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Saudi Arabia Mobile Payments Market Size (2024 - 2029)

The Saudi Arabian mobile payments market is experiencing significant growth, driven by high internet and smartphone penetration, technological advancements, and the increasing adoption of e-commerce. The financial services sector is undergoing a transformation, with initiatives like the Mada Pay mobile wallet enhancing digital payment options. The Saudi Vision 2030 program aims to substantially increase the proportion of digital payments, further boosting the market. Despite challenges such as regulatory hurdles and data security concerns, the shift from cash to digital payments has accelerated, particularly due to the impacts of COVID-19.

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Market Size of Saudi Arabia Mobile Payments Industry

Saudi Arabia Mobile Payments Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 11.49 %
Market Concentration Medium

Major Players

Saudi Arabia Mobile Payments Market Major Players

*Disclaimer: Major Players sorted in no particular order

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.

By Type (Market Share in Percentage, Based on Relative Adoption)
Proximity
Remote
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Saudi Arabia Mobile Payments Market Size Summary

The Saudi Arabian mobile payments market is experiencing significant growth, driven by high internet and smartphone penetration, technological advancements, and the increasing adoption of e-commerce. The shift from cash to digital payments is being propelled by initiatives such as the Saudi Vision 2030 program, which aims to increase the share of digital payments in the economy. The introduction of platforms like Mada Pay, the kingdom's first multi-issuer mobile wallet, highlights the government's commitment to enhancing the digital payment infrastructure. Despite challenges such as data security and regulatory hurdles, the market is poised for expansion, supported by a robust digital ecosystem and high-speed internet connectivity.

The market landscape is moderately consolidated, with key players like SCT Pay, Mada Pay, and Bayan Pay leading the charge. These companies are actively engaging in strategic partnerships and technological innovations to strengthen their market presence. The COVID-19 pandemic accelerated the shift towards digital payments, with government measures such as banning cash on delivery and promoting POS devices for offline retailers further driving this trend. The rise of fintech startups and the expansion of 5G services are expected to further boost the adoption of mobile payments, making them a cornerstone of the financial ecosystem in Saudi Arabia.

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Saudi Arabia Mobile Payments Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Increasing internet and smartphone penetration

      2. 1.1.2 Growing E-commerce and Online Shopping Trends

      3. 1.1.3 Advancements in Technology

    2. 1.2 Market Challenges

      1. 1.2.1 Security Issues Associated with Mobile Payments

    3. 1.3 Key Regulations and Standards in the Mobile Payments Industry

    4. 1.4 Analysis of Business Models in the Industry

    5. 1.5 Analysis of the Increasing Market Penetration of Mobile Wallets

    6. 1.6 Analysis on Enabling Technologies (Coverage to Include NFC, QR, etc.)

    7. 1.7 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

Saudi Arabia Mobile Payments Market Size FAQs

The Saudi Arabia Mobile Payments Market is projected to register a CAGR of 11.49% during the forecast period (2024-2029)

SCT Pay (Saudi Digital Payment Company), BayanPay (Bayan Payments Ltd.), Mada Pay (Mada), Alinma Pay (Alinma Bank)) and Apple Pay (Apple Inc.) are the major companies operating in the Saudi Arabia Mobile Payments Market.

Saudi Arabia Mobile Payments Market Report Snapshots

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