Mastercard, Amazon partner to digitize payments acceptance in MEA

Mastercard and Amazon Payment Services have signed a multi-year commercial partnership agreement to digitize payment acceptance for merchants in the Middle East and Africa (MEA).

As part of the collaboration, the payment service provider (PSP) will adopt Mastercard Gateway as a payment solution available in 40 markets in the region.

The countries in Africa where the payment processing option will be available include Egypt and South Africa. In the Middle East, countries include Bahrain, Jordan, Kuwait, Lebanon, Oman, Qatar and the United Arab Emirates (UAE).

"The integration of the solution will enable merchants to offer fast, seamless, and secure transactions as well as convenient payment choices to customers," Mastercard said in a statement.

Mastercard Gateway offers a single connection to help customers accept payments globally and allows partners to accept a wide range of digital transactions, including all leading card brands and non-card payment options.

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, Mastercard said.

In addition, the company believes the partnership 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.

Related:Mastercard, MTN Group launch virtual MoMo card for 13 African markets

Last week, Mastercard also announced a partnership with KaiOS Technologies to integrate a range of digital payments solutions for small businesses in Africa and other emerging regions.

Amazon officially launched its e-commerce marketplace in South Africa in May 2024, and Robert Koen, managing director for sub-Saharan Africa at Amazon, told Connecting Africa in an interview in June that the company is optimistic about its growth prospects in South Africa.

Digital payment interest grow across MEA

According to the Mastercard Payment Industry Insights Index, 95% of consumers in MEA 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.

US e-commerce giant Amazon officially launched its online marketplace in South Africa in May 2024. (Source: Amazon)

"We are proud to partner with Amazon Payment Services to scale payment acceptance and accelerate digitization of payments with innovation solutions," said Amnah Ajmal, Mastercard executive VP for market development in EEMEA.

Related:Amazon optimistic about South African e-commerce growth

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.

"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," added Peter George, MD for Amazon Payment Services in the Middle East and North Africa (MENA).

Amazon Payment Services already supports more than 4,000 merchants and businesses across the MENA region. The company's services are available for businesses in the UAE, Saudi Arabia, Egypt, Jordan, Lebanon, Qatar, Kuwait, Oman and Bahrain.

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— Paula Gilbert, Editor, Connecting Africa