PayPal taps NEO PAY to expand cross-border payments in UAE

PayPal has partnered with UAE-based digital payments provider NEO PAY to expand cross-border payment capabilities for businesses across the country, as competition intensifies in the Gulf’s fast-growing eCommerce market.

Under the agreement, merchants in the UAE will be able to accept PayPal payments through NEO PAY’s acquiring infrastructure. The integration is designed to streamline merchant onboarding and enable businesses—particularly small and medium-sized enterprises (SMEs)—to offer PayPal’s checkout option to customers domestically and internationally.

The move comes as the UAE’s eCommerce sector continues to expand. Market research firm Mordor Intelligence projects the country’s online retail market will reach US$21.18 billion by 2030, underscoring the increasing importance of scalable digital payment infrastructure. SMEs, which account for approximately 94% of companies in the UAE and contribute more than half of GDP, are expected to be key beneficiaries of 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 partnership reflects the company’s regional growth ambitions. “The UAE is a vibrant and digitally forward economy with a rapidly expanding eCommerce landscape and a strong appetite for financial innovation,” he said. “Deepening our presence through this partnership with NEO PAY is a critical step in our regional growth strategy. By integrating PayPal, merchants, especially SMEs, can better serve today’s digital-first consumers and scale with confidence.”

NEO PAY, which provides digital acquiring solutions in the UAE, said the collaboration will allow it to expand payment options across its merchant network and strengthen support for cross-border commerce.

“We at NEO PAY are thrilled to partner with PayPal on the acceptance of digital wallets across our eCommerce merchant network,” said Vibhor Mundhada, CEO of NEO PAY. “This partnership allows us to provide secure, trusted, and globally recognised payment options—enhancing the checkout experience and supporting our merchants’ growth across borders.”

Strategically, the partnership aligns PayPal with a local acquiring partner at a time when international payment providers are seeking deeper integration within domestic ecosystems in the Middle East. For NEO PAY, the addition of PayPal’s globally recognised wallet strengthens its value proposition to merchants looking to attract international customers.

The collaboration also reflects a broader trend in embedded cross-border payments, where global networks and local acquirers combine to simplify settlement, reduce friction in checkout, and expand market access for SMEs. As the UAE positions itself as a regional digital commerce hub, such partnerships are likely to play an increasingly central role in enabling outward-facing trade and digital economic growth.