PayPal has struck a partnership with UAE acquirer NEO PAY to let local merchants accept PayPal payments, giving businesses a faster route to overseas customers and cross-border sales.

The deal connects PayPal directly to NEO PAY’s acquiring infrastructure, allowing online sellers to switch on PayPal at checkout without separate integrations or complex onboarding. For smaller merchants, that removes a common barrier to selling internationally: access to a payment method foreign shoppers already recognize.

The timing is deliberate. The UAE’s e-commerce market is projected to reach $21.18 billion by 2030, according to Mordor Intelligence, as online retail and digital services continue to outpace traditional channels. SMEs — about 94% of all businesses in the country and more than half of GDP — account for much of that activity, yet often lack the tools to handle cross-border payments at scale.

For PayPal, the agreement extends its footprint in the Middle East and Africa through a local partner rather than a standalone build-out. “Deepening our presence through this partnership with NEO PAY is a critical step in our regional growth strategy,” said Otto Williams, Senior Vice President, Regional Head and General Manager, Middle East and Africa, at PayPal. “By integrating PayPal, merchants, especially SMEs, can better serve today’s digital-first consumers and scale with confidence”.

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NEO PAY, which focuses on digital acquiring for e-commerce merchants, is positioning the tie-up as a way to broaden payment choice while keeping operations simple. “This partnership allows us to provide secure, trusted, and globally recognized payment options — enhancing the checkout experience and supporting our merchants’ growth across borders,” said Vibhor Mundhada, CEO of NEO PAY.

The move reflects a wider shift in the Gulf’s payments stack. Local processors are increasingly acting as gateways to global wallets and networks, a model that fits the UAE’s push to grow exports, support SMEs and cement its role as a regional digital commerce hub. For merchants, it’s straightforward: fewer hoops at checkout, more reach beyond the country’s borders.