Middle East Payment System Integration Common Problems and Solutions

common problems

1. Localisation compliance challenges

KYC/AML requirements are stringent: Strict customer identification and anti-money laundering requirements in Middle Eastern countries
Data sovereignty legislation: e.g. Saudi data must be stored in the territory
Islamic finance compliance: Need for Sharia-compliant payment solutions

2. Technology integration challenges

API documentation is mostly in Arabic or local language versions
Outdated technical standards for some gateways and poor compatibility with modern systems
Webhook notification mechanisms are imperfect or unstable

3. Fragmentation of payment methods

Coexistence of local programmes such as Mada Card (Saudi Arabia), Fawry (Egypt) and BenefitPay (Bahrain)
Cash on Delivery still accounts for a significant proportion (~30% e-commerce transactions)

Middle East Payment Systems Integration Frequently Asked Questions and Solutions (continued)

4. Long and complex settlement cycle
- Multi-currency processing: SAR, AED, EGP and other currencies need to be supported
- Settlement delays: T+15 or even longer settlement cycles for some gateways
- Exchange controls: e.g., Egypt's strict dollar remittance restrictions

5. Differences in user experience
- Mobile-first design deficit: Middle East smartphone penetration high but some payment pages not optimised
- OTP validation issues: unstable SMS delivery rates, especially between multinational operators
- Traffic surges during special periods such as Ramadan lead to system instability

—

prescription

A. Compliance solutions
1. Local entity + partnership model
- Collaboration with licensed PSPs (Payment Service Providers), e.g. Geidea, PayTabs
- UAE can apply for a Payment Facilitator licence (500,000 AED capital required)

2. Data storage programme
"`python
# AWS Middle East Region Selection Example (Saudi Arabia needs to be configured separately)
if user_country == "SA".
db_region = "me-central-1" # AWS Bahrain actually serves Saudi compliance requirements
else.
db_region = "me-south-1″ # AWS Bahrain Primary Region
“`

3. Islamic finance adaptation
- Tagging transactions as "Halal Payment"
- Zero-interest instalment option

B. Technology integration best practices

API standardisation programme:
"`javascript
// Middleware layer unifies handling of different gateway API differences
class MEPaymentGateway {
constructor(gatewayType) {
this.adapter = new GatewayAdapterFactory.create(gatewayType);
}

async processPayment(order) {
// Harmonise the format of converted amounts (GCC countries tend to use two decimal places).
amount = Math.round(order.total *100)/100;

// BenfitPay requires special fields
if(this.gatewayType === 'BENEFIT') {
payload.bank_code = this._mapBankCode(order.bank);
}
}
}
“`

Webhook reliability enhancement:
✅ Double-confirmation mechanism
✅ SQS Message Queue Buffering
✅ SLA monitoring dashboard (tracking response times across gateways)

C. Payment Optimisation Matrix

—

Pro Tips.

1️⃣ *SAMA Certification in Saudi Arabia*: PCI DSS Level 1 is the base requirement, prepare 6 months audit logs

2️⃣ *Instant Payments in the UAE*: ENBD Bank's Instant Payments API is 3x faster than standard gateways!

3️⃣ *Cash Alternatives in Egypt*: Fawry's Barcode Payments in Grocery Stores Coverage >90%

4️⃣ *Performance Monitoring Metrics*.
“`
▌Success rate baseline:
KSA ≥92% (≥85% during Ramadan)
UAE ≥95%
EGYPT ≥88% (≥78% in rural areas)
“`

5️⃣ *Emergency programme template*.
"`xml
yamamah
twilio_mena
Generate Fawry reference number “`

Regular attendance at GITEX and Seamless MENA conferences is recommended for the latest regulatory updates.

Middle East Payment System Integration Common Problems and Solutions