The Payment Landscape in MENA
The MENA region’s payment ecosystem has transformed dramatically over the past five years. What was once a cash-dominated market is now a sophisticated fintech landscape.
Key statistics:
- 57% of transactions in Saudi Arabia are now cashless
- 23M+ Apple Pay users in MENA
- Mada processes 70%+ of card transactions in Saudi Arabia
- Buy-Now-Pay-Later (BNPL) growing at 60% annually
Payment Methods Your Marketplace Must Support
Cards
Visa, Mastercard, and Mada (Saudi Arabia’s national payment network) are non-negotiable. If you don’t support Mada, you’re excluding a huge portion of the Saudi market.
Digital Wallets
- Apple Pay (dominant in KSA and UAE)
- Google Pay (growing rapidly)
- STC Pay (Saudi Arabia)
Bank Transfers
Still widely used for B2B transactions and high-value purchases.
Buy Now, Pay Later
Tabby and Tamara are the dominant BNPL providers. Offering these can increase conversion by 15-30% on higher-priced items.
Split Payments: The Marketplace Challenge
The biggest payment complexity for marketplaces is split payments — automatically distributing funds between your platform and your sellers.
There are three approaches:
1. Manual Reconciliation (Avoid)
You collect all funds, then manually pay sellers. This is error-prone, slow, and doesn’t scale.
2. Escrow Model
Funds are held in escrow until order completion, then automatically distributed. Better, but requires more technical infrastructure.
3. Real-Time Splits (Recommended)
When a payment is processed, it’s automatically split — seller gets their portion, you keep your commission. This is what Ajrly does by default.
Regulatory Considerations
Saudi Arabia
- Payment providers must be licensed by SAMA (Saudi Arabian Monetary Authority)
- VAT at 15% applies to all transactions
- Certain categories may require additional licensing
UAE
- CBUAE (Central Bank of UAE) oversight
- VAT at 5%
- Crypto payments in a regulatory grey zone (avoid for now)
Cross-Border Considerations
If you plan to serve multiple countries, ensure your payment provider handles:
- Multi-currency settlements
- FX rate transparency
- Cross-border compliance
What to Look for in a Payment Partner
- Mada support — Non-negotiable for Saudi Arabia
- Local entity — Reduces chargebacks and improves approval rates
- Arabic support — Customer-facing error messages should be in Arabic
- Real-time dashboards — See transactions as they happen
- Transparent pricing — No hidden fees
Ajrly’s Payment Infrastructure
Ajrly’s payment system was built specifically for MENA marketplaces:
- Supports Mada, Visa, Mastercard, Apple Pay, STC Pay
- Automatic split payments and seller payouts
- VAT calculation built in
- Arabic error messages and receipts
- Settlement in SAR, AED, KWD and other local currencies
- Fraud protection that understands local patterns
Reducing Chargebacks
Chargebacks are expensive (not just the refund, but fees from your payment processor). Reduce them by:
- Clear product descriptions — No surprises at delivery
- Transparent return policies — Easy returns reduce disputes
- Strong email confirmation — Include order details, seller info, expected delivery
- Quick customer support — Resolve issues before they become chargebacks
Conclusion
Payment infrastructure is the foundation of any marketplace. Get it right from the start — choosing a partner that understands MENA compliance, supports local payment methods, and handles the complexity of split payments.
With Ajrly, all of this is built in. Start your free trial and have payment processing live in minutes.