PayPal has entered into a strategic partnership with UAE-based digital payments provider NEO PAY to enable merchants across the Emirates to accept PayPal payments, a move aimed at accelerating cross-border trade for the region’s small businesses.
The collaboration will integrate PayPal’s checkout capabilities into NEO PAY’s acquiring infrastructure. The primary goal is to streamline merchant onboarding and open international markets for local businesses, particularly small and medium-sized enterprises (SMEs).
Tapping into a $21bn market
The partnership comes as the UAE’s e-commerce sector continues to expand rapidly. According to data from Mordor Intelligence cited in the announcement, the sector’s value is projected to reach $21.18billion by 2030.
SMEs are expected to be the primary beneficiaries of this integration. Small businesses currently constitute 94 per cent of all companies in the UAE and contribute to more than half of the country’s GDP. By adopting PayPal’s trusted checkout, these merchants can potentially increase conversion rates and build confidence with international buyers.
Otto Williams, senior vice president, regional head and general manager, Middle East and Africa at PayPal, described the move as a “critical step” in the company’s regional growth strategy.
“The UAE is a vibrant and digitally forward economy with a rapidly expanding e-commerce landscape and a strong appetite for financial innovation,” Williams said. “By integrating PayPal, merchants, especially SMEs, can better serve today’s digital-first consumers and scale with confidence.”
Streamlining the checkout experience
NEO PAY, known for its digital payment acquiring services, aims to use the partnership to help merchants navigate the complexities of modern e-commerce.
Vibhor Mundhada, CEO of NEO PAY, commented: “We at NEO PAY are thrilled to partner with PayPal on the acceptance of digital wallets across our e-commerce merchant network. This partnership allows us to provide secure, trusted, and globally recognized payment options—enhancing the checkout experience and supporting our merchants’ growth across borders.”
The collaboration is positioned to reinforce the UAE’s status as a regional hub for digital commerce while advancing financial inclusion and the country’s broader digital transformation goals.
