UAE Payments Get a PayPal Upgrade

For many small businesses in the UAE, selling online is no longer just about having a website. It’s about being able to accept payments easily, securely, and from customers anywhere in the world. That’s where a new partnership between PayPal and NEO PAY comes in.

PayPal, the global digital payments platform, has announced a strategic collaboration with NEO PAY, one of the UAE’s fast-growing digital payments companies. The goal is simple: make it easier for UAE merchants to accept PayPal payments and manage cross-border transactions without unnecessary friction.

With this integration, businesses across the UAE can now offer PayPal as a payment option at checkout. For customers, it means a familiar and secure way to pay online. For merchants, it removes some of the complexity that often comes with setting up international payment systems.

NEO PAY’s acquiring infrastructure will handle merchant onboarding and payment processing, helping businesses — especially SMEs — get started faster. This matters because many SMEs want to reach customers outside the UAE but often struggle with payment acceptance, compliance, and trust issues.

The timing also reflects how fast e-commerce is growing in the country. The UAE’s online retail sector is projected to reach over US$21 billion by 2030. At the same time, SMEs make up around 94 percent of all businesses in the UAE and contribute more than half of the nation’s GDP. Yet, many still face barriers when trying to sell internationally.

By adding PayPal to their checkout, local merchants can offer a payment method that many global customers already know and use. That familiarity can help build trust, reduce abandoned carts, and improve conversion rates — small details that make a big difference for growing businesses.

Otto Williams, Senior Vice President and Regional Head for the Middle East and Africa at PayPal, said the UAE’s digital economy continues to expand, and partnerships like this help merchants serve today’s online consumers more effectively. He added that combining PayPal’s global platform with NEO PAY’s local expertise allows businesses to scale with more confidence.

From NEO PAY’s side, the focus remains on simplifying payments for merchants. Vibhor Mundhada, CEO of NEO PAY, said the partnership enables their merchant network to offer globally recognised digital wallets, improving the checkout experience while supporting cross-border growth.

Beyond individual businesses, the collaboration also supports the UAE’s wider push toward digital commerce and financial inclusion. As more SMEs gain access to international payment tools, they are better positioned to participate in global trade without needing complex setups.

For UAE merchants, this partnership isn’t about chasing trends. It’s about removing everyday obstacles in online selling — making payments smoother, building customer trust, and opening doors to markets beyond borders.