Saudi Arabia Payments Market Size (2024 - 2029)

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.