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As the leading enabler of embedded finance in MENA, we’ve witnessed firsthand how financial services are becoming increasingly and seamlessly integrated into everyday customer experiences. Globally, the embedded finance market was valued at $82.7 billion in 2023 and is projected to reach $570.9 billion by 2033, growing at a compound annual growth rate (CAGR) of 1.3% from 2024 to 2033.1

Closer to home, the MENA region is carving out its space in this sector. With a market value of $10 billion, embedded finance in MENA is expected to grow by 45% by 2030 – at a rate more than twice as fast as the rest of the world.2

The Embedded Finance Revolution in MENA

The question we hear most has shifted from, “What is embedded finance?” to “How quickly can we embed financial services into our platform?”

“Embedded finance is redefining customer experiences and unlocking new revenue systems for businesses,” says Omar Onsi, CEO of NymCard. “It’s about more than payments – it’s about building meaningful, lasting relationships with customers.”“Embedded finance is redefining customer experiences and unlocking new revenue systems for businesses,” says Omar Onsi, CEO of NymCard. “It’s about more than payments – it’s about building meaningful, lasting relationships with customers.”

Let’s explore the key trends that are poised to shape MENA’s financial ecosystem in 2025.

AI Integration: The Next Big Thing

No longer just a buzzword, AI is now the backbone of innovation in embedded finance, particularly in the MENA region. AI is revolutionizing embedded finance by enhancing processes like Know Your Customer (KYC) compliance and transaction monitoring. By analyzing large datasets, AI reduces onboarding times and improves fraud detection. This technology ensures faster, more secure transactions while personalizing customer experiences.

“AI is enabling a paradigm shift in finance by empowering us to anticipate customer needs with unparalleled accuracy,” says Wojciech Soltysiak, Chief Technology Officer at NymCard. “From streamlining compliance, risk and fraud prevention to delivering hyper-personalized safe experiences, AI isn’t just a tool—it’s the trust engine of modern finance. Additionally, AI is helping to uncover untapped areas of potential new revenue that were previously unnoticed.”

In widely understood Operations, GenAI Agentic Apps are managing routine inquiries, allowing human agents to focus on more complex issues, not repeatable tasks . This transformation is improving response times and enhancing the overall customer experience, operating seamlessly 24 x 7.

Expansion Across Industries

While retail and e-commerce has long been the playground for embedded finance, other sectors are now leveraging its potential. This cross-industry integration is unlocking new revenue streams and enhancing operational efficiencies, particularly in B2B transactions.

“Embedded finance is breaking boundaries across industries,” explains Shiraz Ali, Chief Business Officer at NymCard. “By seamlessly integrating financial services into non-financial platforms, embedded finance creates frictionless experiences, spurring innovation and growth opportunities for all business segments .”

For example, online travel agencies face significant challenges in managing real-time payments to hotels, airlines, and car rental companies. By implementing prepaid cards, travel platforms can streamline payments, making funds available instantly as transactions are approved. This approach minimizes errors and fraud while providing valuable transaction data to optimize rewards programs.

Similarly, in healthcare, virtual cards and tailored payment solutions offer a faster, more efficient way to handle supplier payouts, staff salaries, and expense management. These solutions reduce fraud risks, accelerate reconciliation processes, and maintain operational efficiency.

The Growth of Cashless Economies

The shift towards cashless transactions is accelerating, with governments and fintechs in MENA playing a pivotal role. For instance, Saudi Arabia’s Vision 2030 plan has already driven a significant increase in the adoption of contactless payments for in-person transactions, rising from just 4% in 2017 to an impressive 98% today.3 Mobile wallets, contactless payments, and QR code solutions are becoming the norm.

“Cashless economies are not just about convenience—they’re about financial inclusion,” notes Nabil Tabbara, SVP – Strategic Partnerships at NymCard. “This transition empowers underserved populations while driving economic growth.”

Advancements in Cross-border and Real-time Payments

The MENA region, with its diverse economies and extensive expatriate population, is a hotspot for cross border transactions. The Cross Border Payments Market in the MENA region is projected to reach USD 222.10 billion in 2025, growing at CAGR of 7.36% to reach USD 316.78 billion by 2030.4

Real-time payment solutions are becoming a priority, enabling faster and more cost-effective money transfers. These innovations benefit consumers and increase trade across borders, fostering regional economic integration.

“At NymCard, we’re enabling businesses to harness the power of real-time payments to streamline cross-border transactions,” says Mario Wehbe, Chief Product Officer at NymCard. “Our solutions are designed to reduce settlement times, lower costs, and provide transparency, helping businesses operate seamlessly across borders and unlock new growth opportunities in the interconnected global economy.”

Adoption of Multi-rail Payment Ecosystems

Multi-rail systems are emerging as a more efficient and secure way to conduct transactions. These frameworks allow businesses and consumers to choose the most suitable payment rail for their needs, whether it’s card networks, real-time payments, or blockchain. MENA’s adoption of multi-rail frameworks will support the region’s diverse and growing payment landscape.

“Multi-rail systems are revolutionizing the payments landscape in MENA by introducing a new level of flexibility and efficiency,” says Shiraz Ali. “By enabling businesses to choose the preferred payment rail for every transaction, we’re creating a robust ecosystem that caters to the diverse needs of a digital-first economy.”

Enhancing Credit Accessibility

Access to credit has long been a challenge for SMEs and consumers without a formal banking history in the MENA region. However, the rise of embedded lending solutions is transforming this landscape. Beyond buy-now-pay-later (BNPL) services, microfinance and digital supply chain finance are addressing the unique needs of underserved markets.

“For far too long, small businesses and unbanked individuals in MENA have been sidelined from traditional credit systems,” explains Amit Amin, VP of Payments at NymCard. “Embedded lending solutions are breaking down these barriers by leveraging alternative data to assess creditworthiness. This means more opportunities for SMEs to grow and for consumers to access financial tools they never had before.”

Microfinance is experiencing significant growth. In Saudi Arabia, the microfinance market was valued at $0.68 billion in 2021 and is projected to reach $1.68 billion by 2031, growing at a CAGR of 9.4%.5 Digital supply chain finance, meanwhile optimizes cash flow by financing receivables and payables, providing liquidity for small businesses to invest in growth.

Looking Ahead

MENA is rapidly positioning itself as a hub for financial innovation, with embedded finance playing a pivotal role. These trends highlight the region’s potential to create more inclusive, efficient, and consumer-friendly financial services. For businesses, the opportunities are vast – from unlocking new revenue streams to fostering stronger customer relationships.

The embedded finance revolution is reshaping the way MENA does business. Are you ready to lead the charge? Partner with NymCard and let’s redefine what’s possible in 2025 and beyond.

 

 

1 Allied Market Research – Source
2 Mingzulu – Source
3 Arab News – Source
4 Mordor Intelligence – Source
5 Allied Market Research – Source