Saudi Arabia Credit Card Transactions Market Overview, 2029

Saudi Arabia Credit Card Transactions Market Overview, 2029

Several cultural, economic, and governmental factors have contributed to a significant movement in Saudi Arabia toward digital payment systems and financial services. The country's young demographic, which is characterised by a high level of technological literacy, is enthusiastic about digital payment systems. This growing young population is a major driving force behind the increased use of contactless payments and digital wallets. Furthermore, measures described in Vision 2030, the country's strategic framework for economic and social reform, emphasise the transition to a cashless society. Government incentives to encourage electronic transactions accelerate this transformation, which aligns with the larger goal of financial modernization. Saudi Arabia has emerged as a leader in digital payments adoption in the Gulf Cooperation Council (GCC), surpassing some of its peers but still trailing the United Arab Emirates (UAE). While both Saudi Arabia and the UAE have made tremendous progress in adopting digital payment methods, the UAE has achieved a higher level of adoption and integration than Saudi Arabia. The UAE's excellent infrastructure, robust regulatory framework, and proactive activities targeted at encouraging digital payments all contribute to its leadership position. Saudi Arabia, on the other hand, has struggled with slower regulatory reforms and a less developed digital environment, impeding its advancement in this area.

According to the research report “Saudi Arabia Credit Card Transaction Market Research Report, 2029,"" published by Actual Market Research, the Saudi Arabia Credit Card Transaction market was valued more than USD 23 Billion in 2023. Expanding internet connectivity, which allows for easier access to digital banking services and platforms, is one of the key forces driving the trend toward digital payments. Furthermore, rising disposable incomes among Saudi people encourage increased consumer expenditure and the adoption of cashless transactions. Government-led efforts to promote financial inclusion also play an important role in increasing access to digital financial services, particularly among marginalised populations. However, along with these drives, there are significant problems that must be addressed. Security concerns about fraud and cyber threats constitute substantial barriers to the widespread implementation of digital payment systems. Addressing these problems requires strong cybersecurity measures as well as consumer education campaigns to increase financial literacy and awareness. Despite progress in promoting digital payments, there are still portions of the public who lack financial literacy, emphasising the significance of targeted training programs to promote inclusivity and knowledge of digital financial tools.

In terms of policy and regulation, the Saudi Monetary Authority (SAMA) oversees the financial sector. SAMA's regulatory structure prioritises secure transactions, with laws such as PCI DSS compliance requiring strict security standards for card issuers and processors. By enforcing these standards, SAMA hopes to protect customers' financial interests while also fostering trust and confidence in digital payment systems. The rise of the e-commerce sector creates a significant opportunity for credit card transactions, which are driven by the ease and security they provide. Credit card usage is anticipated to expand even more as online shopping becomes more popular, creating an opportunity for financial institutions to profit on digital payment trends. Furthermore, initiatives such as mega-projects under Vision 2030 in Saudi Arabia are expected to increase the acceptance of digital payments, fostering the spread of credit card transactions. As the country moves closer to its economic goals, the reliance on traditional payment methods increasingly fades, creating way for more efficient and simplified digital payment options.

In 2021, electronic payments accounted for almost 57% of retail purchases. This figure demonstrates the growing desire for cashless transactions among customers. Projections show a strong market trajectory, this growth track demonstrates the credit card market's resilience and potential, indicating long-term demand and chances for expansion. Pricing and segmentation in the credit card market change depending on the card type and the services of the various banks. Classic, rewards, and premium cards cater to a variety of consumer preferences. Such segmentation enables financial institutions to tailor their offers to various market niches, meeting the diverse demands and preferences of clients. In terms of competitiveness, established firms dominate the credit card market. However, the scene is changing as more fintech businesses emerge, offering innovative payment alternatives. These newcomers contribute new viewpoints and technology to the sector, challenging traditional incumbents and driving innovation. Furthermore, recent industry developments, such as initiatives by the Saudi Monetary Authority (SAMA) to promote digital wallets and contactless payments, as well as collaborations between banks and merchants to introduce co-branded cards with targeted rewards, point to a dynamic and evolving credit card market in Saudi Arabia.
Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Credit Card Transactions market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Card Type
• General Purpose
• Specialty & Other Credit Cards

By Provider
• Visa
• Master-card
• Others

By Application
• Food & Groceries
• Health & Pharmacy
• Consumer Electronics
• Other Application

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Credit Card Transactions industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Credit Card Transactions market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Card Type
• General Purpose
• Specialty & Other Credit Cards

By Provider
• Visa
• Master-card
• Others

By Application
• Food & Groceries
• Health & Pharmacy
• Consumer Electronics
• Other Application

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Credit Card Transactions industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.