Market Size of MENA Digital Payments Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 226.53 Billion |
Market Size (2029) | USD 380.86 Billion |
CAGR (2024 - 2029) | 10.95 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Middle East & North Africa Digital Payments Market Analysis
The MENA Digital Payments Market size is estimated at USD 226.53 billion in 2024, and is expected to reach USD 380.86 billion by 2029, growing at a CAGR of 10.95% during the forecast period (2024-2029).
The region's market growth is driven by the increasing prevalence of smartphones, social interactions, and enablement programs by necessary merchants to close the gap between the physical and digital worlds.
- The adoption of digital payments in MENA has been relatively slow compared to other regions worldwide. This is due to the population's inclination to use cash and the banking industry's gradual modernization. However, favorable conditions in the area can spur the take-up of digital payments and disrupt the traditional payment value chain.
- Moreover, the policymakers in both developed and developing MENA countries are getting involved in providing the necessary regulatory framework and infrastructure to support the growth of digital payments in the region. The central banks of Egypt, Bahrain, the United Arab Emirates, and Saudi Arabia have adopted specific initiatives to deregulate digital payment services.
- Further, mobile financial services' transformation has been witnessed in the region through payment methods, such as Careem Pay in the United Arab Emirates. A digital wallet app launched by Saudi Arabia's telecommunications company, STC Pay, allows people to send money to other users and digitally pay for restaurants and stores.
- Despite the rapid rise of digital payments, the sector faces challenges related to data security and increased fraud in online payments. A relative lack of digital literacy in crucial emerging countries may hinder the growth of the digital payments market in the region.
- The shift in consumer habits caused by the pandemic is expected to boost digital payments in the region. Further, the acceptance of digital payment methods is expected to improve post-COVID-19, and it will 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. These factors are influencing the growth of the market.