Market Size of Middle East and Africa Payments Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2019 - 2022 |
CAGR | 16.20 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
MEA Payments Market Analysis
Consumers in the Middle East and Africa are increasingly switching to contactless and electronic payments and continue to move away from cash use. The main reason for this change is the incredible speed at which payment technology is evolving in the Middle East and Africa. The market is expected to grow at a CAGR of 16.2% during forecast period (2022 - 2027).
- As the global economy has evolved fast, mobile phones (particularly smartphones) have become vital to each individual's life. Furthermore, the internet has become an integral part of most people's daily lives worldwide. As a result, the number of smartphone and internet users has increased dramatically worldwide, resulting in a significant expansion of the payments industry.
- In January 2022, Telkom, a South African wireline and wireless telecommunications provider, announced that Telkom Kenya had launched an app for its mobile money product, T-Kash. T-Kash App is an easy-to-use application that will enable its customers to access a wider service offering on its digital financial services platform.
- According to Worldpay, as of 2020, cash was the most prevalent payment option for POS transactions in the Middle East and Africa (MEA), accounting for 52.6% of all POS transactions. Credit and debit cards came in second and third, with 16.6% and 10.6% of the market share in the same year. Cash is expected to be the most popular payment method by 2024. Digital wallets, including mobile money, will see large growth in use, with a share of 8.3% in 2020 rising to 16.8% in 2024.
- The mobile payments market is expected to develop over the projected period, owing to the growing acceptance of the M-commerce sector, which involves online commercial transactions using wireless devices such as smartphones.
- Furthermore, M-commerce allows consumers to trade from anywhere as long as wireless internet is available. Google and Apple, for example, have already launched their mobile shopping systems. Customers may make in-store purchases quickly using digital wallets like Apple Pay and Google Pay instead of swiping their cards.
- Prepaid cards have considerably increased use as a cash substitute across Middle East and Africa. The rise in technology-driven products and services is driving the popularity of prepaid card payment options in this region. Furthermore, governments in the region are urging customers to utilize cashless payment methods such as digital and mobile wallets, boosting the use of prepaid cards in the region.
- The Covid-19 outbreak has resulted in a substantial shift in payment practice, including reducing cash payments, moving from in-store to online payment options, and adopting rapid settlements. These changes have opened up new possibilities for payment providers in Singapore.
MEA Payments Industry Segmentation
The payments market is segmented by two modes of payment - POS and e-commerce. E-commerce payments include online purchases of goods and services such as purchases made on e-commerce websites and online booking of travel and accommodation. However, it does not include online purchases of motor vehicles, real estate, utility bill payments (such as water, heating, and electricity), mortgage payments, loans, credit card bills, or purchases of shares and bonds. As for POS, all transactions that occur at the physical point of sale are included in the market scope. It includes traditional in-store transactions and all face-to-face transactions regardless of where they take place. Cash is also considered for both cases (cash-on-delivery for e-commerce sales).
By Mode of Payment | ||||||
| ||||||
|
By End-user Industry | |
Retail | |
Entertainment | |
Healthcare | |
Hospitality | |
Other End-user Industries |
By Country | |
South Africa | |
United Arab Emirates | |
Saudi Arabia | |
Rest of MEA |
Middle East and Africa Payments Market Size Summary
The Middle East and Africa payment market is experiencing a significant transformation as consumers increasingly shift towards contactless and electronic payment methods, moving away from traditional cash transactions. This shift is driven by the rapid evolution of payment technologies and the growing integration of smartphones and the internet into daily life. The adoption of mobile payments and digital wallets is expanding, supported by initiatives like Telkom Kenya's T-Kash app and partnerships between banks and digital payment companies in the UAE. The COVID-19 pandemic has further accelerated this trend, prompting a move from in-store to online payments and encouraging the use of innovative payment solutions such as cryptocurrencies and biometric systems. The market is characterized by moderate competition, with companies striving to differentiate their offerings through continuous innovation.
The region's payment landscape is also witnessing the rise of prepaid cards and M-commerce, enabling consumers to make transactions from anywhere with internet access. Governments are promoting cashless payment methods, which is boosting the adoption of digital and mobile wallets. The market's growth is supported by investments in technology-driven products and services, as well as the increasing popularity of buy now, pay later (BNPL) services. Strategic partnerships and initiatives, such as those by OPay and Mastercard, are aimed at enhancing financial inclusion and expanding digital commerce. The Middle East and Africa payment market is poised for continued expansion, driven by evolving consumer behaviors, regulatory support, and technological advancements.
Middle East and Africa Payments Market Size - Table of Contents
-
1. MARKET INSIGHTS
-
1.1 Market Overview
-
1.2 Industry Stakeholder Analysis
-
1.3 Industry Attractiveness-Porter's Five Force Analysis
-
1.3.1 Bargaining Power of Suppliers
-
1.3.2 Bargaining Power of Buyers/Consumers
-
1.3.3 Threat of New Entrants
-
1.3.4 Threat of Substitute Products
-
1.3.5 Intensity of Competitive Rivalry
-
-
1.4 Evolution of the payments landscape in the region
-
1.5 Key market trends pertaining to the growth of cashless transaction in the region
-
1.6 Impact of COVID-19 on the payments market in the region
-
-
2. Market Segmentation
-
2.1 By Mode of Payment
-
2.1.1 Point of Sale
-
2.1.1.1 Card Payments (Includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
-
2.1.1.2 Digital Wallet (Includes Mobile Wallets)
-
2.1.1.3 Cash
-
2.1.1.4 Others
-
-
2.1.2 Online Sale
-
2.1.2.1 Card Payments (Includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
-
2.1.2.2 Digital Wallet (Includes Mobile Wallets)
-
2.1.2.3 Others (Includes Cash on Delivery, Bank Transfer, and Buy Now, Pay Later)
-
-
-
2.2 By End-user Industry
-
2.2.1 Retail
-
2.2.2 Entertainment
-
2.2.3 Healthcare
-
2.2.4 Hospitality
-
2.2.5 Other End-user Industries
-
-
2.3 By Country
-
2.3.1 South Africa
-
2.3.2 United Arab Emirates
-
2.3.3 Saudi Arabia
-
2.3.4 Rest of MEA
-
-
Middle East and Africa Payments Market Size FAQs
What is the current Middle East and Africa Payments Market size?
The Middle East and Africa Payments Market is projected to register a CAGR of 16.20% during the forecast period (2024-2029)
Who are the key players in Middle East and Africa Payments Market?
Interswitch Ltd, Jumia, Network International Holdings Plc, Opay and PalmPay Technology Co Ltd are the major companies operating in the Middle East and Africa Payments Market.