Market Trends of Qatar Payments Industry
High Proliferation of e-commerce and Rising Adoption of m-commerce Drives the Market Growth
The growing e-commerce market is influencing the growth of digital payment methods. With increased online shoppers using mobile devices, the demand for mobile payment methods is expected to increase significantly over the coming years.
Increased investment in and acceptance of digital financial services is critical to take the full potential of the digital age. Cash and cheques dominate the economy, and e-commerce is still primarily based on cash-on-delivery. Future acceptance of digital payments offers tremendous potential for enhancing the efficiency of government institutions and digital enterprises and easing the everyday life of Palestinians.
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 shopping on the go. According to OpenSignal, the 5G network in Qatar offered the fastest download speeds in March 2022, with users achieving an average of 294.5 megabits per second (Mbps).
Several payment solution providers collaborate with E-commerce giants to deliver seamless payment checkout solutions. Furthermore, numerous E-commerce giants, such as Samsung pay, have already established digital wallets to gain market dominance. It also leads to the expansion of the Qatar E-commerce market.
In November 2022, Mastercard announced that cardholders in Qatar can now use Samsung Wallet. This digital wallet solution enables mobile payment services and more to make secure contactless payments at various online, on-site, and in-store locations worldwide. Mastercard collaborated with Samsung to bring Samsung Wallet to Qatar, accelerating the market's digital transformation path. According to Mastercard's New Payments Index, 85% of individuals in MENA have used at least one new payment method in the previous year, indicating a definite shift toward a more digital, connected future.
Retail End-user Industry Segment is Expected to Hold Significant Market Share
Retail transactions, digital payment infrastructure and services, and underbanked consumer and merchant segments are increasingly conducted electronically. However, new government and regulatory initiatives and the entry of new local, regional, and global payment networks are bringing about rapid change.
Banks and financial institutions outsourced their payment platform technology and operations to third parties to increase digital innovation and stay relevant in a competitive market. They relied on these dependable, flexible retail payment services that could be swiftly scaled up to meet changing client demands. Third-party solutions assisted them in filling technology gaps by providing complementary services that allowed them to match client needs without investing heavily in technology.
As payment methods incorporated in branded apps grow more complex and safer, they become more popular. As mobile payments and smartphones make it easier to purchase and pay without bringing out cash or even a wallet, online eCommerce is eroding physical store retail.
In February 2023, Qatar Islamic Bank (QIB), Qatar's digital bank, partnered with Mastercard, a global payment industry technology leader, to launch its latest smart payment solution for retailers. The new QIB SoftPOS app transforms an Android smartphone into a POS terminal and allows secure contactless payment acceptance on the device using inbuilt Near-Field Communication (NFC) capabilities.
Increasing internet penetration in Qatar is driving the market growth. According to Speedtest, Qatar boasts some of the global fastest average mobile internet connections, registering average median speeds of over 124.29 Mbps as of September 2022.
