Saudi Arabia Payments Market Size (2024 - 2029)

The Saudi Arabia payments market is poised for significant growth, driven by the increasing penetration of smartphones and internet users, which are essential in facilitating digital transactions. The market's expansion is further supported by the country's transition towards a cashless society, with advanced payment methods catering to consumer needs. The Covid-19 pandemic has accelerated changes in payment practices, leading to a reduction in cash transactions and a shift towards online and quick settlement methods, creating new opportunities for payment providers in the region.

Market Size of Saudi Arabia Payments Industry

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Saudi Arabia Payments Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 163.93 Billion
Market Size (2029) USD 269.91 Billion
CAGR (2024 - 2029) 10.49 %
Market Concentration Medium

Major Players

Saudi Arabia Payments Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Saudi Arabia Payments Market Analysis

The Saudi Arabia Payments Market size is estimated at USD 163.93 billion in 2024, and is expected to reach USD 269.91 billion by 2029, growing at a CAGR of 10.49% during the forecast period (2024-2029).

The Saudi Arabian payments market is one of the most advanced markets, with payment methods that meet customers' needs and help the country’s drive toward a cashless society. According to the Cebr, the theoretical impact of real-time payments on formal GDP might increase by 2.8% by 2026. However, these are hypothetical advantages; they do not rule out the possibility of non-instant electronic or paper-based payments in the future.

  • With the rapid increase in the global economy, mobile phones (especially smartphones) have become an essential part of an individual. Moreover, the internet has also become a necessary part of day-to-day life for most people worldwide. Due to this, the penetration of smartphones and internet users increased worldwide, resulting in a significant boost in the payments market.
  • The increasing number of internet smartphone users is driving the Saudi Arabian payments market. Saudi Arabia is seeing an increase in smartphone usage and significant growth in smartphone penetration. With 24.2 million smartphone users, it ranks third globally, with over three-quarters of the population using smartphones.
  • Increasing internet penetration and a burgeoning e-commerce sector propel Saudi Arabia's payments market. The country witnessed a significant surge in electronic payment adoption, credited to a unified strategy embraced by its financial sector. This shift is bolstered by an efficient and evolving e-payment system, which boosts transaction efficiency and bolsters financial stability.
  • Market vendors are actively expanding the national payments infrastructure and refining payment services to encourage digital transactions. Furthermore, they are collaborating with partners to streamline economic activities and foster a more robust financial ecosystem. The continuous development and enhancement of these systems are crucial for maintaining the momentum in the payment market, ensuring that both consumers and businesses benefit from the advancements in digital payment technologies.
  • The COVID-19 pandemic supported a significant shift in payment practice, such as a decrease in cash payments, a move from in-store to online payment methods, and the adoption of quick settlements. These shifts offered new opportunities for Saudi Arabia's payment providers.

Saudi Arabia 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 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).

The Saudi Arabian payments market is segmented by mode of payment (point of sale (card payments, digital wallet, cash, and others), online sale (card payments, digital wallet, and others)), and end-user industry (retail, entertainment, healthcare, hospitality, and other end-user industries). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Mode of Payment
Point of Sale
Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
Digital Wallet (includes Mobile Wallets)
Cash
Others
Online Sale
Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
Digital Wallet (includes Mobile Wallets)
Others (includes Cash on Delivery, Bank Transfer, and Buy Now, Pay Later)
By End-user Industry
Retail
Entertainment
Healthcare
Hospitality
Other End-user Industries
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Saudi Arabia Payments Market Size Summary

The Saudi Arabia payments market is poised for significant growth, driven by the increasing adoption of digital payment methods and the country's push towards a cashless society. The market is characterized by advanced payment solutions that cater to the evolving needs of consumers, supported by the widespread use of smartphones and the internet. The rise in e-commerce and the shift in consumer behavior towards online transactions, accelerated by the COVID-19 pandemic, have further bolstered the demand for mobile and electronic payment solutions. Strategic partnerships and technological advancements, such as those by MoneyGram and PayPal, are enhancing the market's infrastructure and expanding its capabilities, enabling seamless international transactions and integrating social media with e-commerce.

The retail sector in Saudi Arabia plays a crucial role in the payments market, with electronic payments accounting for a significant portion of retail transactions. The government's initiatives, such as the Financial Sector Development Program under Saudi Vision 2030, are fostering a conducive environment for digital payment growth. The increasing adoption of digital wallets and contactless payment solutions presents lucrative opportunities for payment providers. The market is moderately competitive, with key players like PayPal, Moyasar, and Alipay actively expanding their presence. Regulatory support and strategic alliances, such as those between Mastercard and Geidea, are further strengthening the market, paving the way for innovative payment solutions and enhanced consumer experiences.

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Saudi Arabia Payments Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Stakeholder Analysis

    3. 1.3 Industry Attractiveness-Porter's Five Forces Analysis

      1. 1.3.1 Bargaining Power of Suppliers

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

    4. 1.4 Evolution of the payments landscape in the country

    5. 1.5 Key market trends pertaining to the growth of cashless transaction in the country

    6. 1.6 Impact of COVID-19 on the payments market in the country

  2. 2. Market Segmentation

    1. 2.1 By Mode of Payment

      1. 2.1.1 Point of Sale

        1. 2.1.1.1 Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)

        2. 2.1.1.2 Digital Wallet (includes Mobile Wallets)

        3. 2.1.1.3 Cash

        4. 2.1.1.4 Others

      2. 2.1.2 Online Sale

        1. 2.1.2.1 Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)

        2. 2.1.2.2 Digital Wallet (includes Mobile Wallets)

        3. 2.1.2.3 Others (includes Cash on Delivery, Bank Transfer, and Buy Now, Pay Later)

    2. 2.2 By End-user Industry

      1. 2.2.1 Retail

      2. 2.2.2 Entertainment

      3. 2.2.3 Healthcare

      4. 2.2.4 Hospitality

      5. 2.2.5 Other End-user Industries

Saudi Arabia Payments Market Size FAQs

The Saudi Arabia Payments Market size is expected to reach USD 163.93 billion in 2024 and grow at a CAGR of 10.49% to reach USD 269.91 billion by 2029.

In 2024, the Saudi Arabia Payments Market size is expected to reach USD 163.93 billion.

Saudi Arabia Payments Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)