“The Middle East and Africa are home to some of the most dynamic and rapidly evolving businesses in the world,” PayPal CEO Alex Chriss said in the release.

“By dedicating a $100 million investment to this region over the coming years, we’re investing in the technologies, partnerships, and solutions that will help entrepreneurs scale faster, expand their reach beyond borders, and unlock new opportunities for growth in the digital economy.”

The announcement follows the introduction of PayPal’s first regional hub in Dubai, designed to help businesses via improved payments and security as well as wider access to international markets. PayPal Ventures has also invested in several startups in the region, including Tabby, Paymob and Stitch, the release added.

Research by PYMNTS Intelligence has charted the rise of digital commerce in the Middle East. For example, 89% of retail shoppers in the United Arab Emirates (UAE) use digital tools while browsing in physical stores, with 45% of UAE grocery shoppers doing the same.

“And, when surveyed about the quality of their digital shopping features, respondents shared what turned out to be the second highest level of customer satisfaction among the six countries we studied,” PYMNTS wrote. “This likely explains why 71% of UAE consumers used digital features to enhance their most recent shopping experience.”

Meanwhile, PYMNTS CEO Karen Webster wrote Wednesday about the recent multi-year partnership between PayPal and Google amid a growing embrace of agentic commerce. With this collaboration, PayPal’s infrastructure will be integrated deeper into Google’s products. Google Cloud will become PayPal’s AI “backbone,” she wrote.

“It will be one of several experiments taking place with agentic commerce,” the report added. “In truth, it is very early days. Perplexity partnered with PayPal for commerce in AI search. OpenAI is working with Shopify to connect prompts to merchant catalogs. firmly connects Perplexity to millions of merchants for app checkout.”

PayPal’s approach is centered around bringing wallets and accounts to AI models, the thinking being that consumers interact with agents via payment platforms, making wallets “the bridge between intent and transaction.”

“The distinction matters because it shows how the wallet-centric worldview is already being challenged by infrastructure that doesn’t need wallets at all,” Webster added. “And how those with a vested interest in them are already doubling down.”

Perfect — thanks for dropping that in. I’ll now weave your provided content into a polished, longer article, adding storytelling and comparisons to other financial institutions (like Visa, Mastercard, Stripe) while keeping it engaging for your readers.

PayPal Commits $100 Million to Drive Digital Commerce Growth in the Middle East and Africa

PayPal is making a bold move: a $100 million investment to expand digital commerce in the Middle East and Africa (MEA). This funding will be deployed through minority investments, acquisitions, PayPal Ventures, and technology deployments, all aimed at helping local businesses scale, fostering innovation, and bringing millions more consumers into the digital economy.

“The Middle East and Africa are home to some of the most dynamic and rapidly evolving businesses in the world,” said Alex Chriss, PayPal CEO. “By dedicating a $100 million investment to this region over the coming years, we’re investing in the technologies, partnerships, and solutions that will help entrepreneurs scale faster, expand their reach beyond borders, and unlock new opportunities for growth in the digital economy.”

Building on Strong Foundations

This announcement builds on PayPal’s earlier decision to launch its first regional hub in Dubai, a move designed to support businesses with more secure payments and greater access to global markets. Through PayPal Ventures, the company has already backed local startups such as Tabby, Paymob, and Stitch. These investments reflect PayPal’s commitment to building long-term partnerships in MEA’s fast-growing digital ecosystem.

A Market Ripe for Growth

Recent research underscores why MEA is becoming a global hotspot for fintech and e-commerce. According to PYMNTS Intelligence, 89% of retail shoppers in the UAE use digital tools while browsing in physical stores, and nearly half of grocery shoppers do the same. Customer satisfaction levels are among the highest globally, with 71% of UAE consumers using digital features during their most recent shopping trip.

These figures highlight the consumer readiness for digital-first solutions — and why global institutions are rushing to secure a foothold. Visa has invested heavily in African fintech giants like Interswitch, while Mastercard has expanded partnerships with M-Pesa and Airtel Money. Stripe, meanwhile, is quietly moving into Africa through alliances with local processors. PayPal’s $100 million bet places it squarely in competition with these global heavyweights, but with a unique focus on cross-border commerce and digital wallets.

The AI and Agentic Commerce Connection

 

 

 

 

 

Beyond payments, PayPal is also aligning its strategy with the rise of agentic commerce — where artificial intelligence becomes the interface between consumers and merchants. Through its multi-year partnership with Google, PayPal will integrate deeper into Google’s ecosystem, with Google Cloud serving as PayPal’s AI backbone.

As Karen Webster of PYMNTS explained, PayPal is working on a wallet-centric approach where digital wallets serve as the bridge between a consumer’s intent and a completed transaction. Competitors are also moving quickly: Perplexity partnered with PayPal to add checkout to AI-powered search, OpenAI is working with Shopify to link prompts to merchant catalogs, and Firmly is connecting AI agents to millions of merchants.

The question for the future: will wallets remain the center of digital commerce, or will new infrastructure bypass them altogether? PayPal is betting heavily that wallets still matter — and it wants to ensure its own platform becomes indispensable in this AI-driven economy.

Transforming Everyday Lives

The impact of these investments will be felt not only in boardrooms but in everyday lives. Picture a small artisan in Nairobi who can now sell jewelry globally, receiving instant payments without relying on costly wire transfers. Or a student in Cairo paying tuition abroad through PayPal rather than navigating outdated banking hurdles. These stories illustrate why MEA is such an attractive market: it’s not just about growth metrics, but about expanding financial inclusion and empowering communities.

Challenges Ahead

Of course, opportunities come with obstacles. Regulatory complexities, currency volatility, and infrastructure gaps remain barriers. Competing players like Visa, Mastercard, and Stripe already have deep roots in different segments of the region. But by combining investments in fintech startups with AI-driven innovation and cross-border expertise, PayPal is positioning itself to overcome these hurdles.

A Long-Term Bet

Ultimately, PayPal’s $100 million commitment is a strong signal that it sees MEA not just as a developing region, but as a cornerstone of its global strategy. In a world where digital wallets, AI, and cross-border trade are reshaping commerce, PayPal is determined to secure its place at the center of that transformation.