In a move poised to reshape the cross-border payments ecosystem across the Middle East and Africa (MEA), PayPal has partnered with TerraPay to streamline international fund transfers, enhance financial inclusion, and stimulate regional economic growth.

Announced via a press release, the collaboration leverages real-time payment infrastructure to connect banks, mobile wallets, and financial institutions, thereby removing traditional frictions associated with cross-border transactions. The strategic alliance reflects a growing trend toward RegTech innovations that prioritize interoperability, compliance automation, and financial accessibility.

According to Mordor Intelligence, the MENA digital payments market is projected to reach $251.34 billion by 2025, with a forecasted surge to $422.56 billion by 2030, underpinned by increased mobile wallet usage, regulatory transformation, and digital infrastructure investments.

Through this partnership, TerraPay will act as a RegTech enabler, facilitating secure account linking that allows users of mobile wallets and banks across MEA to seamlessly send funds to PayPal accounts. This development not only enhances payment interoperability but also strengthens regulatory compliance in cross-border transactions.

“By partnering with TerraPay, we are making it easier for businesses and individuals to make cross-border transactions—quickly, securely, and without friction,” said Otto Williams, Senior Vice President, Regional Head and General Manager, MEA at PayPal. “Together, we’re helping unlock economic opportunity and build a more connected, inclusive financial future for the Middle East and Africa region.”

Echoing this sentiment, Ani Sane, Co-Founder and Chief Business Officer at TerraPay, emphasized the role of compliance technology and financial connectivity in closing inclusion gaps:

“This partnership with PayPal marks a major milestone in expanding financial access across the Middle East and Africa. Our robust global infrastructure helps overcome the limitations of traditional banking systems.”

“With built-in interoperability, TerraPay connects various financial systems—from banks to mobile wallets—making it easier for businesses to scale and users to transact seamlessly on a global scale. Together, we are driving a new era of digital payments,” Sane added.

The alliance highlights a growing reliance on Regulatory Technology Solutions to manage regulatory reporting, enhance transaction transparency, and ensure compliance with anti-money laundering (AML) and Know Your Customer (KYC) protocols in an increasingly digital global economy.

As regulatory frameworks evolve to support digital economies, partnerships like that of PayPal and TerraPay are instrumental in delivering secure, inclusive, and compliant cross-border payment ecosystems, reinforcing Africa and the Middle East’s emerging position in the global RegTech landscape.