Market Overview
Conducting transactions digitally using financial cards & payment systems has become common across regions, including GCC. With greater convenience, quicker operations, and efficiency, among other aspects, the utilization of cards & payment methods has gained swift momentum throughout the region.
In fact, with improving economic conditions and the availability of such modes for transactions, the penetration of financial cards & payment methods is higher, leaving behind the traditional payment methods like cash payments, demand drafts, etc.
Market Insights
The GCC Financial Cards & Payments Market is projected to grow at a CAGR of around 11.2% during the forecast period, i.e., 2022-27. The market growth attributes to growing encouragement by the governments of different countries in the GCC to adopt digitalization across industries, including the financial sector. It, in turn, is demonstrating a rise in the utilization of financial cards & payments to make online transactions.
Besides, an inclination of the consumers toward using online payments & cards for transactions is also encouraging different financial & retail stores to make a paradigm shift to online platforms and contribute to the market growth. The same aspect is also generating growth opportunities for the leading players to increase their service offerings and cater to the rising consumer demands throughout the region.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR (2022-2027) | 11.2% |
| Country Covered | UAE, Saudi Arabia, Qatar, Bahrain, Kuwait, Oman |
| Key Companies Profiled | Visa, Mastercard, American Express, Citibank, HSBC, PayPal express checkout, HDFC Bank, Diners Club, Barclays, Hyperpay etc. |
| Unit Denominations | USD Million/Billion |
Moreover, technological advancements in product offerings like the integration of blockchain into transactions for greater security shall also pave the way for the GCC Financial Cards & Payments Market expansion and generate remunerative opportunities for the leading players.
Furthermore, a rise in the adoption of online shopping & consumer inclination toward cashless payments is the other aspect instigating retail stores & financial institutions to bring QR-code-based payment systems and enhance the overall transaction model for people across different countries in the region. Hence, the overall growth of this industry is anticipated to be lucrative and shall witness substantial growth in the coming years.
Additionally, as the living standards and economic conditions of the people in the GCC is dynamic, the utilization of financial cards like credit cards is also accelerating rapidly. Yet, growing cases of fraudulent activities using these cards might restrain the fledged growth of the GCC Financial Cards & Payments Market in the coming years.
Impact of Covid-19 on the GCC Financial Cards & Payments Market
The Covid-19 pandemic had significant impacts on most industries across GCC. However, the crisis accelerated the adoption of online transactions & boosted the Financial Cards & Payments Market growth in recent years. As the governments of different countries imposed lockdowns & movement restrictions for uncertain durations, people showed greater inclination on digital platforms to purchase goods & avail services like exciting deals & doorstep delivery, among others.
Such a massive transformation was principally due to the availability of safe, private, and reliable mediums, allowing consumers to buy goods & services without difficulties. Even when the pandemic situation came back in control, online platforms continued witnessing a large consumer influx.
In addition, the same trend is anticipated to prevail in the coming years and lead the GCC Financial Cards & Payments Market toward substantial growth in the coming years.
Market Segmentation
Based on the Type of Payment:
Among all, C2B (Customer to Business) dominated the GCC Financial Cards & Payments Market with the largest share in the previous years and is anticipated to prevail in the same trend during the forecast period. It owes principally to the rapidly increasing penetration of the internet and smartphones among consumers, demonstrating a swift rise in e-commerce activities across different countries in the region. It, in turn, is demonstrating a rise in the popularity of e-commerce shopping and a consumer inclination toward online shopping.
Since such platforms offer greater convenience & leisure for the consumers, the utilization of secure digital experience and rising adoption of cashless payment is augmenting the growth of C2B payments. Besides, especially amidst the Covid-19 pandemic, the utilization of this payment method witnessed substantial demand and is likely to prevail in the same trend in the coming years. It shall further lead the overall growth of the GCC Financial Cards & Payments Market toward a significant rise during the forecast period.
Country Landscape
Geographically, the GCC Financial Cards & Payments Market expands across:
Here, UAE is anticipated to acquire the largest market share during the forecast period. It owes principally to the country having numerous shopping complexes, the establishment of luxury brands, and plenty of things to shop for, stimulating the utilization of financial cards & payments to make transactions across locations conveniently.
Besides, the massive influx of tourists, pilgrims, and migrants in the country are also augmenting the demand for these transactional services across commercial areas like hotels, restaurants, cafes, shopping malls, retail stores, online platforms, and other locations. Hence, the need for QR-code-based payment systems is gaining momentum and backing the Financial Cards & Payments Market growth across the UAE.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The GCC Financial Cards & Payments Market is projected to grow at a CAGR of around 11.2% during 2022-27.
A. Increasing online shopping & consumer inclination toward cashless payments is a key aspect instigating retail stores & financial institutions to bring QR-code-based payment systems and enhance the overall transaction model for people. It, in turn, is acting as a prominent factor driving the GCC Financial Cards & Payments Market through 2027.
A. C2B is anticipated to emerge as an area of remunerative opportunities for the leading players in the GCC Financial Cards & Payments Market during the forecast period.
