Middle East Online Payment Methods 2023

Description

"As of 2023, digital wallets constitute approximately 20% of the total online spending in the MENA region": new yStats.com report.

Card payments are the dominant force, but alternative payment methods are on the rise in the Middle East

Notably, digital payment adoption is high in countries like the UAE, Israel, and Saudi Arabia, where between 7 and 9 out of 10 adults embraced digital payments in 2022. In contrast, Jordan shows a lower double-digit adoption rate, highlighting variations in digital payment development within the region.

When it comes to online shopping in Saudi Arabia, there is a relatively even distribution between card and alternative payment methods. In Israel, cards play a significant role in online payments, followed by e-wallets. Moreover, the card payments market in Saudi Arabia is projected to experience a double-digit CAGR by 2027. As such, card payments maintain their dominance as a leading online payment method in the Middle East, while digital wallets account for about a fifth of the total online spending in the MENA region.

A notable trend is the anticipated double-digit CAGR in real-time payments

While card payments remain prominent in major Middle Eastern countries, alternative payments are gaining ground. This shift is evident in the increased use of real-time payments. For instance, in Saudi Arabia, the number of real-time payment transactions is expected to more than triple between 2022 and 2027, showing a double-digit CAGR. Furthermore, in the UAE, real-time payment transactions are projected to nearly quadruple during the same period, with an even higher double-digit CAGR.

Product Code: 1639

1. Management Summary

2. Global Developments

Overview of the Online and Mobile Payment Trends, September 2023
B2C E-Commerce Payment Value, in USD trillion, 2023e & 2027f
Preferred Online Payment Methods For E-Commerce Purchases, in % of Adults, June 2022
Preferred Payment Method When Shopping Online, in % of Respondents, October 2022
Value of Contactless Card Transactions, in USD trillion, 2022e & 2027f
Virtual Card Transaction Value, in USD trillion, 2022e & 2027f
BNPL B2C E-Commerce Sales, in USD billion, 2022e & 2027f
Number of BNPL Users, in millions, 2022e & 2027f
Value of Digital Wallet Transactions, in USD trillion, 2023e & 2028f
Total Number of OEM Pay E-Commerce Transactions, in USD billion, Growth in Transactions, in %, & Average Transaction Volume Per OEM Pay User, in USD, 2026f
Share of OEM Pay E-Commerce Transactions Stemming From Purchases of Digital Goods, in %, 2026f
Top Reasons Because of Which Respondents Are Likely to Abandon Checkout, in % of Adults, June 2022
Most Accessible vs Most Preferred Online Payment Method, in % of Adults, June 2022
Share of Consumers Agreeing With the Following Statements Related to Security of Online Payment, in %, April 2023
Share of Consumers Agreeing With the Following Statements Related to Digital and Mobile Wallets, in %, April 2023
Top Consumer Expectations at Checkout When Making Online Purchases, incl. "Payment Methods", in % of Respondents, October 2022
QR Code Payment Transaction Value, in USD billion, 2023e & 2028f
Cryptocurrency Payment Value, in USD billion, 2020-2025f
Mobile Money Statistics, incl. Number of Live Services, Registered Accounts, in millions, Active Accounts, in millions, Transaction Volume in millions, and Transaction Value, in USD billion, and Year-on-Year Growth, in %, by Region, 2022

3. Middle East & Africa

3.1. Regional
3.2. Middle East
- 3.2.1. UAE
  - Share of Adults That Made a Digital Payment, in %, 2022
  - Digital Payment Transaction Value, in USD billion, 2021* & 2031f
  - Number of Real-Time Payment Transactions, in millions, 2022 & 2027f
- 3.2.2. Saudi Arabia
  - Share of Adults That Made a Digital Payment, in %, 2022
  - Breakdown of B2C E-Commerce Payment Methods, in %, 2022
  - Card Payments Market Size, in USD billion, 2023e & 2027f
  - Number of Real-Time Payment Transactions, in billions, 2022 & 2027f
- 3.2.3. Israel
  - Share of Adults That Made a Digital Payment, in %, 2022
  - Breakdown of Online Payments Used For Online Purchases, in %, 2022e
  - Share of Adults That Used a BNPL Service, in %, Q3 2022
- 3.2.4. Jordan
  - Share of Adults That Made a Digital Payment, in %, 2022
  - BNPL Use, in % of Respondents, July 2022
  - Number of Digital Payment Users, by Select Digital Payment Type, in millions, August 2023
  - Number of Digital Payment Transactions, by Select Digital Payment Type, in millions, August 2023