PayPal has entered into a partnership with UAE-based digital payments firm NEO PAY to enhance cross-border payment services for businesses nationwide, as rivalry heats up in the Gulf’s rapidly expanding eCommerce landscape.
As part of the agreement, UAE merchants will be able to accept PayPal transactions via NEO PAY’s acquiring platform. The integration aims to simplify merchant onboarding while enabling businesses—particularly small and medium-sized enterprises (SMEs)—to offer PayPal’s checkout solution to customers both locally and internationally.
The partnership comes amid sustained growth in the UAE’s eCommerce sector. According to Mordor Intelligence, the country’s online retail market is forecast to reach USD 21.18 billion by 2030, highlighting the rising need for scalable and efficient digital payment infrastructure. SMEs, which make up around 94% of businesses in the UAE and generate more than half of national GDP, stand to gain significantly from improved access to global payment networks.
Otto Williams, Senior Vice President, Regional Head and General Manager for the Middle East and Africa at PayPal, said the collaboration aligns with the company’s regional expansion plans. He noted that the UAE’s digitally progressive economy and growing eCommerce market present strong opportunities for innovation, adding that the partnership with NEO PAY deepens PayPal’s local presence and enables merchants, particularly SMEs, to better serve digital-first consumers while scaling their operations with confidence.
NEO PAY said the alliance will broaden the range of payment options available across its merchant base and reinforce its support for cross-border trade.
Vibhor Mundhada, CEO of NEO PAY, said the partnership will enable the acceptance of digital wallets across its eCommerce network, offering merchants secure and globally recognised payment solutions. He added that the integration is expected to enhance the checkout experience and help businesses expand beyond domestic markets.
From a strategic perspective, the collaboration positions PayPal alongside a local acquiring partner as international payment providers seek closer integration within Middle Eastern markets. For NEO PAY, incorporating PayPal’s widely recognised digital wallet strengthens its appeal to merchants aiming to reach and convert international customers.
