Economic reforms by the Saudi government and Greater Focus on Increasing Financial Inclusion has led to the Growth of Debit Cards, Credit Cards and Other Digital Payment Methods in the Country: Ken Research

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Analysts at Ken Research in their latest publication Saudi Arabia Cards and Payments Market Outlook to 2023 – Increasing Penetration of Islamic Credit Cards Coupled with Rising Preference for Online Shopping to Drive Market Growth”, believe that increasing penetration of debit cards and credit cards will create a positive impact on Saudi Arabia cards and payments market. The market is expected to register a positive CAGR of 12.7% in terms of transaction volume during the forecast period 2018-2023. The market is further expected to be driven by the growing E-commerce industry, rising mobile phone penetration and government push towards financial inclusion.

Saudi Arabia Cards and Payments Market Outlook to 2023

Government launched Mada national payment system to support Mada debit cards. As a result of which, banks are now able to offer online payment services to card holders. Mada debit cards are issued by local banks and are part of the digital payment strategy to reduce cash transactions in the country thus; enabling the use of debit cards to make online payments without restrictions over secure payment platforms.

In 2018, Visa established a partnership with the Saudi Payments Network to launch the Mada Pay feature on Mada debit cards, being the first multi-issuer mobile payment platform to offer contactless NFC (near field communications).

Banks have increased their focus on establishing customer relationships through offering advanced services and competitive loyalty programmes. For instance, Al Rajhi Bank ensures it offers its customers a wide variety of credit card options which are Sharia-compliant and have wide acceptance and flexibility worldwide.

Customer Engagement by Banks: Since digital channels have become a better way to reach out to customers, banks in Saudi Arabia have started to shift from customer experience to customer engagement. The ability to personalize communications, proactively respond to events and queries, and preventing fraudulent activities are some of the key factors in order to improve customer loyalty and retention. Saudi Arabia is making huge investments in digital technology in order to transform the financial industry.

Implementation of VAT: With the implementation of the Value Added Tax in the beginning of 2018 and other increases in the cost of living in the country for most expatriates, consumers found it hard to adapt to changing economic policies and cover their expenditure. The new dependent visa fees for expatriates require expatriates to pay monthly, leading to an increase in the use of credit cards for most household expenses. Loyalty programmes, discounts and cash back points are thus lucrative for consumers in the KSA, and issuers are gearing up to offer attractive loyalty programmes.

Digitization: Huge investments are being made in digital technology to transform the financial industry in Saudi Arabia. Both consumers as well as retailers are more digitalized and technology-oriented. The shift is towards mobile and online payments (especially debit and credit cards), which has been the priority of financial entities looking for customer satisfaction. The penetration rate is low but is steadily increasing over the last decade from cash based economy to electronic payments.   Banks are gearing up to increase this pace of digitization exponentially. Bank transfers to government, payments for custom duties, B2B payments are gradually happening through credit cards.

Saudi Arabia Cards and Payments Market

Payment Cards in Saudi Arabia

Payment Services in Saudi Arabia

Payment System History Saudi Arabia

Payment System Genesis Saudi Arabia

Saudi Arabia Cards and Payments Market Outlook

Saudi Arabia Payments System Market Outlook

Saudi Arabia’s National Payment System

Saudi Arabia’s Cards and Payments Market Segmentation

Paper Clearing Market Saudi Arabia

Cheques Clearing System Saudi Arabia

Paper Clearing Market Size Saudi Arabia

Paper Clearing Market Segmentation Saudi Arabia

Credit Cards in Saudi Arabia

Debit Cards in Saudi Arabia

MADA Cards in Saudi Arabia

SARIE System in Saudi Arabia

SARIE Market Size Saudi Arabia

SARIE Market Segmentation Saudi Arabia

Interbank Payments in Saudi Arabia

Saudi Arabia Payments Market Size

Saudi Arabia Economic Overview

Cheque Clearing System Saudi Arabia

Banks in Saudi Arabia

Islamic Banking in Saudi Arabia

ATMs in Saudi Arabia

Technology Trends in Saudi Arabia

Credit Cards Revenue Streams Saudi Arabia

Debit Cards Revenue Streams Saudi Arabia

Payment Card Operators in Saudi Arabia

Payment Card Issuers in Saudi Arabia

Credit Cards Trends Saudi Arabia

SAMA Regulations Saudi Arabia

Payment Market Trends Saudi Arabia

National Commercial Bank Saudi Arabia

Saudi British Bank

Riyadh Bank

Al Rajhi Bank

Arab National Bank

Samba Financial Group

Key Segments Covered:

Saudi Arabia Payment Landscape

SARIE Market

By Payment Type(Interbank Payments, Customer Payments, Others)

Paper Clearing Market

By Type of Cheques (Commercial and Personal Cheques and Interbank Cheques)

By Region

Credit Cards Market

Number of Cards in Circulation,

Number of Transaction

Transaction Volume

Segmentation By Type(Personal and Commercial)

Revenue Stream in Credit Card

Credit Card Details by Major Issuers

Regulations and Requirements for Credit Cards

Competition Scenario by Issuers and Operators

By Number of Cards in Circulation

By Payment Transaction Volume

Future Projections

Debit Cards Market

Number of Cards in Circulation,

Number of Transaction

Transaction Volume

Revenue Stream in Debit Card

Competition Scenario by Issuers and Operators

By Number of Cards in Circulation

By Payment Transaction Volume

Future Projections

Time Period Captured in the Report:

Historical Period: 2013-2018

Forecast Period: 2018-2023

Banks Covered:

National Commercial Bank

Saudi Arabia British Bank

SAMBA Financial Service

Riyad Bank

Al Rajhi Bank

Arab National Bank

Key Topics Covered in the Report

Saudi Arabia Payments Landscape

SARIE Market

Paper Clearing Market

Payment Cards Stakeholders

Digital Phase in Saudi Arabia

Credit Cards Market Size

Credit Cards Market Segmentation

Revenue Stream in Credit Card System

Islamic Banking

Regulations and Requirements for Credit Cards

Competition Scenario in Credit Cards Market

Debit Cards Market Size

Debit Cards Market Segmentation

Revenue Stream in Debit Card System

Competition Scenario in Debit Cards Market

Snapshot on Prepaid Card Market

Snapshot on Charge Card Market

Trends and Developments

Issues and Challenges

Analyst Recommendations

For more information, refer to below link:

Saudi Arabia Cards and Payments Market

Related Reports

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Contact Us:

Ken Research

Ankur Gupta, Head Marketing & Communications

sales@kenresearch.com

+91-9015378249

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