Press Release Description
Wide-Spread Adoption of Digital Payments Solutions in Saudi Arabia Boosts the Demand for Digital Wallets
The Saudi Arabia Digital Wallet Market is projected to grow at a CAGR of 8.80% during 2023-28, cites MarkNtel Advisors in their recent research report. The increasing adoption of digital banking applications due to the rising penetration of the internet & smartphones is driving the digital wallet market in Saudi Arabia. These payment solutions are designed with encrypted security like two-factor authentication and lock & wipe features, which makes them more secure & reliable. As a result, more & more users are gradually adopting digital wallet solutions and hence fueling the overall market growth.
The rise in online shopping has led e-commerce platforms to incorporate different payment methods to provide consumers the flexibility of making payments as per their choice. These platforms have started integrating digital wallet transaction options at their payment gateways to offer a smooth payment experience to users and eliminate the reliance on conventional payment methods like cards or COD (Cash on delivery).
Additionally, the government of Saudi Arabia is laying out plans to upscale the digital infrastructure by investing in the latest technologies and encouraging cashless transactions in the country. Hence, the rising focus of the government towards improving transparency & accountability during the transaction process by adopting digital payment solutions would further elevate the demand for digital wallets in the forthcoming years, further states the research report, “Saudi Arabia Digital Wallet Market Analysis, 2023.”
Increasing Contactless Payments Pushes the Demand for Proximity-based Digital Wallets
Based on the type, the market is bifurcated into Proximity and Remote. The increasing usage of proximity-based digital wallets owing to their convenience, high security, & enhanced features is driving the digital wallet market in Saudi Arabia. Proximity wallets have a relatively faster speed of transactions than conventional payment methods, along with an additional layer of security to protect the consumer’s critical data, owing to which consumers seek to use these payment solutions over other methods. Digital payment platforms like Google Pay, Apple Pay, etc., are expanding their reach by enabling users to make payments through proximity digital wallets at different retail stores & online stores. Hence, the wide acceptance of proximity-based digital wallets is elevating their share in the digital wallet market in Saudi Arabia.
Near-Field Technology (NFC) Holds a Significant Market Share
Based on the Technology segment, the market is further bifurcated into, Near Field Communication, QR Code, Text Based/ Short Message Service, and Digital Only. Among them, the NFC acquired a significant share due to the rising integration of NFC-enabled payment terminals by retailers, restaurants, transportation systems, and other businesses in Saudi Arabia. Moreover, many modern smartphones have in-built NFC Technology digital wallets, which eliminates the need for additional hardware or accessories and makes it easy for users to adopt & use NFC-driven digital wallets, thereby driving the Saudi Arabia Digital Wallet Market.
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including STC Pay, Geidea Solutions, Hala, UrPay, Mobily Pay, Alinma Pay, Friendi Pay, Liv KSA, Meem, Mada Pay, Quick Pay, HyperPay, 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 influencing the current scenario of the market?
- What key factors would propel and impede the industry across the country?
- How has the industry been evolving in terms of geography & service adoption?
- How has the competition been shaping across Saudi Arabia?
- How has the buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2018-28?
- Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?
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