Mastercard and Amazon Payment Services to Enable Digital Payment Acceptance Across Middle East and Africa

Rhea-AI Summary

Mastercard and Amazon Payment Services have signed a multi-year partnership to digitize payment acceptance across Middle East and Africa. The collaboration covers key countries including Bahrain, Egypt, Jordan, Kuwait, Lebanon, Oman, Qatar, South Africa and UAE. Amazon Payment Services will adopt Mastercard Gateway, a single touchpoint for payment processing available in 40 markets in the region.

This integration aims to provide fast, seamless, and secure transactions for thousands of merchants, including Amazon online stores in UAE and Egypt. The partnership aligns with the increasing demand for digital payments, with 95% of consumers in the region considering emerging payment methods. Both companies will also co-create innovative multi-rail payment solutions, including Secure Card on File, Click to Pay, and token authentication services.

Positive

• Partnership expands Mastercard's presence in Middle East and Africa
• Integration of Mastercard Gateway in 40 markets
• Potential for increased transaction volume and revenue from thousands of merchants
• Development of innovative payment solutions like Secure Card on File and Click to Pay

Negative

• None.

Insights

Payments Industry Analyst

This partnership between Mastercard and Amazon Payment Services is a significant move in the digital payments landscape of the Middle East and Africa. It leverages Mastercard's Gateway technology to enhance payment acceptance across nine key countries in the region. The collaboration addresses the growing demand for digital payment methods, with 95% of consumers in the area considering emerging payment technologies.

The integration of Mastercard Gateway will benefit thousands of merchants, including Amazon's online stores, by offering faster and more secure transactions. This aligns with regional trends, where 61% of consumers avoid businesses not accepting electronic payments. The partnership also aims to develop innovative solutions like Secure Card on File and Click to Pay, which could significantly improve the checkout experience.

For Mastercard, this deal expands its footprint in a rapidly digitizing market. For Amazon Payment Services, it provides access to Mastercard's global network, potentially accelerating its growth as a payment service provider in the region. The collaboration could lead to increased transaction volumes and market share for both companies in this high-growth area.

Market Research Analyst

This partnership taps into a significant market opportunity in the Middle East and Africa. The region is showing a strong appetite for digital payment solutions, with banks seeing digital transactions increase from 70% to 90% in just two years. This rapid shift indicates a market ripe for innovation and expansion in digital payment services.

The collaboration between Mastercard, a global payments leader and Amazon Payment Services, with its strong regional presence, creates a powerful combination. It addresses key consumer demands for convenience and security in digital transactions. The wide geographical coverage of the partnership, spanning nine countries, provides a substantial addressable market.

For investors, this move signals potential revenue growth opportunities in emerging markets for Mastercard. It also demonstrates the company's strategy to partner with established regional players to penetrate new markets effectively. The focus on innovation, evidenced by the plans to develop new payment solutions, suggests ongoing efforts to maintain a competitive edge in the rapidly evolving fintech landscape.

• The payment service provider will adopt the Mastercard Gateway to support fast, seamless, and secure transactions across the region
• Partnership covers key countries including Bahrain, Egypt, Jordan, Kuwait, Lebanon, Oman, Qatar, South Africa and UAE
• The two partners will also co-create innovative multi-rail payment solutions for customers

DUBAI, United Arab Emirates--(BUSINESS WIRE)-- Mastercard and Amazon Payment Services have signed a multi-year commercial partnership agreement to digitize payment acceptance in Middle East and Africa, across countries including Bahrain, Egypt, Jordan, Kuwait, Lebanon, Oman, Qatar, South Africa and UAE.

Mastercard and Amazon Payment Services executives at the signing ceremony (Photo: AETOSWire)

As part of the collaboration, the leading payment service provider (PSP) will adopt Mastercard Gateway – a single touchpoint for payment processing – as a payment solution available in 40 markets in the region. The integration of the solution will enable merchants to offer fast, seamless, and secure transactions as well as convenient payment choices to customers.

In line with the rapid increase in digital payments, the partnership will benefit thousands of Amazon Payment Services merchants, including Amazon online stores for shoppers across the UAE and Egypt. In addition, it will open new opportunities for building synergies with entities such as telcos and governments to enhance their checkout options, driving a faster and more secure transaction rate for their customers.

According to the Mastercard Payment Industry Insights Index, 95% of consumers in Middle East and Africa are considering using emerging payment methods, such as wearables, biometrics, digital wallets, QR codes, and contactless payments. Additionally, 61% of consumers would avoid businesses that do not accept electronic payments, while banks in the region that have migrated to digital channels have also seen the share of digital transactions increase from 70% to 90% over the course of approximately two years.

“We are proud to partner with Amazon Payment Services to scale payment acceptance and accelerate digitization of payments with innovation solutions,” said Amnah Ajmal, Executive Vice President, Market Development, EEMEA, Mastercard.

The two organizations have also signed an innovation agreement to develop Secure Card on File, Click to Pay, and token authentication services to provide multi-rail checkout options to merchants, and a faster checkout experience to end customers.

Peter George, Managing Director, Amazon Payment Services, Middle East & North Africa, commented: “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.”

Mastercard Gateway is a trusted solution that offers a single connection to help customers accept payments globally and expand into new markets with ease while protecting them from risk and fraud. Powered by frictionless digital checkout solutions, it removes the need for manual card and password entry for online shoppers. As one of the largest gateways in the region that is utilized by many players in the financial space, it allows its partners to accept a wide range of digital transactions, including all leading card brands and non-card payment options.

Amazon Payment Services continues to enable online payments in MENA, supporting over 4,000 merchants and businesses across the region. The company’s services are available for businesses in the United Arab Emirates, Saudi Arabia, Egypt, Jordan, Lebanon, Qatar, Kuwait, Oman and Bahrain.

Source: AETOSWire

View source version on businesswire.com: https://www.businesswire.com/news/home/20240930168364/en/

Halima Islam, Mastercard

Halima.Islam@mastercard.com

Source: Mastercard

FAQ

What countries are covered in the Mastercard and Amazon Payment Services partnership?

The partnership covers key countries including Bahrain, Egypt, Jordan, Kuwait, Lebanon, Oman, Qatar, South Africa and UAE.

How will the Mastercard Gateway benefit merchants using Amazon Payment Services?

The Mastercard Gateway will enable merchants to offer fast, seamless, and secure transactions as well as convenient payment choices to customers across the Middle East and Africa region.

What percentage of consumers in Middle East and Africa are considering emerging payment methods according to Mastercard's study?

According to the Mastercard Payment Industry Insights Index, 95% of consumers in Middle East and Africa are considering using emerging payment methods such as wearables, biometrics, digital wallets, QR codes, and contactless payments.

What innovative payment solutions will Mastercard (MA) and Amazon Payment Services develop together?

The two organizations will develop Secure Card on File, Click to Pay, and token authentication services to provide multi-rail checkout options to merchants and a faster checkout experience to end customers.