Saudi Arabia Mobile Payments Market Size (2024 - 2029)

Saudi Arabia Mobile Payments Market Analysis

The Saudi Arabian mobile payments market was valued at USD 120.96 billion last year and is expected to reach USD 229.75 billion in the next six years, registering a CAGR of 11.49% over the forecast period. The primary factor driving the growth of the Saudi Arabian payments market is high internet and smartphone penetration, advancement in technology enabling secure and fast payments, and rising adoption of e-commerce and online shopping, among others.

• The Saudi Arabian financial services industry is experiencing unprecedented levels of change, with people moving towards new and disruptive technology payment trends from cash. As a result, several projects are already underway to evolve the payments and financial ecosystem.
• For instance, the SAMA has taken many initiatives to encourage digital payments, including a new electronic payments system, "Mada pay," which was recently created. Mada Pay is the kingdom's first multi-issuer mobile wallet application that supports contactless (NFC) transactions to launch in Saudi Arabia.
• Further, as part of the Saudi Vision 2030 program, the kingdom aims to make digital payments makeup 70% of the total by 2025. this type of initiative is expected to boost mobile payments in the region over the forecast period. For instance, The SAMA announced that the share of electronic payments in retail had reached 62% of total transactions, including cash conducted in 2022, surpassing the 60% target set out by the Financial Sector Development Program, one of the main programs of Saudi Vision 2030.
• Moreover, Checkout.com's "Digital Transformation in MENA 2022" report shows that cash transactions in Saudi Arabia reduced from 27% in 2021 to 20% in 2022.
• Despite the rapid rise of mobile wallet fintech, the sector faces challenges. According to the Fintech Saudi Report, access to talent, the regulatory landscape, and the ability to test products and services are among the top three challenges. Further, challenges related to data security and increased fraud in online payments may hinder the growth of the mobile payments market in the region.
• COVID-19 triggered a widespread shift in adopting digital payment tools in Saudi Arabia. Restrictions on movement and the potential risks of handling cash led consumers to quickly shift from cash to digital payments, such as mobile payments, as a safer and more accessible option.

Saudi Arabia Mobile Payments Industry Segmentation

Mobile payment includes transactions through a portable electronic device such as a tablet or smartphone for a product or service. The study tracks mobile payment applications based on transaction type, i.e., proximity and remote payment.

The study tracks key market metrics, underlying growth influencers, and significant industry vendors, providing support for the Saudi Arabian mobile payments market estimates and growth rates throughout the anticipated period. The study also looks at the overall influence of COVID-19 on the Saudi Arabian mobile payment ecosystem. The market sizes and forecasts are provided in terms of value (USD) for all the above segments.