MEA BaaS Market Size
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 65.51 Billion |
| Market Size (2029) | USD 100.53 Billion |
| CAGR (2024 - 2029) | 7.40 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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MEA BaaS Market Analysis
The Middle-East And Africa Banking-As-A-Service Market size is estimated at USD 65.51 billion in 2024, and is expected to reach USD 100.53 billion by 2029, growing at a CAGR of 7.40% during the forecast period (2024-2029).
The Middle East and Africa region is home to around 460 million people. Approximately half the population is under the age of 26. With such a large and young population, the Middle East and Africa Banking-as-a-Service (BaaS) Market is expanding its reach among early technology adopters. The number of fintech firms in the Middle East region is observing a continuous increase over the years rising to more than 460 companies last year expanding the BAAS market size in the region. Qatar National Bank, First Abu Dhabi Bank, Emirates NBD Bank, Standard Bank Group, and Saudi National Bank are among some of the National banks in the Middle East expanding their BaaS services in collaboration with fintech companies in the region.
BaaS has emerged as a service to extend the reach of financial and banking into new geographic markets and it exists as a faster way to bring financial products to market. UAE, Israel, and Saudi Arabia are among the countries in the region with online banking penetration of more than 40% and are observing a continuous expansion of digital financial products and transactions. Payments and exchange companies and the insurance industry (online borrowings, RegTech, online banking, fundraising, blockchain, and cryptocurrency firms) are observing a continuous expansion in the region with the launch of various fintech service products. More than 80% of FinTech enterprises in the Middle East are involved in payments, transfers, and remittance services. Over the period Fawry, Madfooat.com, Optasia, MNT-Halan, Tabby, and Pay Tabs have emerged as the leading fintech providers in the region with a large segment of the customer base existing in the major cities of Damascus, Riyadh, Istanbul, and Turkey, Iraq, Iran and other in the Middle East and Africa region.
MEA BaaS Market Trends
Rising Volume of Transaction in the Region
With a rise in the number of financial services products and applications volume of digital transactions in banking services is observing a continuous increase. UAE Bahrain, Kuwait, and Saudi Arabia are among the countries in the region with the largest share of adults having bank account owners. As the financial markets of banking, stock exchange, insurance, credit/loans, and Mutual funds are expanding in the region they are leading to a rise in the number of financial transactions being made digitally increasing the adoption of BaaS by fintech and financial service providers. Saudi Arabia, UAE, and Egypt have emerged as countries in the region with the largest annual growth in the transaction volume of mobile payments. With a continuous rise in Internet usage penetration in the countries, more businesses and customers are adopting banking apps for financial transactions resulting in an expansion of BaaS services by the financial services providers.
Increase In Digital Banking
Israel, UAE, Turkey, Saudi Arabia, and Bahrain have emerged as the countries in the Middle East and Africa region with the largest number of digital banking services. The region exists with a share of more than 40% of the global fintech companies and with a continuous increase in their partnership with existing banks in the region digital banking service in the region is observing a continuous increase. With a large segment of the population in the region not having access to banking services, digital banking has emerged as a solution in the region to increase the financial inclusion of the population with banking services. Abu Dhabi Global Market (ADGM), Bahrain FinTech Bay, Fintech Saudi, and FinTech Hive at the Dubai International Financial Centre (DIFC) have emerged as the leading digital payment provider hubs in the Middle East expanding the financial service. Saudi Arabia, Bahrain, Egypt, and UAE have emerged as countries observing a continuous rise in digital payment investment raising demand for BaaS platforms.
MEA BaaS Industry Overview
The Middle East and Africa "Banking-As-A-Service" market exists in a fragmented form with an increase in the number of fintech and other financial services companies offering a wide range of financial products in the market. The rapidly changing demand for enhanced banking products and digitization from diverse organizations is prompting key companies to rely on third parties and build new API services. Some of the existing players in the market are Sarwa Co, Beehive, Solaris Bank, Now Money, and Treezor.
MEA BaaS Market Leaders
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Sarwa Co
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Solaris Bank
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Now Money
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Treezor
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Beehive Federal Credit Union
*Disclaimer: Major Players sorted in no particular order
MEA BaaS Market News
- In March 2022. Aazzur partnered with Treezor which exists as a European firm in Banking-as-a-Service (BaaS). The partnership will increase Aazzur's client base and develop its BaaS offering in the region by supplying its payment infrastructure for account and card management, while Aazur will provide front-end layers, integration, and value-added products for front-end and wealth services.
- In September 2022, Wio Bank launched its "platform bank" in the UAE, with its offering of apps, embedded finance, and BaaS. The launch of the platform bank is in line with the aim of UAE’s digital economy strategy to double the contribution of the digital economy to the country’s GDP.
MEA BaaS Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Rise in Digital Banking the Region
- 4.2.2 Rise in Volume of Financial Transaction in the Region
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4.3 Market Restraints
- 4.3.1 Higher Cost of BaaS Technology for Some Banking Entities.
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4.4 Market Opportunities
- 4.4.1 Rise In Government Initiatives Towards Digitizing Economy
- 4.4.2 Rise In Customized Financial Services Products By Businesses
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4.5 Industry Attractiveness - Porters' Five Forces Analysis
- 4.5.1 Threat of New Entrants
- 4.5.2 Bargaining Power of Buyers
- 4.5.3 Bargaining Power of Suppliers
- 4.5.4 Threat of Substitutes
- 4.5.5 Intensity of Competitive Rivalry
- 4.6 Technological Innovations in the Middle East and Africa Banking-As-A-Service Market
- 4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 By Type
- 5.1.1 API-based BaaS
- 5.1.2 Cloud based baaS
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5.2 By Service Type
- 5.2.1 Payment Process Services
- 5.2.2 Digital Banking Services
- 5.2.3 KYC Services
- 5.2.4 Customer Support Services
- 5.2.5 Others
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5.3 By Enterprises Size
- 5.3.1 Large Enterprises
- 5.3.2 Small & Medium Enterprises
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5.4 By Country
- 5.4.1 South Africa
- 5.4.2 GCC
- 5.4.3 Egypt
- 5.4.4 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Market Competition Overview
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6.2 Company Profiles
- 6.2.1 Sarwa Co
- 6.2.2 Beehive Federal Credit Union
- 6.2.3 Solaris Bank
- 6.2.4 NOW Money
- 6.2.5 Treezor
- 6.2.6 Telr
- 6.2.7 Mamo Pay
- 6.2.8 Felix
- 6.2.9 Jingle Pay
- 6.2.10 Al Baraka Bank*
- *List Not Exhaustive
7. MARKET FUTURE TREND
8. DISCLAIMER AND ABOUT US
** Subject To AvailablityMEA BaaS Industry Segmentation
The banking as-a-services (BaaS) market is an end-to-end model that enables digital banks and other third parties to connect directly with bank systems via API, allowing them to build banking offerings on top of the providers' regulated infrastructure while also unlocking the open banking opportunity, reshaping the global financial services landscape.
The baking-as-a-service market is segmented by type, by service type, by enterprise size, and by region. By type, the market is segmented into api-based baas and cloud-based baas. By service type, the market is segmented into payment process services, digital banking services, KYC services, customer support services, and others. By enterprise size, the market is segmented into small, and large enterprises. By region, the market is segmented into South Africa, GCC, Egypt, the rest of the Middle and Africa. The report offers market size and forecasts for the Middle East and Africa banking as-a-services market in value (USD) for all the above segments.
| By Type | API-based BaaS |
| Cloud based baaS | |
| By Service Type | Payment Process Services |
| Digital Banking Services | |
| KYC Services | |
| Customer Support Services | |
| Others | |
| By Enterprises Size | Large Enterprises |
| Small & Medium Enterprises | |
| By Country | South Africa |
| GCC | |
| Egypt | |
| Rest of Middle-East and Africa |
MEA BaaS Market Research FAQs
How big is the Middle-East And Africa Banking-As-A-Service Market?
The Middle-East And Africa Banking-As-A-Service Market size is expected to reach USD 65.51 billion in 2024 and grow at a CAGR of 7.40% to reach USD 100.53 billion by 2029.
What is the current Middle-East And Africa Banking-As-A-Service Market size?
In 2024, the Middle-East And Africa Banking-As-A-Service Market size is expected to reach USD 65.51 billion.
Who are the key players in Middle-East And Africa Banking-As-A-Service Market?
Sarwa Co, Solaris Bank, Now Money, Treezor and Beehive Federal Credit Union are the major companies operating in the Middle-East And Africa Banking-As-A-Service Market.
What years does this Middle-East And Africa Banking-As-A-Service Market cover, and what was the market size in 2023?
In 2023, the Middle-East And Africa Banking-As-A-Service Market size was estimated at USD 60.66 billion. The report covers the Middle-East And Africa Banking-As-A-Service Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Middle-East And Africa Banking-As-A-Service Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
MEA Banking-as-a-Service Industry Report
Statistics for the 2024 Middle-East And Africa Banking-As-A-Service market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Middle-East And Africa Banking-As-A-Service analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
