The payments industry’s interest in the Middle East and Africa continues to mount, with two major global players, Mastercard and Amazon Payment Services, announcing a new partnership in the region.
The multi-year deal will see Amazon Payment Services adopt the Mastercard Gateway across Bahrain, Egypt, Jordan, Kuwait, Lebanon, Oman, Qatar, South Africa and UAE. The partners state that the deal is in recognition of an increase in digital payments across these countries.
To meet the demands of digitisation, Mastercard and Amazon aim to offer fast and seamless transactions to local merchants via the partnership. An added goal is building synergies to enhance checkout options and drive more secure transaction rates.
Amnah Ajmal, Executive Vice President, Market Development, EEMEA at Mastercard, said: “We are proud to partner with Amazon Payment Services to scale payment acceptance and accelerate digitization of payments with innovation solutions.”
Digitisation is a process that has touched various industries and various markets, with payments arguably one of those which has felt its impact the most. Markets in the Middle East and Africa are no exception to this, and have been particularly prone to the emergence of alternative payment methods, often as a response to underbanking.
Mastercard’s own data suggest that 95% of Middle Eastern and African consumers are considering using emerging payment methods such as wearables, biometrics, digital wallets, QR codes and contactless payments. A further 61% stated that they would avoid businesses that do not accept electronic payments methods.
The digitalisation of these regions can be seen by the emergence of prominent local payments methods. Although not a target market for this partnership, Kenay’s M-Pesa is an example of this.
Meanwhile, the UAE – which as noted above is a target market – has been moving ahead rapidly with digitalisation, including proliferation of digital assets. This has caught the attention of the likes of Standard Chartered, which launched a digital asset management service in the Middle Eastern nation last month.
Peter George, Managing Director, Amazon Payment Services, Middle East and North Africa, said: “We are delighted to strengthen our collaboration with Mastercard, to deliver on our common goal of shaping the future of online payments in the region.
“Implementing Mastercard Gateway will empower us to expand our reach as a PSP and reduce the burden of integration, since the advanced technology solution is connected to all major acquirers around the world.”
