Digital Payments Thriving in the Middle East Despite Regional Hostilities

Digital payments are rapidly gaining traction in the Middle East, with 85% of consumers using at least one digital payment method in the past year. Buy-now-pay-later (BNPL) has emerged as one of the most popular payment choices in the region, especially in countries with limited credit access. Stored value facilities (SVFs), including digital wallets and prepaid cards, have also expanded financial inclusion. Political tensions, however, threaten this progress, potentially stalling growth in the digital payments ecosystem. Despite the existing challenges, countries like Bahrain and Saudi Arabia are investing in AI and open banking, positioning the region as a potential disruptor in the global fintech market.