Mastercard and Amazon Payment Services ink MEA Deal
Mastercard, the global payments technology company, and Amazon Payment Services have entered into a multi-year commercial partnership.
The agreement aims to expand digital payment acceptance across nine countries in the Middle East and Africa region, including Bahrain, Egypt, Jordan, Kuwait, Lebanon, Oman, Qatar, South Africa and the United Arab Emirates.
Per the deal, Amazon Payment Services will adopt Mastercard Gateway, a single interface for payment processing available in 40 markets across the region.
Mastercard Gateway enables merchants to accept a wide range of digital transactions, including major card brands and alternative payment methods. The technology also incorporates features to protect businesses from risk and fraud.
Peter George, Managing Director of Amazon Payment Services for Middle East & North Africa, says: “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.”
Market opportunity
The partnership comes at a time of significant growth in digital payments across the region. According to Mastercard's Payment Industry Insights Index, 95% of consumers in Middle East and Africa are considering using emerging payment methods.
These include wearable devices, biometric authentication, digital wallets, QR codes and contactless payments.
The same research indicates that 61% of consumers would avoid businesses that do not accept electronic payments. Banks in the region that have migrated to digital channels have seen the share of digital transactions increase from 70% to 90% over approximately two years.
In addition, Mastercard and Amazon Payment Services will collaborate on developing new payment solutions.
These include Secure Card on File, which allows merchants to securely store customer payment details, Click to Pay, a digital checkout option and token authentication services.
The aim is to provide merchants with multi-rail checkout options, referring to the ability to process payments through various networks or ‘rails’. This is expected to offer customers a faster checkout experience.
Amnah Ajmal, Executive Vice President of Market Development for Eastern Europe, Middle East and Africa at Mastercard, states: “We are proud to partner with Amazon Payment Services to scale payment acceptance and accelerate digitisation of payments with innovation solutions.”
Impact on merchants
The integration of Mastercard Gateway is expected to benefit thousands of Amazon Payment Services merchants, including Amazon's online stores in the UAE and Egypt. It will allow these businesses to offer customers faster, more seamless and more secure transaction options.
The partnership also opens up opportunities for collaboration with telecommunications companies and governments to enhance their checkout options. This could potentially drive a higher rate of faster and more secure transactions for their customers.
Amazon Payment Services currently supports over 4,000 merchants and businesses across the MENA region. Its services are available in the United Arab Emirates, Saudi Arabia, Egypt, Jordan, Lebanon, Qatar, Kuwait, Oman and Bahrain.
George concludes: “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.”
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