With Eyad Musharbash, Regional Head/Operating Partner Levant Region, Bahrain, Oman & Qatar.
In the ever-evolving world of digital commerce, seamless and secure transactions are the foundation of business success. Behind the scenes, payment orchestration platforms act as the invisible engine, enabling merchants to manage complex payment flows, optimize transaction success rates, and provide consumers with frictionless checkout experiences. While payment orchestration is a global phenomenon, its role is especially crucial in the Levant & Southern Gulf regions, where a fragmented financial landscape and diverse consumer payment preferences require a more integrated and adaptable approach.
The Rise of Payment Orchestration
Payment orchestration platforms (POPs) serve as intermediaries that connect merchants to multiple payment service providers, acquirers, and fraud detection tools. These platforms optimize routing, reduce transaction failures, and enhance security, ensuring that businesses can process payments efficiently across different markets.
As digital commerce continues to grow, the payment landscape is becoming more complex. Merchants must cater to multiple payment methods—credit and debit cards, digital wallets, bank transfers, and even cash-on-delivery—while complying with regional regulations and optimizing for cost efficiency. Payment orchestration streamlines this process by offering a single integration point, reducing operational overhead and enhancing consumer trust.
Payment Trends in the Levant Region
The Levant and Southern Gulf regions have witnessed significant digital transformation in recent years. While cash remains prevalent, digital payments are on the rise due to increased smartphone penetration and the expansion of fintech services. According to the World Economic Forum, Middle East, is the fastest-growing real-time payments market globally. In 2022, real-time time payments in the region stood at $675 million; by 2027, they’re expected to reach $2.6 billion. According to Visa Middle East, digital wallets are rapidly emerging as a preferred payment method, with immense potential to enhance financial inclusion by offering secure and efficient transactions. In the Levant region, fintechs identify increasing digitization (83%) and market readiness (78%) as the primary drivers of growth. Buy-Now-Pay-Later (BNPL) adoption is set for acceleration, with current penetration ranging from 5% to 10% across the Levant region. Meanwhile, artificial intelligence is beginning to play a role in the sector, though its adoption remains at a foundational stage.
Despite these advancements, significant challenges persist. Visa Middle East reports that 70% of fintech’s cite regulatory requirements and compliance as key barriers, prompting some to explore jurisdictions with more supportive frameworks. Access to funding remains a priority, with bank credit accounting for just 17% of available financing. Additionally, one in three fintech’s struggle with talent acquisition and retention. The region’s banking system remains siloed, treating independent fintech’s as competitors rather than collaborators. However, international expansion is gaining momentum, with 70% of Levant fintech’s pursuing cross-border growth, particularly in the UAE and Saudi Arabia, where regulatory ease and funding opportunities are more accessible.
Several factors are driving this shift:
Regulatory Reforms: Governments in the Levant are implementing digital payment regulations to enhance financial inclusion and combat cash dependency. Further, Central banks across the Levant region have been highly supportive of initiatives to enhance digital payments, fostering innovation and financial inclusion
E-Commerce Growth: The expansion of online marketplaces has increased the demand for flexible, cross-border payment solutions.
Consumer Preferences: Younger, tech-savvy consumers are more inclined to use mobile wallets, buy-now-pay-later (BNPL) services, and digital banking solutions.
Despite these advancements, the region faces challenges such as inconsistent banking infrastructure, high transaction costs, and varying regulatory frameworks. Payment orchestration can address these pain points by enabling merchants to integrate multiple payment providers, ensure compliance, and optimize transactions for local and international customers.
The Business Case for Payment Orchestration
For businesses operating in the Levant, payment orchestration offers distinct advantages:
- Multi-PSP Flexibility: Integrating with multiple PSPs for intelligent, optimized routing, ensuring higher transaction success rates and reducing reliance on a single provider.
- Unified Integration: One API for all payment methods and gateways
- Improved Conversion Rates: Smart routing, retries, and failover mechanisms minimize declines, helping customers complete purchases successfully
- Cost Efficiency: Dynamic routing and real-time analytics allow for routing transactions through the most cost-effective options.
- Enhanced Security: Centralized fraud prevention with customizable risk rules, ensuring compliance with regulations and protection against fraud. Real-time risk monitoring and customizable rules.
- Global Reach: Offers various local payment methods, catering to a broader customer base with minimal effort.
- Compliance: Adherence to regional and global regulations, including PCI DSS
- Multiple Payment Options: Integration with cards, wallets, and alternative payment methods
The Future of Payments in the Levant
The digital payment ecosystem in the Levant is at an inflection point. While cash-on-delivery still dominates in certain segments, a growing number of businesses are adopting digital-first payment strategies. Payment orchestration will play a critical role in this transformation by reducing complexity, lowering costs, and improving user experiences.
As more players enter the space, competition among orchestration providers will drive innovation, leading to more localized solutions tailored to the specific needs of merchants and consumers in the region.
Payment orchestration is not just a backend function—it is a strategic enabler of digital commerce, particularly in emerging markets like the Levant. By simplifying the payment process, improving security, and enhancing consumer experiences, orchestration platforms are paving the way for a more connected and efficient financial ecosystem. As businesses in the region continue to embrace digital transformation, payment orchestration will be the key to unlocking new opportunities in the evolving world of global commerce.
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