The availability of several modes of payment for users has made transactions of money extremely easy and convenient. The diverse payment methods include cards, cash, online applications, cheques, etc., among which cards hold a significant market share since they are preferred by the majority of the population. A card is a piece of metal or plastic allotted by a bank or other financial institution that permits users to withdraw money or make purchases online or in person. Cards are extremely handy, offer swift and hassle-free transactions, are convenient, and function all across the world resulting in their widespread adoption to facilitate transactions.
The Saudi Arabia Cards & Payments Market is anticipated to grow at a CAGR of around 8.40% during the forecast period, i.e., 2024-30. The major causes resulting in the escalation of cards & payments in Saudi Arabia include the escalating rate of the bankable population, and soaring adoption & implementation of technologies by the government to upgrade and develop the digital infrastructure. Furthermore, the government intends to endorse cashless transactions in the country by directing premium hotels, restaurants, etc., offering end-users the choice to accomplish payments through any financial card like credit cards, debit cards, etc.
Breaking Down the Saudi Arabia Cards & Payments Market Segmentation
- By Type of Cards (Debit Cards, Fleet/Fuel Cards, ATM Cards, Prepaid Cards, and Credit Cards)
- By Type of Payment Instrument (Cards, Mobile Wallets, Credit Transfers, Cash, Debit Cards, and Checks)
- By Type of Payments (B2B, B2C, C2C, and C2B (E-commerce Payments, and Payments at POS Terminals))
- By Transaction Type (Domestic and Foreign)
- By Application (Food & Groceries, Health & Pharmacies, Travel & Tourism, Hospitality, and Others (Media & Entertainment, etc.))
- By Institution Type (Financial and Non-Financial)
- By Region (Central, East, West, and South)
Debit cards retained the highest share in the Saudi Arabia Cards & Payments Market in the past years. The major reason attributed to the popularity of debit cards includes the growing number of bankable residents in Saudi Arabia. Moreover, the added benefits offered by debit cards, including cashback, reward points, and offers along with improved security result in a massive preference for debit cards by the consumers. Also, the swift urbanization & soaring adoption of digital technologies are likely to boost the segment of debit cards substantially in the forecast period.
A substantial rise was recorded by the Travel & Tourism segment regarding the Cards & Payments Market in the past years. Since, the transfer of money while international travel is probable via limited means, thus the consumers opt for cards while traveling. Offering ease of payment, convenience, and seamless transactions both nationally & internationally, cards have a much higher preference rate precisely among tourists. Moreover, cards are easy to carry and save time for currency exchange. The demand for cards in the travel & tourism segment is further accelerated, owing to the increasing outbound tourism in Saudi Arabia due to varied causes such as business travel, medical reasons, etc.
Top Companies Retaining the Highest Share in the Saudi Arabia Cards & Payments Market
Several companies such as 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 others, have held a significant share in the market giving them a strong market position & a solid stand.
