Qatar Payments Market- Growth, Trends, COVID-19 Impact and Forecasts (2022-2027)

The Qatar Payments Market is Segmented by Mode of Payment (Point of Sale (Card Payments, Digital Wallet, Cash), Online Sale (Card Payments, Digital Wallet)), and by End-user Industries (Retail, Entertainment, Healthcare, Hospitality).

Market Snapshot

Qatar Payments Market
Study Period: 2022-2027
Base Year: 2021
CAGR: 14.21 %

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Market Overview

The Qatar payments market is expected to register a CAGR of 14.21% over the forecast period (2022 - 2027). Interest in real-time payments has been robust in the Middle East region, where a number of faster payment initiatives have started up or are about to introduce. Certain Middle Eastern governments are actively encouraging people to drop cash.

  • The QNB Visa credit card provides cardholders with a lot of opportunities and exclusive offers and a seamless payment experience when using their physical cards or making digital transactions through QNB Pay digital wallets.
  • As Qatar moves toward a cashless economy in processing for the 2022 World Cup, the Qatar Central Bank (QCB) has used electronic wallets to develop the environment further and increase the country's electronic payments. Qatar Central Bank has also issued a unified QR code specification and standard. Users can pay by scanning the response code (QR code) with their mobile phones at retail stores or on public transportation.
  • E-commerce adoption in Qatar increases as more consumers expect their goods and services to be provided digitally, seamlessly, and quickly. Companies are striving for a piece of the e-commerce payment spend. The payments market in Qatar is expected to grow steadily in the coming years, particularly in the services sector.
  • Credit cards are one of the most popular and common ways for Qatari consumers to make online purchases. Payments are processed between merchants and card-issuing banks by multinational financial corporations such as Visa, MasterCard, Maestro, American Express, and Discover, allowing millions of users worldwide to make purchases using branded credit cards.
  • The COVID-19 pandemic has accelerated the shift to electronic payments in Qatar, as consumers and merchants have attempted to decrease their use of cash in some situations due to health concerns about controlling banknotes and coins. Many vendors inspired the use of contactless cards and mobile banking for in-store purchases, and consumers altered their payment habits to avoid using cash and coming into contact with payment terminals.
  • Qatar people are using digital payment plans to avoid contact and the spread of infection through direct cash processing and adhere to social distancing to limit the spread of COVID-19. People prefer online purchases of essential supplies due to the closure of local marketplaces and avoiding public gatherings, increasing demand for the digital payments market.

Scope of the Report

Payments are increasingly becoming cashless, and the industry's role in fostering inclusion has become a top priority. Payments contribute to developing digital economies and drive innovation, all while serving as a stable backbone worldwide.

The payments market is divided into two segments: POS and e-commerce. E-commerce payments include online purchases of both goods and services, such as purchases made on e-commerce websites and online travel and hospitality bookings. In terms of POS, all transactions that take place at a physical point of sale are included in the market's scope.

By Mode of Payment
Point of Sale
Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
Digital Wallet (includes Mobile Wallets)
Cash
Others
Online Sale
Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
Digital Wallet (includes Mobile Wallets)
Others (includes Cash on Delivery, Bank Transfer, and Buy Now, Pay Later)
By End-user Industry
Retail
Entertainment
Healthcare
Hospitality
Other End-user Industries

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Key Market Trends

Increasing smartphone internet users

  • Previously a cash-based citizen, the dual pressures of COVID-19 and the FIFA World Cup have forced financial institutions in Qatar to go digital. As a result, there has been a massive increase in cashless payments, which the new Qatar Mobile Payments System now supports.
  • Cross-border payments have significant growth in the Middle East, with the UAE and Saudi Arabia hosting two of the world's three most large remittance corridors. Over the next five years, agreements between countries for real-time settlement and the expansion of digital money-transfer operators will be critical drivers in cross-border transactions.
  • Qatar has one of the highest smartphone penetration rates in the Middle East. With rising internet penetration and the introduction of highly engaging mobile shopping apps, m-commerce is undoubtedly an emerging business avenue for Qatari companies. While still in its infancy, mobile shopping in Qatar is expected to grow in popularity as consumers become more aware of the safety and security features and become more acquainted with the numerous benefits of being able to shop on the go.
  • Retail transactions are increasingly being conducted electronically, owing to factors such as poorly developed digital-payments infrastructure and services, underbanked consumer and merchant segments, and a cultural preference for cash. However, new government and regulatory initiatives, as well as the entry of new local, regional, and global payment networks, are bringing about rapid change.
Qatar Payments Market

Growth in online advertisement expenditure.

  • Open banking in Qatar differs from the other reforms mentioned in it not only allows payments to be digitized, but it also creates conditions in which other performers can disintermediate banks. Open banking will drive the decoupling of savings account balances and payment capabilities in the future.
  • The ease of the approval process is one of the features that has made BNPL so popular, particularly among younger consumers in Qatar. The softer credit checks used by BNPL providers result in more approvals when compared to bank and premium brand credit cards and pre-BNPL retail installment plans. The absence of credit bureau reporting is another factor driving endorsements. Many BNPL providers do not report new accounts to credit bureaus, making it difficult to assess a consumer's overall credit exposure. This is becoming an increasingly complex issue as BNPL expands.
Qatar Payments Market

Competitive Landscape

Qatar's e-commerce payments market is moderately fragmented, with a few significant players. Furthermore, new entrants in the country deliver innovative online payment technologies and solutions, increasing competition.

  • December 2021- QNB, the Middle East and Africa's largest financial institution, has launched WeChat Pay, China's premier mobile payment solution, to retailers in Qatar, demonstrating its commitment to assisting retail sector clients seeking to attract Chinese customers.
  • March 2021- Visa Inc., in partnership with the ENTERTAINER business, a global loyalty and rewards solutions provider, launched the new experience with the ENTERTAINER app for its premium cardholders in the MENA region. The free app will allow Visa Platinum, Visa Signature, and Visa Infinite cardholders to take advantage of a wide range of incredible deals until January 31, 2023.

Recent Developments

  • May 2022- QNB Group, the FIFA World Cup 2022 Official Middle East and Africa Supporter, has partnered with Visa, FIFA's Official Payment Services partner, to launch a unique campaign exclusively for QNB Visa credit cardholders to win a once-in-a-lifetime experience of witnessing the FIFA World Cup Qatar 2022.
  • May 2022- QNB, the Middle East and Africa's largest financial institution, has announced its Senior Lead sponsorship of the Euromoney Meeting held in 2022, which will take place on May 29th. This year's Euromoney conference focuses on Environmental, Social, and Governance (ESG) and climate change, Global and Qatari macro outlook, and Digitizing Qatari banking and financial services, with panel discussions and participation from government officials and financial sector professionals.
  • March 2022- As the Official Bank Sponsor of this year's Qatar Smart City Expo Doha 2022, QNB Group, the largest financial institution in the Middle East and Africa, launched its latest digital banking products and services at the bank's pavilion during the two-day event organized by the Ministry of Communications and Information Technology (MCIT).
  • April 2021- Mastercard and Saudi fintech company Geidea signed the first strategic partnership agreement in the Middle East and North Africa to accept Mastercard payments for Tap on Phone solutions in Saudi Arabia. Geidea will make this contactless payment acceptance technology available to businesses to use smartphones as payment acceptance devices.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definitions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Stakeholder Analysis

    3. 4.3 Industry Attractiveness-Porter's Five Force Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Evolution of the payments landscape in the country

    5. 4.5 Key market trends pertaining to the growth of cashless transaction in the country

    6. 4.6 Impact of COVID-19 on the payments market in the country

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Growing Real-time Payment Systems being launched in key GCC countries

      2. 5.1.2 Increasing use of a digital wallet

    2. 5.2 Market Challenges

      1. 5.2.1 Difficulties in Cross-border Payments Operation

    3. 5.3 Market Opportunities

      1. 5.3.1 Increasing Use of internet Banking

      2. 5.3.2 New entrants might well drive innovation, resulting in greater adoption.

    4. 5.4 Key Regulations and Standards in the Digital Payments Industry

    5. 5.5 Analysis of major case studies and use-cases

    6. 5.6 Analysis of key demographic trends and patterns related to payments industry in the country Qatar (Coverage to include Population, Internet Penetration, Banking Penetration/Unbanking Population, Age & Income etc.)

    7. 5.7 Analysis of the increasing emphasis on customer satisfaction and convergence of global trends in the country Qatar

    8. 5.8 Analysis of cash displacement and rise of contactless payment modes in the country Qatar

  6. 6. Market Segmentation

    1. 6.1 By Mode of Payment

      1. 6.1.1 Point of Sale

        1. 6.1.1.1 Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)

        2. 6.1.1.2 Digital Wallet (includes Mobile Wallets)

        3. 6.1.1.3 Cash

        4. 6.1.1.4 Others

      2. 6.1.2 Online Sale

        1. 6.1.2.1 Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)

        2. 6.1.2.2 Digital Wallet (includes Mobile Wallets)

        3. 6.1.2.3 Others (includes Cash on Delivery, Bank Transfer, and Buy Now, Pay Later)

    2. 6.2 By End-user Industry

      1. 6.2.1 Retail

      2. 6.2.2 Entertainment

      3. 6.2.3 Healthcare

      4. 6.2.4 Hospitality

      5. 6.2.5 Other End-user Industries

  7. 7. Competitive Landscape

    1. 7.1 Company Profiles

      1. 7.1.1 Commercial Bank Of Qatar

      2. 7.1.2 Qatar National Bank

      3. 7.1.3 Doha Bank

      4. 7.1.4 PayPal Holdings, Inc

      5. 7.1.5 CashU

      6. 7.1.6 Alphabet Inc

      7. 7.1.7 ACI Worldwide Inc.

      8. 7.1.8 Samsung Electronics Inc

      9. 7.1.9 Apple Inc.

      10. 7.1.10 Mastercard (MasterPass)

    2. *List Not Exhaustive
  8. 8. Investment Analysis

  9. 9. Future Outlook of the Market

**Subject to Availability

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Frequently Asked Questions

The Qatar Payments Market market is studied from 2022 - 2027.

The Qatar Payments Market is growing at a CAGR of 14.21% over the next 5 years.

Commercial Bank Of Qatar, Qatar National Bank , Doha Bank, PayPal Holdings Inc., CashU are the major companies operating in Qatar Payments Market.

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