The Middle East and North Africa have emerged as one of the world’s most forward-moving digital economies, according to Checkout.com’s fifth annual State of Digital Commerce in MENA 2025 report. The study highlights how bold moves by central banks, regulators, and fintech innovators — combined with a digitally native population — are accelerating the region’s shift to a tech-driven economy.

Over the past five years, daily online transactions across MENA have surged by 139%, while Checkout.com’s own processing volumes have climbed 626%, including a 78% year-on-year increase. Food delivery now dominates as the leading eCommerce category, capturing 47% of online spending, followed by clothing and fashion (38%) and a tie between electronics and beauty products (34%).

MENA consumers are also reshaping financial habits. In the UAE alone, the use of Account Funding Transactions (AFTs) — which enable real-time digital payouts — has grown 388% in the past year. This shift is extending digital commerce well beyond shopping into areas like salary payments, gig economy wages, and peer-to-peer transfers. Meanwhile, the once-dominant cash-on-delivery model has dropped by 60% since 2020.

Fintech and AI continue to be key pillars of the region’s evolution. A reported 62% of users now engage with fintech platforms for investments and wealth management, while 43% send money weekly via digital wallets or apps. AI-driven shopping is already widely adopted, with 45% of consumers having used generative chatbots and 53% using visual search tools to support online purchases.

Also Read: A Guide To Digital Payment Methods In The Middle East

However, this increased digital maturity comes with new risks: Reports of online fraud have increased sharply — from 33% in 2023 to 49% in 2024 — driven in part by scams involving AI and deepfakes. Checkout.com highlights the growing need for intelligent fraud prevention, pointing to tools such as machine learning, behavioral biometrics, and anomaly detection as critical to maintaining security without compromising performance.

“In this increasingly competitive landscape, payment performance has become a critical differentiator,” said Remo Giovanni Abbondandolo, General Manager, MENA at Checkout.com. “Fast, secure, and intelligent payments are foundational to commercial success — not just at the point of transaction, but across the entire customer experience”.