MoneyHash Secures $4.5 Million Funding to Enhance Payment Orchestration Services for Middle East and North Africa Merchants
The payment landscape in the Middle East and Africa (MEA) region is marked by significant fragmentation, with numerous payment providers and methods in each country, evolving regulations, and diverse customer preferences. This complexity is further compounded by challenges such as payment fraud, low checkout conversion rates, and high transaction failure rates.
COVID-19 Pandemic Accelerates Digital Payments Adoption
Although the COVID-19 pandemic accelerated the adoption of digital payments in the region, infrastructure development remains inadequate. Payment failure rates are three times higher in the MEA region than the global average, and fraud rates and cart abandonment exceed those of other regions by more than 20%. This presents a challenge for merchants, who often perceive payments as a cost and risk center rather than a strategic enabler.
Payment Orchestration: A Solution to the Challenges
Payment orchestration is an emerging trend that enables businesses to manage multiple payment providers and methods through a single platform. By leveraging payment orchestration, businesses can improve their payment processing efficiency, reduce costs, and enhance customer experience.
Case Study: MoneyHash
MoneyHash is a leading payment orchestration platform in the MEA region. The company has developed a robust platform that enables businesses to manage multiple payment providers and methods, including Checkout, Stripe, Ayden, Amazon Pay, Tap, and ValU. MoneyHash boasts 50 active paying customers and has tripled its revenue and increased its processing volume by 3,000% in the past year.
Investment and Growth
MoneyHash recently secured a seed round co-led by COTU Ventures and Sukna Ventures, with participation from RZM Investment, Dubai Future District Fund, VentureFriends, Tom Preston-Werner (GitHub’s founder and early Stripe investor), and a group of strategic investors and operators. The investment will be used to further develop the company’s platform and expand its presence in the MEA region.
Opportunities and Challenges
The payment landscape in the MEA region presents both opportunities and challenges for businesses. On one hand, the growing demand for digital payments and increasing adoption of payment orchestration platforms create a significant market opportunity. On the other hand, the high payment failure rates and fraud risks present a challenge that businesses need to address.
Conclusion
The payment landscape in the MEA region is complex and challenging. However, with the emergence of payment orchestration as a solution, businesses can improve their payment processing efficiency, reduce costs, and enhance customer experience. MoneyHash is a leading player in this space, and its success demonstrates the potential for growth and profitability in the market.
Recommendations
Based on the analysis, we recommend that businesses in the MEA region consider leveraging payment orchestration platforms to improve their payment processing efficiency and reduce costs. Additionally, investors should consider investing in companies that are developing innovative solutions to address the challenges in the payment landscape.
Future Outlook
The payment landscape in the MEA region is expected to continue growing, driven by increasing demand for digital payments and adoption of payment orchestration platforms. Businesses that can successfully navigate the complexities of the market will be well-positioned for growth and profitability.
