GSMA data shows 71% adoption in MEA's Gulf states and 70% mobile subscriber penetration in Latin America, driving digital payment infrastructure.

70% Smartphone Adoption Milestones in Two Key Emerging Regions

Smartphone adoption in the Middle East and Africa's Gulf states reached 71% in 2023, while Latin America's unique mobile subscriber penetration hit 70% in 2024—crossing the threshold widely viewed as a tipping point for mass-market digital payment adoption. According to the GSMA's Mobile Economy Middle East and North Africa 2024 report, smartphone adoption in the "Other Arab states" grouping—which includes Gulf Cooperation Council countries such as Saudi Arabia, the UAE, Qatar, Kuwait, Oman, and Bahrain—stood at 71% as of 2023 and is forecast to reach 77% by 2030. Across the broader MENA region, 327 million people subscribed to mobile internet services by end-2023, representing 49% of the population.

The GSMA's Mobile Economy Latin America 2025 report confirms that unique mobile subscriber penetration in the region reached 70% in 2024, providing the foundation for 550 million unique mobile subscribers across the continent. The mobile ecosystem contributed $550 billion to Latin American GDP in 2024, equivalent to 8.2% of the region's economic output.

Sub-regional data reveals significant variance within MEA. The GSMA report shows smartphone adoption in Iran at 58% in 2023, Israel at 68%, and Turkey at 73%—the latter already above the 70% mark. The Levant sub-region, encompassing countries including Jordan, Lebanon, and the Palestinian territories, recorded 50% smartphone adoption in 2023, underscoring the uneven pace of digital transformation across the broader region.

Global smartphone shipments grew 6.4% in 2024 despite macroeconomic headwinds, according to IDC data. Xiaomi and Transsion were standout performers in emerging markets. Xiaomi consolidated its recovery in Europe and Latin America through its Redmi Note and Poco series, while Transsion expanded rapidly across North and East Africa with a strong distribution network and a competitive portfolio in the sub-$200 segment. IDC further notes that vivo regained share in several emerging markets, supported by refreshed midrange devices.

Adoption Rate (%)Source: Orionmano Industries

Drivers: 5G Rollout and Affordable Device Portfolios

Two structural drivers underpin the penetration surge: the expansion of 5G networks and the availability of affordable, feature-rich smartphones across price tiers.

In Latin America, more than 30 operators in 13 countries have launched commercial 5G services, with a further 18 operators announcing deployment plans, according to the GSMA. 5G adoption is projected to reach 53% of mobile connections by 2030. This network infrastructure buildout makes high-speed mobile data accessible to a broader population, directly enabling data-intensive applications such as digital payments, video-based commerce, and real-time cross-border remittances.

Saudi Arabia has been a particularly aggressive early adopter. According to MarketDataForecast, the kingdom led the MEA smartphone market with a 29.5% share in 2024, driven by the Vision 2030 digital transformation agenda and the government's Smart Cities program, which has accelerated 5G adoption. E-government services such as Absher and Tawakkalna have institutionalized smartphone dependency among the population, creating daily habits around digital transactions. Smartphone subscriptions in Saudi Arabia surpassed the country's population in 2023 due to multiple SIM ownership, the Ministry of Communications and Information Technology reported.

On the device side, mid-range smartphones now dominate emerging markets. Grand View Research reports that the mid-range segment accounted for the largest revenue share globally in 2025, fueled by consumers seeking near-premium features—AMOLED displays, fast charging, 5G connectivity, and multi-lens AI-powered cameras—within accessible price bands. Transsion's sub-$200 portfolio has been a critical driver of first-time smartphone adoption across North and East Africa, while Xiaomi's Redmi Note and Poco series have been instrumental in Latin America and Europe recovery markets, per IDC. Xiaomi deepened its regional commitment in 2023 by launching a dedicated Middle East R&D center in Dubai Internet City, optimizing its MIUI interface for Arabic users and expanding offline retail partnerships with chains including Jazeel and Emax.

Enabling Digital Cross-Border Payment Infrastructure

High smartphone penetration directly expands the addressable user base for mobile-based cross-border payment platforms, which depend on smartphone access for app installation, biometric authentication, and real-time transaction processing.

In MENA, 327 million mobile internet users at end-2023—49% of the population—provide a critical mass for payment application adoption. In Gulf states where smartphone adoption already exceeds 71%, government-mandated digital services such as Absher and Tawakkalna have created habitual use of smartphone-based transactions for payments, identity verification, and service access, reducing the friction for private-sector payment platforms.

In Latin America, the 70% mobile subscriber penetration rate supports the rapid expansion of fintech platforms such as Mercado Pago and Nubank, both of which rely on smartphone-based account management, QR code payments, and mobile-first user experiences. The region's 5G rollout—projected to reach 53% of connections by 2030—will further reduce latency and improve the reliability of mobile payment interfaces, a critical factor for cross-border remittance corridors linking Latin America with the United States and Europe.

The connection between device penetration and payment infrastructure is most evident in the sub-$200 smartphone segment. Each new user who acquires an affordable smartphone—whether a Transsion device in Nigeria or a Xiaomi handset in Brazil—represents a potential new entrant into the digital payment ecosystem. IDC's data on Transsion's rapid expansion across North and East Africa and Xiaomi's recovery in Latin America directly maps to expanding addressable user bases for mobile payment platforms operating in those corridors.

With 5G coverage expanding and affordable smartphones continuing to flood both regions, industry forecasts point to penetration rates exceeding 75% by 2027. This trajectory will further embed digital cross-border payments into daily commerce across Middle East, Africa, and Latin America.