Market Research Report
Payments Landscape in Saudi Arabia: Opportunities and Risks to 2021
|Published by||GlobalData||Product code||630775|
|Published||Content info||49 Pages
|Payments Landscape in Saudi Arabia: Opportunities and Risks to 2021|
|Published: March 31, 2018||Content info: 49 Pages||
In Saudi Arabia cash remains the preferred method of consumer payment, accounting for more than 90% of the total payment transaction volume. While high-value transactions are shifting to electronic platforms, low-value transactions are mostly carried out with cash. Although the use of payment cards, primarily debit cards, is gradually rising, they are mostly used for cash withdrawals at ATMs rather than making payments at merchant outlets.
The government, however, has been taking several initiatives to promote electronic payments, one such being the introduction of the Wage Protection System regulation in September 2013. While debit cards remain the dominant payment card type, the use of credit cards remains low in Saudi Arabia for religious reasons, as Islam forbids interest. To encourage credit card use, banks are now offering Sharia-compliant credit cards in addition to regular credit cards. The gradual adoption of contactless technology, and the emergence of the e-commerce market - supported by the availability of several alternative payment methods - is likely to drive the payment card market throughout the forecast period.
To further boost electronic payments, SAMA launched a contactless payment service called Mada Atheer in November 2016, allowing Mada card holders to conduct low-value transactions by waving their card at POS terminals. In February 2018, SAMA announced its plan to extend the contactless functionality to smart devices. Consequently, in March 2018 Riyad Bank partnered with payment technology provider Gemalto to launch Saudi Arabia's first contactless payment wristband.
The growth potential in the e-commerce market has encouraged investors to set up new online platforms. In November 2016 a group of investors from the UAE, led by businessman Mohamed Alabbar and Saudi Arabia's Public Investment Fund, collectively announced the launch of Noon.com, one of the largest e-commerce platforms in the Arab world offering 20 million products. The platform was officially launched in December 2017. The rise in e-commerce transactions is further expected to drive electronic payments in the country.
The report "Payments Landscape in Saudi Arabia: Opportunities and Risks to 2021", provides top-level market analysis, information and insights into the Saudi Arabian cards and payments industry.
In depth, this report provides the following -
Companies mentioned in this report: Al Rajhi Bank, The National Commercial Bank, Riyad Bank, Arab National Bank, Saudi British Bank, Samba Financial Group, Banque Saudi Fransi, Bank AlJazira, Alawwal Bank, Mada, Visa, Mastercard, and American Express