By: Leila Serhan, Senior Vice President and Group Country Manager, North Africa, Levant and Pakistan Region at Visa
The digital revolution reshaping MENA and Pakistan’s economic future
Digital payments are reshaping economies across the region driving inclusion, innovation, and growth. From Egypt’s SME-focused shift to Morocco’s national digital strategy, Iraq’s rising digital commerce, and Pakistan’s increasing focus on a secure payment ecosystem, the region is embracing a more connected and resilient future.
A Regional Transformation Driven by SMEs
The numbers tell a compelling story. Our recently commissioned study “Value of Acceptance” aims at understanding the digital payment landscape across the region across CEMEA (the Central Europe, Middle East and Africa region) and reveals significant growth potential for digital payments, especially among small and medium-sized businesses (SMEs).
A closer look at the data from Egypt, Iraq, Morocco, and Pakistan reveals a dynamic tapestry of progress and persistent challenges, underscoring the region’s remarkable adoption of digital payments as a catalyst for economic transformation. The convergence of rising mobile connectivity, government-backed digital agendas, and collaborative industry efforts is broadening access, accelerating inclusion, and setting the stage for an increasingly resilient and digitally empowered MENA and Pakistan.
Egypt, with its vast SME sector, stands at the forefront of leveraging digitization to accelerate private sector growth and economic inclusion. Representing 98% of the private sector and contributing 43% to national GDP, empowering SMEs through digitalization, is crucial for Egypt’s continued prosperity.
Our Visa study reveals that 53% of Egyptian SMEs adopted digital payments in just two years, with 80% reporting positive revenue impacts.
Iraq, once considered a late adopter, is now experiencing unprecedented expansion in connectivity and digital commerce, signifying a leap in technological adoption and emerging as the region’s surprise growth champion. With over 36 million internet users representing 78.7% of the population, ubiquitous mobile connectivity reaching 100% (46 million active cellular connections in early 2024) , the study revealed that over 70% of SMEs embraced digital payments within a single year. The market projects explosive growth to $20.22 billion by 2028.
Morocco’s national agenda aims to position the country as a regional leader in digital infrastructure and strategy when they unveiled the ambitious $1.1 billion ‘Digital Morocco 2030’strategy. They also boast the region’s highest internet penetration with over 90%. Meanwhile, in Pakistan, digital acceptance is increasingly the norm among businesses, with over 50% SMEs stating they had started accepting digital payments for over two years.
Breaking Barriers, Unlocking Potential
While adoption rates soar and SMEs report tangible business benefits—from revenue growth to fraud reduction—the journey is nuanced, shaped by a spectrum of digital readiness, infrastructural maturity, and merchant sentiment. Educational barriers and onboarding complexities remain.
Educational gaps persist, with 55% of Egyptian cash-only SMEs still finding cash familiar, while 46% of Moroccan merchants viewing digital systems as complex. Pakistan, despite its maturity, sees 40% of merchants struggling with onboarding processes.
Security concerns, however, present opportunities for digital adoption rather than obstacles. Egyptian merchants worry about cash-related robbery (41%), while Iraqi businesses cite complicated accounting (49%) and operational risks (45%) with cash handling. Morocco shows the transformation’s impact – 56% report reduced fraud concerns after adopting card payments.
Digital infrastructure is gaining increasing attention across the region. Egypt shows 54% of cash-only SMEs planning POS acquisition within two years, while in Iraq 41% of SMEs are ready to invest in digital payment technologies.
Partnership-Driven Solutions
Visa is committed to fostering digital payment growth in the region through its collaboration with governments, financial institutions, businesses, and policymakers across the region. This includes innovation investments in innovative technologies like Tap to Phone, empowering businesses of all sizes to accept digital payments, as well as providing educational resources and best practices. Each market demands customized solutions respecting local dynamics, regulatory environments, and cultural preferences.
Building Tomorrow’s Economy Today
The digital transformation extends beyond payments; it’s about building stronger, more inclusive economies. I am looking forward to a very near future where Egyptian SMEs representing 98% of the private sector can access digital tools, when Iraqi entrepreneurs can focus on growth rather than cash management complexities, and when Moroccan and Pakistani businesses can serve customers regardless of cash availability, entire economies strengthen.
The opportunity is clear: globally, digital economy transitions generate 1-2% annual GDP growth. For regions where SMEs drive innovation and job creation, this transformation isn’t optional—it’s essential.
The future belongs to markets that embrace digital collaboration. We’re empowering the economic engines that will drive regional prosperity for generations to come.
