Saudi Arabia Digital Payment Market Overview, 2029

Saudi Arabia Digital Payment Market Overview, 2029

The digital payments market in Saudi Arabia boasts a rich and recent history. Traditional cash transactions dominated for a long time, but a significant shift began around a decade ago. The government's ambitious Vision 2030, emphasizing a diversified and digital-driven economy, played a crucial role. This vision spurred initiatives like the Financial Sector Development Program (FSDP) with a target of increasing electronic payments. Culturally, Saudi Arabia is witnessing a growing young population comfortable with technology and embracing online shopping. This, coupled with a rising smartphone penetration rate, has fueled the adoption of digital wallets and contactless payments. Additionally, the convenience and security offered by digital transactions are changing consumer preferences.

According to the research report ""Saudi Arabia Digital payment Market Research Report, 2029,"" published by Actual Market Research, the Saudi Arabia Digital payment market is projected to reach market size of more than USD 2 billion by 2029. Several key drivers are propelling this market forward. The government's continued push for a cashless society through regulations and infrastructure development is a major factor. The increasing number of fintech startups offering innovative payment solutions further broadens the options for consumers and merchants. Moreover, the booming e-commerce sector heavily relies on digital payments, creating a symbiotic relationship. However, challenges still exist. While internet and smartphone penetration are high, there's a segment of the population, particularly in rural areas, less comfortable with digital tools. Security concerns around data privacy and fraud can also deter some users. Additionally, integrating digital payment systems into traditional businesses can be slow due to infrastructure limitations and a need for behavioural change.

One key segmentation is by offerings. This looks at the solutions and services provided by digital payment players. Solutions encompass platforms for merchants to integrate digital payments, while services include fraud management, tokenization, and loyalty programs. Understanding these segments helps identify gaps and tailor offerings to specific market needs.
Another crucial segmentation is by transaction type. Here, we differentiate between domestic transactions happening within Saudi Arabia and cross-border transactions involving international payments. This segmentation is important for companies like MoneyGram, which partnered with a Saudi digital wallet to facilitate international money transfers. Knowing the volume and growth potential of each segment helps businesses prioritize their resources.

Diving deeper, we segment by payment mode. This includes established methods like cards (debit and credit), ACH transfers directly between bank accounts, and digital wallets like Apple Pay or STC Pay. Additionally, we consider emerging payment modes like contactless payments via NFC technology, biometric authentication for secure transactions, and even traditional bank transfers facilitated digitally. Analyzing these segments helps identify the dominant players, assess the adoption rate of new technologies, and predict future trends.

Finally, we segment the market by the vertical or end-user industry. This includes segments like BFSI (banking, financial services, and insurance), healthcare, IT & Telecom, media & entertainment, retail & e-commerce, transportation, and others. This segmentation helps us understand how different industries utilize digital payments and allows tailoring solutions to their specific needs. For instance, the healthcare sector might prioritize secure and fast transactions, while the retail industry might focus on integration with loyalty programs.

The growth of the digital payment market in Saudi Arabia is significantly influenced by the policies and regulations established by the Saudi Arabian Monetary Agency (SAMA). SAMA takes a proactive approach in ensuring the security, efficiency, and transparency of digital transactions within the country. Key areas of focus include promoting financial inclusion by encouraging wider access to digital financial services, particularly targeting unbanked or underbanked segments of the population. Moreover, SAMA places a strong emphasis on consumer protection, mandating stringent measures for data security and privacy to foster trust among consumers. The regulatory framework also prioritizes fostering innovation and competition in the market, welcoming the entry of new players, especially fintech startups, through supportive regulatory environments like sandbox testing. This approach not only encourages the development of more efficient digital payment solutions but also maintains a balance between consumer protection and fostering innovation. Additionally, SAMA ensures compliance with international standards for digital payments, facilitating interoperability between different payment systems and promoting Saudi Arabia's integration into the global financial landscape.

The future of digital payments in Saudi Arabia appears bright. With government initiatives, rising internet and smartphone usage, and a growing tech-savvy population, the market is poised for significant growth in the coming years.
Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Digital Payment 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 Offering
• Solutions
• Services

By Transaction type
• Domestic
• Cross Border

By Payment Type
• Cards
• ACH Transfer
• Digital Wallet
• Other Payment Modes

By Vertical
• BFSI
• Healthcare
• IT & Telecom
• Media & Entertainment
• Retail & E-commerce
• Transportation
• Others

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 Digital Payment 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
• Digital Payment 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 Offering
• Solutions
• Services

By Transaction type
• Domestic
• Cross Border

By Payment Type
• Cards
• ACH Transfer
• Digital Wallet
• Other Payment Modes

By Vertical
• BFSI
• Healthcare
• IT & Telecom
• Media & Entertainment
• Retail & E-commerce
• Transportation
• Others

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 Digital Payment 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.