- Mastercard and Amazon Payment Services have partnered to enhance digital payment acceptance in the Middle East and Africa, including Egypt and South Africa.
- The partnership enables Amazon Payment Services to use Mastercard Gateway, a single point of payment processing, as a payment solution in 40 markets across the region, providing customers with fast, secure transactions and convenient payment options.
- According to a statement, the two companies have also signed an innovation agreement to develop Secure Card on File, Click to Pay, and token authentication services to provide merchants with multi-rail checkout options and end users with a faster checkout experience.
Merchants using Amazon Payment Services, including Amazon's online stores in countries like Egypt, will benefit from this partnership amid the growth of digital payments.
The partnership will also open up new opportunities to collaborate with organisations such as telcos and governments to improve their checkout options, resulting in faster and more secure transactions for customers.
On this development, Peter George, Managing Director, Amazon Payment Services, Middle East & North Africa, reiterated that integrating Mastercard Gateway will enable the company to expand its reach as a payment service provider and simplify integration, as the advanced technology is linked to all major acquirers globally.
In December 2020, Amazon announced the launch of Amazon Payment Services, a payment processing service in the Middle East and North Africa (MENA) region that will provide secure and user-friendly online payment services based on Amazon's scalable and reliable technologies.
Amazon Payment Services is said to serve over 4,000 merchants in the MENA region.
The adoption of digital payments in MENA has been reportedly slow compared to other regions globally, but the market is still projected to grow significantly, increasing from an estimated $226.53 billion in 2024 to $380.86 billion by 2029.
This growth, at an annual growth rate (CAGR) of 10.95%, is reportedly driven by the rising use of smartphones, social interactions, and efforts by merchants to bridge the gap between physical and digital shopping experiences.
A recent study also indicates that 95% of consumers in the Middle East and Africa are considering using emerging payment methods, such as wearables, biometrics, digital wallets, QR codes, and contactless payments.
While 61% of consumers would avoid businesses that do not accept electronic payments, banks in the region that have migrated to digital channels have seen digital transactions increase from 70% to 90% in about two years.
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