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Middle East and Africa Mobile Payments Market Size (2024 - 2029)

The Middle East and Africa mobile payments market is experiencing significant growth driven by increasing internet penetration and the expansion of e-commerce and m-commerce sectors. The shift towards cashless transactions, accelerated by the COVID-19 pandemic, has heightened the demand for mobile payment systems, as they facilitate electronic payments in the rapidly growing online retail space. The widespread adoption of smartphones further enhances the market's potential, offering opportunities for innovation in payment processing. As consumer habits evolve and the acceptance of mobile payment methods increases, the market is poised for substantial long-term expansion.

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Market Size of Middle East and Africa Mobile Payments

middle east and africa mobile payments market size
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 30.10 %
Market Concentration Medium

Major Players

middle east and africa mobile payments market trends

*Disclaimer: Major Players sorted in no particular order

Middle East and Africa Mobile Payments Market Analysis

The Middle East and Africa Mobile Payments is expected to register a CAGR of 30.1% over the forecast period (2022-2027). The increasing internet penetration and growing E-commerce & M-commerce market, along with gradual growth in the number of loyalty benefits in a mobile environment, are driving the development of the mobile payments market.

  • The rising growth in the e-commerce industry through online businesses such as online retail shopping, recharges, money transfer, and so on is giving rise to mobile payment systems.
  • The online world is growing rapidly owing to factors like the rising number of broadband connections and internet availability at cheaper rates. Most of the time, payments in e-commerce are cashless, which implies that they must be processed by electronic means. This has been raising the demand for mobile payments mechanism.
  • The rise of cashless transactions presents opportunities for businesses, both established and start-ups, as smartphones are now accounting for about 80% of all mobile devices, there will be considerable potential for innovation, including using mobile phones to direct payments.
  • The spread of the COVID-19 has encouraged the adoption of mobile, payments as shifts in consumer habits caused by the pandemic are expected to boost payments globally. Further, the acceptance of mobile payment methods is expected to improve post-COVID-19 and play a more substantial role in the long term. With cash being seen as a potential carrier for the virus, governments and regulatory bodies discourage its use.

Middle East and Africa Mobile Payments Industry Segmentation

Mobile payments refer to the different media of payments through software as a service in smart electronic devices, like smartphones. The payment can be made in real-time or remotely through the cloud setup.

The Middle East and Africa Mobile Payments Market is Segmented by Type (Proximity and Remote).

By Type (Market share in percentage based on relative adoption)
Proximity
Remote
By Country
Middle-East and Africa
United Arab Emirates
Saudi Arabia
Egypt
Nigeria
Kenya
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Middle East and Africa Mobile Payments Size Summary

The Middle East and Africa mobile payments market is experiencing significant growth, driven by increasing internet penetration and the expansion of e-commerce and m-commerce sectors. The shift towards cashless transactions is creating opportunities for both established businesses and startups, as smartphones become the primary devices for conducting payments. The COVID-19 pandemic has further accelerated the adoption of mobile payment methods, as consumers increasingly prefer contactless transactions to avoid potential virus transmission. This trend is expected to continue, with governments and regulatory bodies promoting digital payment solutions to reduce reliance on cash. The varying levels of internet and banking penetration across the region, particularly in countries like Qatar, Bahrain, and the UAE, contrast with lower rates in nations such as Yemen, Syria, and Iraq, but efforts to enhance connectivity are anticipated to bolster market growth.

In the Middle East, countries like Saudi Arabia are actively pursuing ambitious mobile payment targets as part of their Vision 2030 plan, with the Saudi Arabian Monetary Authority encouraging the development of electronic payment infrastructure. The region's high GDP per capita and robust internet penetration, especially in the UAE and Qatar, position it well for further e-commerce growth. Major players in the market, such as Hyperpay, Vodafone Cash, and CareemPay, are expanding their reach and enhancing their offerings through strategic partnerships and acquisitions. In Africa, countries like Nigeria and South Africa are witnessing a surge in mobile payment adoption, driven by the convenience of digital transactions. The market is moderately concentrated, with key players focusing on expanding their customer base and improving payment solutions across the region.

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Middle East and Africa Mobile Payments Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Increasing internet penetration and growing E-commerce & M-commerce market

      2. 1.1.2 Increasing number of loyalty benefits in mobile environment

    2. 1.2 Market Challenges

      1. 1.2.1 Security issues associated with mobile payments

    3. 1.3 Market Opportunities

      1. 1.3.1 Government Policies Encouraging the Growth of Digital Paymentis expected to aid the growth of Real Time Payment methods amongst commoners

    4. 1.4 Key Regulations and Standards in the Mobile Payments Industry

    5. 1.5 Analysis of Business Models in the Industry

    6. 1.6 Analysis of the Increasing Market Penetration of Mobile Wallets with a regional breakdown of key countries

    7. 1.7 Analysis on Enabling Technologies (Coverage to include NFC, QR, etc.)

    8. 1.8 Commentary on the growth of Mobile Commerce and its influence on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type (Market share in percentage based on relative adoption)

      1. 2.1.1 Proximity

      2. 2.1.2 Remote

    2. 2.2 By Country

      1. 2.2.1 Middle-East and Africa

        1. 2.2.1.1 United Arab Emirates

        2. 2.2.1.2 Saudi Arabia

        3. 2.2.1.3 Egypt

        4. 2.2.1.4 Nigeria

        5. 2.2.1.5 Kenya

Middle East and Africa Mobile Payments Market Size FAQs

The Middle East and Africa Mobile Payments Market is projected to register a CAGR of 30.10% during the forecast period (2024-2029)

Vodafone Egypt (Vodafone Cash), Orange S.A. (Orange Money), Fawry (MyFawry), Careem (CareemPay) and HyperPay INC are the major companies operating in the Middle East and Africa Mobile Payments Market.

Middle East and Africa Mobile Payments Services Market Report Snapshots

Middle East & Africa Mobile Payments Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)