Market Size of Saudi Arabia Payments Industry
|Study Period||2018 - 2028|
|Base Year For Estimation||2022|
|Forecast Data Period||2023 - 2028|
|Historical Data Period||2018 - 2021|
*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.