Want to enter the Middle East market? Get to know these payment methods first

The payments segment is a key breakthrough when it comes to penetrating the Middle East market. The region's payments ecosystem is full of both opportunities and unique challenges, so here's the latest hands-on guide:

I. The "two sides" of credit cards

  1. UAE credit card penetration at 651 TP3T, but only 381 TP3T in Saudi Arabia - needs to be matched with a localisation strategy:
  • Mandatory support for the Mada card (exclusive to Saudi government agencies for payroll)
  • Reserve Arabic Customer Service Channel
  • Implementing Dynamic 3D Secure Verification

II. Innovative solutions for cash payments

  1. CashPay outlets in Egypt cover every neighbourhood convenience store:
    • Cost of co-operation: $0.8 per transaction + 2%
    • Settlement cycle T+3
  2. Fawry access tips:
    • Must be registered with the Egyptian Business Registration Number
    • API response time control within 5 seconds

III. Explosive growth of e-wallets

  1. New rules for STC Pay after surpassing 8 million users:
    • Shariah compliance review cycle extended to 45 days
    • Withdrawal fee from 1% to 1.5% (new regulation 2024)
  2. Beam Wallet's secret weapon in the UAE:
    Deeply bundled with Careem taxi app, referrals can get 20% ride discounts

IV. Special play on bank transfers
- UAE's DirectPay system requirements:

  • The IBAN number must contain a 23-digit identification code.
  • SMS secondary authentication forced on

V. Localised morphs of BNPL (with Tabby as an example).

  • Tier 1 Merchant Entry Criteria: Monthly Water Flow > US$500,000
  • Deferment of repayment is allowed for 60 days during Ramadan (regular 30 days)

[Special note on wind control]
Dubai Financial Services Authority (DFSA) latest requirements:
All cross-border transactions require an additional field for "Scanned copy of beneficiary's ID card".
Failure to do so may result in a 72-hour freeze of funds.

A mixed programme mix is recommended:
High-end market (UAE/Qatar): credit card + Apple Pay + Tabby
Emerging Markets (Egypt/Pakistan): Fawry + Cash on Delivery
GCC Country Standard: STC Pay + Mada Dual Channel

Data shows that platforms configured with more than 3 payment methods see a 47% increase in conversions. but watch out for the new Central Bank of Kuwait rule: e-wallet balances must not exceed 2,000 dinars (about $6,500).

In-depth analysis of the Middle East payments market (continued)

VI. Compliance Minefields in Cross-Border Payments

  1. New UAE AML regulations (effective 2024)::

    • A single transaction ≥ AED 55,000 (approx. USD 15,000) automatically triggers manual review by the Central Bank and requires submission of a copy of the purchase contract.
    • The e-commerce platform must keep user IP + device fingerprint information for at least 5 years.

  2. Saudi SAMA's "white list" system::

    • Only foreign companies with access to the local clearing system (SARIE) can handle rial settlements, with an application cycle of 6-8 months.
    • Recommended partner gateways: PayTabs (licensed), Geidea (supports instant Saudi custom pages).

  3. Egypt's exchange control trap::

    • CBE mandatory 30% payment suspension for 45 days, can be circumvented by registering a FTA company.

VII. Special needs of religious finance

  1. Halal Payment Certification: Gambling/interest/adult content is prohibited, additional application required:

    • ISRA certification in Malaysia (passes through GCC countries) costs about US$12,000.
    • BNPL platforms such as Tabby have introduced '0% interest instalments' but charge 10%-15% 'service fees'.

  2. Ramadan Economic Payment Peak Strategy::
    Dubai traffic distribution monitoring shows:
    |Hours |Volume Increase |Recommendation |
    |—|—|—|
    |1 hour before Iftar |+300% |Early Server Expansion |
    |2-4am |+180% |Push "Late Night Fee Waiver" Promotion |

VIII. Hidden Dividends of Carrier Withholding

  1. Saudi STC PostpaidUsers can tie up their phone bill payments:
  • Suitable for small subscription-based services (e.g. gaming memberships)
  • T+7 settlement cycle with a bad debt rate of only 0.3% (credit card average 2%)

2.Iran MTN Cracking Programme:
Due to international sanctions, only the Hawala underground channel can be used.

  • Delma Exchange rate is 23% higher than the official rate
  • USDT Stablecoin Premium 18% on Tehran Exchange

[Practical toolbox]

✅ Required plug-ins:
- Telr's "One-click Prayer Time Pause" SDK (to avoid dropping orders during service hours)
- Checkout.com's Middle East Storm Control Rule Pack (Automatically identifies sensitive graphics such as the Camel Trademark™)

⚠️ New risks in 2024:
Qatar Central Bank raids - all POS must have built-in Arabic voice prompts