Saudi Arabia Payments Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Saudi Arabia Payments Market Growth and it is Segmented by Point of Sale (Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards), Digital Wallet (includes Mobile Wallets), Cash and 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)), and By End-user Industry (Retail, Entertainment, Healthcare, Hospitality, Other End-user Industries)

Saudi Arabia Payments Market Size

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saudi arabia payments market
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 15.40 %
Market Concentration Medium

Major Players

Saudi Arabia Payments Market

*Disclaimer: Major Players sorted in no particular order


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Saudi Arabia Payments Market Analysis

The Saudi Arabia Payments Market is expected to grow at a CAGR of 15.4% over the forecast period 2022 to 2027. It is supposed to be one of the most advanced markets, with payment methods that meet customers' needs and help the Kingdom's drive toward a cashless society. According to the Cebr, the theoretical impact of real-time payments on formal GDP might increase by 2.8% by 2026. However, these are hypothetical advantages; they do not rule out the possibility of non-instant electronic or paper-based payments in the future.

  • According to the Saudi Central Bank's 15th annual report on the insurance market, the insurance sector rose by 8.4% in 2021, with total written premiums of SAR 42 billion, with the Protection and Savings and Property insurance classes seeing significant increases in written premiums.
  • With the rapid increase in the global economy, mobile phones (especially smartphones) have become an essential part of an individual. Moreover, the internet has also become a necessary part of day-to-day life for most people worldwide. Due to this, the penetration of smartphones and internet users increased worldwide, resulting in a significant boost in the payments market.
  • The increasing number of internet Smartphone users is driving the Saudi Arabia payment market. For instance, According to the Martech vibe magazine, stated on March 2022, Saudi Arabia, which has 40.20 million mobile customers, is seeing an increase in smartphone usage. With 24.2 million smartphone users, it ranks third globally, with over three-quarters of the population using smartphones.
  • The increasing internet penetration and an increase in the E-commerce sector are driving the Finland payment market. According to the Martech vibe magazine, The number of internet users in 2021 is expected to be around 39.53 million. More than 95% of the population has access to the internet. This is a great figure in terms of internet penetration in the country. The internet penetration rate is expected to reach 97 percent by 2025. The number of people who use the internet on their phones is 32.03 million.
  • Furthermore, the Covid-19 epidemic has supported a significant shift in payment practice, such as a decrease in cash payments, a move from in-store to online payment methods, and the adoption of quick settlements. These shifts have offered new opportunities for Saudi Arabia's payment providers.

Saudi Arabia Payments Market Trends

This section covers the major market trends shaping the Saudi Arabia Payments Market according to our research experts:

E-commerce to Drive the Saudi Arabia Payments Market

  • With the increasing number of smartphones worldwide and high-speed cellular networks present in most countries worldwide, the e-commerce industry is growing. With an increase in the E-commerce industry, mobile transactions are also expected to grow rapidly, providing a significant boost to the mobile payments market.
  • During the COVID-19 pandemic, the E-commerce industry has seen a significant rise owing to lockdown worldwide. Customers were reluctant to purchase from offline stores due to fear of contracting COVID-19 through physical money. People use electronic payment methods, including mobile payment, to pay for goods and services.
  • According to the PAYPERS News, In Dec 2021, MoneyGram's API-driven infrastructure and network were used by urpay, a Saudi Arabia-based digital wallet, to enable international transactions from Saudi Arabia. This strategic agreement builds on MoneyGram's recent success in the Middle East, accelerating digital growth in one of the world's most important outbound remittance markets. MoneyGram will be able to increase the volume of payments processed through its platform as a result of this partnership, as well as expand its digital offering.
  • In June 2022, PayPal Holdings Inc. made a USD 45 billion offer to buy digital pinboard site Pinterest Inc., which could lead to additional e-commerce tie-ups between financial technology and social media companies. The conversations come as online buyers increasingly buy products they see on social media, frequently by following "influencers" on platforms like Instagram and TikTok. PayPal would be able to capture more of that e-commerce growth and diversify its revenue streams by purchasing Pinterest.
 saudi arabia payments market share

Retail sector to have a significant growth

  • The retail industry is one of the top industries in Saudi Arabia. As a result, the retail sector represents many opportunities for new business, trading, and investing. The payment market in Saudi Arabia is developing with the changing customer behavior. Trends such as mobile payments, internet banking, instant payments, and the Government's growth initiatives are affecting the payment market in the country.
  • In addition, citizens spend a significant share of money on categories that include food, beverages, tobacco, clothing, footwear, cosmetics, body care products, furniture, appliances for the household, and leisure items such as watches and accessories. Furthermore, various payment checkout solutions offered by top retail market players in the region are further accelerating the growth of the retail sector.
  • According to the Saudigazette on January 2022, The Saudi Central Bank (SAMA) stated that electronic payments accounted for 57% of total retail transactions in 2021, above the 55% objective set by the Financial Sector Development Program (FSDP), one of Saudi Vision 2030's core programs.
  • This continuous rise in the retail sector provides various opportunities to payments providers in the region to enhance their payment platforms and apps to cater to the increasing demand. Furthermore, the rising adoption of digital wallets and contactless payments by cards further provides lucrative opportunities for payment providers in the region.
  • BinDawood Holding Company, one of Saudi Arabia's top grocery retail operators of hypermarkets and supermarkets, announced the launch of a new Danube store in Jeddah, Danube Corniche Commercial Center, Al Balad, in October 2021.
saudi arabia payments market forecast

Saudi Arabia Payments Industry Overview

The Saudi Arabia Payments Market is moderately competitive in the presence of market players such as Paypal, Moyasar, Payfort, Paytabs, and Alipay. Companies operating in the market are adopting various initiatives to expand their presence, which adds to market expansion. Furthermore, the government's promising efforts to promote digital payments will strengthen market competition in the coming years.

  • April 2022 - Following the successful pilot in the Regulatory Sandbox, the Saudi Central Bank (SAMA) announced the licensing of Sulfah Financing Company, a closed joint-stock company with a capital of SAR 10 million, to conduct consumer microfinance activity utilizing financial technology.
  • March 2021 - Fiserv, Inc. (NASDAQ: FISV), a global provider of payments and financial services technology solutions, announced that it had signed a definitive agreement to acquire Pineapple Payments. Fiserv will continue to provide payment processing services to Pineapple Payments merchants while enhancing its seamless delivery of an array of customer-focused, innovative solutions.

Saudi Arabia Payments Market Leaders

  1. PayPal

  2. Moyasar

  3. Payfort

  4. Paytabs

  5. Alipay

*Disclaimer: Major Players sorted in no particular order

 PayPal, Alipay, Moyasar,  Payfort,  Paytabs,  Hyperpay,  STC Pay, Bayan Portfolio,  Mada Pay, Apple Pay,
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Saudi Arabia Payments Market News

  • June 2022 - HyperPay, a KSA-based and MENA serving payments services provider, has raised USD 36.7 million (SAR 138 million) in a fundraising round led by Mastercard, including Amwal Capital Partners and AB Ventures.
  • April 2021 - Mastercard, the world's largest technology business, and Geidea, Saudi Arabia's leading fintech company by market share, announced a strategic alliance to accept Mastercard payments on the Tap-on-Phone solution Saudi Arabia the first such arrangement in the Middle East and North Africa. Geidea is the first fintech startup in the Kingdom to launch contactless payment acceptance technology, allowing companies to take payments using smartphones.

Saudi Arabia Payments Market Report - Table of Contents


    1. 1.1 Study Assumptions and Market Definitions

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Industry Stakeholder Analysis

    3. 4.3 Industry Attractiveness-Porter's Five Forces 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


    1. 5.1 Market Drivers

      1. 5.1.1 Growth in the e-Commerce Industry drives the Payments Market in Saudi Arabia

      2. 5.1.2 Key Retailers and the Government are Promoting Market Digitization Through Activation Programs

      3. 5.1.3 Growth of Real-time Payments, Buy Now Pay Later services in the country

    2. 5.2 Market Challenges

      1. 5.2.1 Lack of a standard legislative policy remains especially in the case of cross-border transactions

    3. 5.3 Market Opportunities

      1. 5.3.1 Move towards Cashless Society

      2. 5.3.2 New Entrants to Drive Innovation Leading to Higher 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 (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

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

  6. 6. Market Segmentation

    1. 6.1 By Mode of Payment

      1. 6.1.1 Point of Sale

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

        2. Digital Wallet (includes Mobile Wallets)

        3. Cash

        4. Others

      2. 6.1.2 Online Sale

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

        2. Digital Wallet (includes Mobile Wallets)

        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 PayPal

      2. 7.1.2 Alipay

      3. 7.1.3 Moyasar

      4. 7.1.4 Payfort

      5. 7.1.5 Paytabs

      6. 7.1.6 Hyperpay

      7. 7.1.7 STC Pay

      8. 7.1.8 Bayan Portfolio

      9. 7.1.9 Mada Pay

      10. 7.1.10 Apple Pay

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

  9. 9. Future Outlook of the Market

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Saudi Arabia Payments Industry Segmentation

The payments market is segmented by two modes of payment - POS and e-commerce. E-commerce payments include online purchases of goods and services such as purchases made on e-commerce websites and online booking of travel and accommodation. However, it does not include online purchases of motor vehicles, real estate, utility bill payments (such as water, heating, and electricity), mortgage payments, loans, credit card bills, or purchases of shares and bonds. As for POS, all transactions that occur at the physical point of sale are included in the market scope. It includes traditional in-store transactions and all face-to-face transactions regardless of where they take place. Cash is also considered for both cases (cash-on-delivery for e-commerce sales).

By Mode of Payment
Point of Sale
Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
Digital Wallet (includes Mobile Wallets)
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
Other End-user Industries
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Saudi Arabia Payments Market Research FAQs

The Saudi Arabia Payments Market is projected to register a CAGR of 15.40% during the forecast period (2024-2029)

PayPal, Moyasar, Payfort, Paytabs and Alipay are the major companies operating in the Saudi Arabia Payments Market.

The report covers the Saudi Arabia Payments Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Payments Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

The growth opportunities in the Saudi Arabia Payments Market are a) Continued government support for digital payments through policies and infrastructure development can accelerate adoption b) Development of new payment methods like contactless payments, QR codes, and instant transfers can attract new users

Saudi Arabia Payments Industry Report

The payments market in Saudi Arabia is experiencing robust growth, transitioning from traditional cash-based transactions to digital payments. This shift is driven by rapid technological advancements, increased smartphone and internet penetration, and strong government support through regulatory reforms promoting cashless transactions. The market, segmented by payment modes such as point of sale and online transactions, includes card payments and digital wallets, catering to industries like retail, entertainment, healthcare, and hospitality. Consumer preferences for convenient, fast, and secure transaction methods are reshaping market dynamics. As digital payments in Saudi Arabia continue to evolve, the landscape offers enhanced payment solutions that meet the needs of the modern financial ecosystem. For detailed insights, Mordor Intelligence™ provides statistics on market share, size, and revenue growth rate, including a market forecast outlook and historical overview. Download a free PDF sample report from Mordor Intelligence™ Industry Reports.

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Saudi Arabia Payments Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)