03.06.2025
From regulatory shifts in Europe to mobile-first advances in Africa and the Gulf states’ push toward cashless economies, EMEA is a hotbed of payment transformation. For merchants, fintechs, and PSPs, understanding these regional shifts is essential for staying relevant—and competitive.
1. Digital Wallets Are Outpacing Cards
Across EMEA, digital wallets are rapidly overtaking traditional cards as the preferred way to pay. In Europe, Apple Pay and Google Pay are now widely accepted and used in-store and online, with wearables also gaining traction. In the Middle East, local wallets like STC Pay in Saudi Arabia and Payit in the UAE are seeing fast growth. In Africa, mobile wallets like M-Pesa are more than just a convenience—they’re core financial infrastructure.
This shift isn’t just about convenience; it’s about user trust and device-first behavior. Merchants who prioritize wallet integration reduce friction at checkout and boost conversion rates—especially on mobile.
2. Bank Transfers and A2A Payments Are on the Rise
Thanks to open banking and the push for real-time payments, account-to-account (A2A) methods are gaining ground across EMEA. The SEPA Instant Credit Transfer scheme in the EU continues to expand, and countries like Bahrain and the UAE are investing heavily in real-time payment infrastructure.
In markets such as Poland and the Netherlands, bank transfers are already the default for e-commerce. A2A payments benefit merchants with lower fees and reduced fraud risk, while consumers enjoy faster settlement and no need for card details. As API-driven access to bank accounts becomes more standardized, A2A will play an even greater role in everyday payments.
3. Regulation Is Getting Stricter—and More Coordinated
Regulators across the region are moving toward tighter oversight and more unified standards. In the EU, the proposed PSD3 and Financial Data Access (FIDA) frameworks aim to strengthen consumer protection, enforce stronger authentication, and ensure fair access to banking infrastructure.
At the same time, Middle Eastern and African markets are developing their own frameworks around licensing, data localization, and fraud control. Whether you're operating in one country or across several, the message is clear: compliance is becoming more complex, and proactive regulatory strategy is no longer optional.
4. BNPL Faces Growth and Growing Scrutiny
Buy Now, Pay Later (BNPL) services continue to expand in EMEA, but the era of unchecked growth is over. In Europe, regulators are placing more responsibility on providers to assess borrower risk and be transparent with terms. In emerging markets across the Middle East and Africa, BNPL is growing fast—but often in environments with limited consumer credit history.
For merchants, BNPL can boost conversion and average order value, but it also requires careful selection of partners who prioritize user protection and regulatory compliance. What used to be a “nice-to-have” at checkout is now a product under scrutiny.
5. Cross-Border eCommerce Drives Local Payment Expectations
The growth of cross-border eCommerce in EMEA means shoppers are encountering international brands more than ever—but their expectations remain local. Consumers want to pay in their own currency, use familiar methods, and avoid unexpected fees or foreign conversion steps.
Offering Klarna in Germany, Mada in Saudi Arabia, or M-Pesa in Kenya isn’t just helpful—it’s expected. Payment providers that enable local acquiring and currency conversion directly within the checkout flow are fast becoming the preferred partners for merchants with global ambitions.
6. AI Is Powering the Next Generation of Fraud Prevention
As card-not-present fraud continues to rise across the region, especially in fast-growing sectors like digital services and gaming, businesses are turning to AI to stay ahead. Unlike static rules, machine learning tools can adapt to new fraud patterns in real time.
From device fingerprinting to behavioral analytics and dynamic risk scoring, AI-driven solutions are helping merchants and PSPs reduce fraud without sacrificing approval rates. This is especially critical in high-volume sectors where a single blocked transaction can mean a lost customer.
7. Instant Payouts Are Gaining Momentum
In industries that rely on real-time experiences—such as affiliate marketing, gig platforms, and iGaming—instant payouts are quickly becoming a competitive differentiator. Merchants increasingly expect the ability to process on-demand withdrawals, offer real-time disbursements, and support wallet-to-bank or bank-to-wallet flows without delay.
The rise of faster payment rails across the region is enabling this shift. As expectations around immediacy grow, PSPs that offer instant settlement features are positioning themselves as long-term partners.
What It Means for Merchants and PSPs in 2025
The payment landscape in EMEA is evolving quickly, and the most successful players will be those who adapt with intention. It’s no longer enough to offer a single global solution—local adaptation, regulatory readiness, and infrastructure flexibility are now the baseline for growth.
Key areas of focus should include:
- Integrating regionally dominant APMs
- Aligning with evolving fraud prevention tools
- Preparing for regulatory tightening, including PSD3 and FIDA
- Supporting local acquiring and multi-currency processing
- Enabling faster, more reliable payouts
At COLIBRIX, we help merchants and platforms scale across EMEA with payment solutions tailored to local markets—backed by strong compliance, flexible APIs, and built-in fraud control.
Regional Payments, Real Opportunity
While EMEA’s markets are diverse, the direction is unified: more digital, more local, and more secure.
The growth of digital wallets, real-time payments, embedded finance, and AI-driven fraud tools is not just transforming how payments happen—it’s raising the bar for what users expect.
For businesses that can stay ahead of regulation, localize intelligently, and move fast with the right partners, EMEA remains one of the most promising regions for global growth in 2025 and beyond.