How the new generations are shaping the future of payments in MENA

Fewer regions are moving faster than MENA. In just a few years, markets once dominated by cash have embraced digital payments at scale, and they’re not slowing down. From new payment methods to technologies that build trust and reduce fraud, the region is becoming a driving force in the future of commerce. 

Much of the data in this article is drawn from The State of Digital Commerce in MENA, research that inspired us to explore these insights further on stage at Thrive Abu Dhabi.

At the event, I hosted a panel unpacking the trends driving this transformation. The energy in the room made one thing clear: this isn’t a region adapting to change. It’s defining it.

The panel included Sami Louali, Chief Revenue Officer at Tamara and Nikola Cabarkapa, Chief Executive Officer at instashop – bringing perspectives from payments, retail technology, and on-demand commerce.

We explored how Gen Z and Millennials are reshaping ecommerce, from shifting channel behavior and checkout experiences to the sharp rise of BNPL, digital wallets, and in-app commerce.

A generation that’s driving transformation 

MENA is one of the youngest regions in the world. With more than half the population under 25, it’s a demographic that’s shaping priorities for payment providers, platforms, and merchants. 

At Tamara, a leading buy now, pay later provider in the Middle East, 80% of active users in Saudi Arabia are Gen Z and Millennials, with around 75% in the UAE. For Sami, this isn’t just a data point – it’s a strategic priority. “Understanding these generations is critical to our strategy. It’s not about following global trends, it’s about staying ahead of them locally.” 

Gen Z and Millennials bring new expectations to ecommerce. They want flexibility. They expect speed. And they aren’t afraid to switch if the payment option they want isn’t there. In fact, nearly 50% of Gen Z say they’ll abandon a purchase if their preferred payment method isn’t available at checkout.

The impact goes beyond just the youngest shoppers. Across the region, consumers are clear in their expectations – 24% say they won’t complete a purchase if the payment method they prefer isn’t offered. It’s a stat that underscores just how critical payment options are for conversion across age groups.

This is an active, always-connected generation. They’ve grown up with infinite choice and expect payment experiences that are smooth, fast, and naturally integrated into their lives.

Search, stream, scroll, shop

Consumer behavior online today boils down to four key modes: search, stream, scroll, and shop. Gen Z does all four – constantly.

Every year, trillions of searches take place online, with millions of new queries generated every single day. That constant curiosity is especially true of Gen Z, who issue more search queries than any other generation. And it’s not just what they search, but how. 

Search itself is becoming multimodal. It combines visual tools, voice, and features that make it easier than ever to act on impulse. Recent innovations like Google’s Circle to Search, a feature developed through partnerships between Google and leading mobile manufacturers, now allow users to circle anything on their screen, like a celebrity’s glasses, and instantly find where to buy them. It’s transforming how younger users discover and shop for products.

Google is now seeing 20 billion visual search queries per month, which is a huge leap from just two years ago. Visual Search AI tools let users find products by uploading or selecting images, rather than typing in keywords. Powered by AI, they match visual patterns to help shoppers discover similar products, particularly useful in ecommerce, where instant recognition can drive conversion. 

Gen Z is leading this shift, and adoption in MENA is already significant. According to our latest State of Digital Commerce in MENA report:

• 53% of shoppers have already used Visual Search AI tools, with 37% saying they trust and will continue to use them
• Similarly, 45% have used generative chat, and 47% have used voice search to support their purchases

The rise of BNPL and what comes next 

One of the defining trends in Gen Z and Millennials is the rise of BNPL. But the real story is why it’s gained such traction. 

In the region, a huge share of the population doesn’t have access to credit cards. BNPL isn’t replacing traditional credit, it’s filling a gap that banks aren’t solving. 

Barriers to credit are high. In the UAE, a salary of AED 8,000 is typically required to obtain a credit card. Yet over 60% of the population earns less than AED 5,000. For millions of consumers, BNPL is the only path to purchasing flexibility.

That makes accessibility a key driver of growth. But convenience is just as important. BNPL offers simplicity, transparency, and speed. It also integrates easily with Apple Pay and other tokenized methods, making it a perfect fit for mobile-first shoppers.

And it’s working. “We started Tamara four years ago, and we have already reached 25% of Gen Z and Millennials in Saudi Arabia,” said Sami. He also noted that 30% of Millennials and Gen Z are using BNPL weekly, compared to 10% of Gen X. This rapid adoption is part of a broader shift in how younger generations engage with payments.

And it’s not just for big-ticket items. As Nikola noted, “People are buying flowers on installments. Fragrances. Even magnesium supplements because of a TikTok trend,” he explained. When the option is available, younger consumers use it – and they come back. 

Speed, trust, and the challenge of staying ahead 

If Gen Z sets the tone, payment infrastructure has to keep up. 

At instashop, digital payments now account for 98% of transactions in the UAE. That shift didn’t happen overnight. As Nikola shared, “It took 10 years of building trust, and even now, every new country brings a new challenge. Egypt, for example, is only at 75% digital. Trust takes time.”

Once trust is built, expectations spike. Buying behavior now shifts at unprecedented speed. A single trend on platforms like TikTok can reshape demand almost overnight. Payment infrastructure needs to adapt just as fast.

In the last year, trust has become a make-or-break factor. According to our State of Digital Commerce in MENA 2025 report:

• 22% of MENA consumers abandoned carts over payment safety concerns 
• 27% won’t complete a purchase without verification 
• 50% would lose trust in a brand due to poor payment performance

Trust is the foundation, relevance is the challenge, and both require constant attention. 

One area where trust is rapidly evolving is Digital ID. Adoption is accelerating across MENA, and consumer confidence is growing fast. According to our latest report:

• 63% of MENA consumers see it as the future 
• 70% in KSA and 68% in UAE are comfortable with an international Digital ID wallet
• Facial recognition for verification is already gaining ground in the UAE (35%) and KSA (29%)

What’s next: Predictions and possibilities 

When asked about the future, our panelists shared bold, but grounded, perspectives on what the next era of payments might look like. 

Sami highlighted several trends: continued growth of BNPL and APMs, rising interest in blockchain and crypto, and the emergence of invisible payments and social commerce.

Another panelist pointed to hyper-personalization as one of the biggest trends shaping the future of online shopping. For the first time, technology enables us to activate it – to truly harness data to deliver more relevant and valuable experiences. And with that value comes something consumers care deeply about: speed. 

Nikola imagined an even more effortless future: “My dream? A world where you don’t even think about payments. Everything you need – groceries, medicine, essentials – just shows up. That’s the future we’re building toward.” 

Why performance starts with people

At Checkout.com, we know performance isn’t just about tech, it’s about understanding how people live, buy, and connect. 

As this panel made clear, the future of payments in MENA belongs to those who move fast, stay flexible, and meet the next generation where they are.

Whether it’s BNPL, voice shopping, or effortless digital wallets – the challenge is to keep evolving. Because when payments perform, everyone benefits.