Press Release Description
Cards & Payments Market to thrive with Surging Digital Payment Adoption in Saudi Arabia
The Saudi Arabia Cards & Payments market is projected to grow at a CAGR of around 8.40% during the forecast period of 2024-30, cites MarkNtel Advisors in the recent research report. The government's accelerating adoption of technologies to strengthen the digital infrastructure is one of the factors contributing to the growth of this payment method in Saudi Arabia. The government has also launched a mission that outlines the investment plans to upscale the living of the residents of Saudi Arabia by building leisure, attractions, and infrastructure of the country on the pretext to variegate its economy, which has been dependent on oil for the past ten years.
Moreover, the government has mandated & encouraged upscale lodging, dining establishments, etc., to support cashless transactions by offering customers the choice to pay with any financial card, such as a credit card, debit card, etc. Since salaries are deposited in banks, the country's rising employment rate has increased the number of people who can open bank accounts. In addition, cards are increasingly outperforming more traditional payment methods like cash in terms of speed & ease of use, which also fuels Saudi Arabia's demand for cards.
Additionally, consumers are gravitating more toward new, emerging technologies like touchless ones that let them make payments on the go or without inconvenience. Therefore, financial service providers are integrating & introducing new cards to meet the end-users growing demand for these technologies. For instance, the largest telecom company in Saudi Arabia, STC, introduced contactless cards in 2021 for use at point-of-sale (POS) terminals, e-commerce transactions, and cash withdrawals at domestic and international ATMs.
As contactless technologies have gained so much traction, the need for new smart cards would only enhance in the years to come, further states the research report, “Saudi Arabia Cards & Payments Market Analysis, 2024.”
Rising Bankable Population Augmented the Demand for Debit Cards in Saudi Arabia
Based on the product type, the market is bifurcated into Debit Cards, Fleet/Fuel Cards, ATM Cards, Prepaid Cards, and Credit Cards. Among them, Debit Cards historically held the largest share due to the nation's steadily increasing bankable population. Moreover, owing to the additional benefits such as reward points, cashback offers, enhanced security, etc., offered by debit cards, individual users now favor using debit cards for payments. Moreover, they offer users the ability to make more responsible purchases since they deduct money from their bank accounts when they make purchases.
There are currently about 31 million issued cards, of which 88% are debit cards & 12% are credit cards, according to data provided by the financial consulting firm Adyen in 2022. Hence, the rising use of debit cards by consumers, owing to the inclination of the government to facilitate the digital economy, would further enhance the share of debit cards in the forecast years.
Growing Outbound Tourism to Augment the Necessity for Cards During Travel & Tourism
Based on the applications, the market is divided into Food & Groceries, Health & Pharmacies, Travel & Tourism, and Hospitality. Of them, Travel & Tourism acquired a significant share since only a few methods are used to transact money during international trips. Therefore, consumers prefer to use cards when they travel. Hence, the market share of travel & tourism has seen significant growth over the years.
Travelers use cards to make payments since they offer convenient transactions even during a foreign tour. They even save time during the currency exchange and provide convenience to consumers. Hence, the end-users who travel outside the country due to work reasons, medical conditions, etc., are driving the demand for cards & upscaling the market share of travel & tourism end-users to use cards.
Further, outbound tourism has also expanded significantly due to the country's growing westernization & rising disposable income. More than 8 million people traveled outside of Saudi Arabia in 2021, according to government statistics. Therefore, the rising nation's outbound tourism would also raise demand for cards for international payments.
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including Saudi National Bank SNB, The Al Rajhi Bank, Alawwal Bank, Banque Saudi Fransi, Riyad Bank, Arab National Bank, Bank Al Jazira, Bank Al Bilad, Saudi Investment Bank, Alinma Bank and other are looking forward to strengthening their market position.
Key Questions Answered in the Research Report
- What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
- What are the trends that have shaped the industry to its current form?
- What key factors would propel and impede the industry across the country?
- How has the industry been evolving in terms of geography & product adoption?
- How has the competition shaped across the country, followed by their comparative factorial indexing?
- How have buying behavior, customer inclination, and expectations from product manufacturers evolved during 2019-30?
- Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?
Place an order
100% Safe & Secure
Strongest encryption on the website to make your purchase safe and secure