar settlement, need to take the official exchange rate channel.
  • 📦Customs associated payment:DHL/UPS may require proof of payment before releasing the parcel.