Mastercard and Amazon Payment Services have forged a strategic alliance aimed at bolstering the infrastructure for digital payments across the Middle East and Africa, with a particular focus on countries such as Egypt and South Africa. This collaboration grants Amazon Payment Services access to Mastercard’s Gateway, a comprehensive payment processing platform, to facilitate payment solutions in 40 markets within the region. This integration is designed to offer customers swift and secure transaction processing, along with a variety of convenient payment methods.
In a joint statement, the companies announced that they have entered into an agreement to innovate in the realm of payment security and efficiency. They plan to develop and implement advanced payment features such as Secure Card on File, Click to Pay, and token-based authentication services. These initiatives aim to provide merchants with versatile checkout solutions and enable consumers to enjoy a more expedited and seamless payment process.
Retailers utilizing Amazon Payment Services, including Amazon’s own e-commerce platforms in nations like Egypt, stand to gain from this partnership, especially in light of the increasing adoption of digital payment methods.
Furthermore, the collaboration is set to create avenues for working with various entities, including telecommunications companies and government bodies, to enhance their payment systems. This enhancement is expected to yield quicker and more secure transactions for their customers.
Peter George, the Managing Director of Amazon Payment Services for the Middle East & North Africa, emphasized the significance of integrating Mastercard Gateway. He stated that this move would broaden the company’s capabilities as a payment service provider and streamline the integration process, thanks to the Gateway’s connection to major financial acquirers worldwide.
In December 2020, Amazon unveiled Amazon Payment Services, a payment processing solution tailored for the Middle East and North Africa (MENA) region. This service leverages Amazon’s robust and scalable technology to deliver secure and user-friendly online payment options. Currently, Amazon Payment Services caters to over 4,000 merchants across the MENA region.
Despite the relatively slow uptake of digital payments in the MENA region compared to other parts of the world, the market is expected to experience substantial growth. Projections suggest an increase from approximately $226.53 billion in 2024 to $380.86 billion by 2029, representing an annual growth rate of 10.95%. This growth trajectory is attributed to factors such as the widespread use of smartphones, enhanced social connectivity, and merchant initiatives to integrate physical and digital shopping experiences.
