Paymob: Revolutionizing Digital Payments in the Middle East and Africa
The tech startup scene in regions like the Middle East and Africa is not often associated with successful ventures launched by young founders while still in school or shortly after dropping out. However, Paymob, founded by Islam Shawky, Alain El Hajj, and Mostafa Menessy, three undergraduates from the American University in Cairo, is a notable exception.
In a recent interview, Shawky highlighted the challenges they faced in the early days of Paymob. The lack of online payment methods in Egypt was a major hurdle for e-commerce businesses. This gap in the market inspired the trio to launch Paymob as a payment infrastructure for digital wallets in 2015, while they were still in college. What started as a small venture has now grown into a leading omnichannel gateway, offering over 50 payment methods and serving 350,000+ merchants across five countries in the region.
Paymob’s success is reflected in its funding milestones, with over $90 million raised to date, including a recent $22 million extension to its Series B round led by EBRD Venture Capital, bringing the total Series B raise to $72 million.
Cross-Selling Services to a Growing Merchant Base
Since our last coverage of Paymob, the fintech has significantly expanded its reach, now serving over 300,000 merchants across multiple countries. The company’s growth was fueled by its $50 million Series B round in 2022, co-led by PayPal Ventures. In addition to expanding its presence in Egypt and Pakistan, Paymob has entered new markets in Oman, Saudi Arabia, and the UAE.
Paymob’s CEO, Shawky, highlighted the evolution of the company’s product suite, including the launch of an app for SMBs and the introduction of new payment methods and financial products. By providing a range of services to merchants, from payment acceptance to working capital solutions, Paymob has successfully increased its average revenue per merchant.
Notably, Paymob achieved profitability in Egypt for the first time this year, with revenues growing sixfold since 2022. The company’s focus on cross-selling additional services has been a key driver of its profitability and growth.
Rapid Adoption of Online Payments in the UAE
The demand for digital payment solutions is on the rise in both Egypt and the Gulf region. In Egypt, 88% of consumers have used emerging payment methods, while in the UAE, digital payment adoption stands at 77% nationwide.
Paymob’s expansion into the UAE has been met with rapid success, with transaction volumes in the country matching its entire Egyptian business in just 14 months. The company’s growth in the UAE can be attributed to factors such as higher purchasing power, currency strength, and the prevalence of digital wallets.
While Egypt remains Paymob’s largest market, Shawky is optimistic about the country’s potential for digital payment adoption. With the support of the government and central bank, Paymob aims to help Egypt achieve the same level of digital payment adoption seen in the UAE.
In conclusion, Paymob’s innovative approach to digital payments, coupled with its strategic expansion and focus on merchant services, has positioned it as a leading fintech player in the Middle East and Africa. With continued support from investors and a growing merchant base, Paymob is set to drive further innovation and growth in the region.
