MENA Digital Payments Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 226.53 Billion |
| Market Size (2029) | USD 380.86 Billion |
| CAGR (2024 - 2029) | 10.95 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
MENA Digital Payments Market Analysis
The MENA Digital Payments Market size is estimated at USD 226.53 billion in 2024, and is expected to reach USD 380.86 billion by 2029, growing at a CAGR of 10.95% during the forecast period (2024-2029).
The regional market鈥檚 growth has been driven by the increasing prevalence of smartphones, social interactions, and enablement programs by necessary merchants to close the gap between the physical and digital worlds.
- The adoption of digital payments in MENA has been relatively slow compared to other regions worldwide. This is due to the population's growing inclination to use cash and the banking industry's gradual modernization. However, favorable conditions in the regional market can spur the take-up of digital payments and disrupt the traditional payment value chain.
- Moreover, policymakers in both developed and developing MENA countries are getting involved in providing the necessary regulatory framework and infrastructure to support the growth of digital payments in the regional market. The central banks of Egypt, Bahrain, the United Arab Emirates, and Saudi Arabia have adopted specific initiatives to deregulate digital payment services.
- Furthermore, a transformation of mobile financial services has been witnessed in the region through payment methods, such as Careem Pay in the United Arab Emirates. A digital wallet app recently launched by Saudi Arabia's telecommunications company, STC Pay, allows people to send money to other users and digitally pay to restaurants and stores.
- Despite the rapid rise of digital payments, the market faces challenges related to data security and increased fraud in online payments. A relative lack of digital literacy in crucial emerging countries may hinder the growth of the digital payments market in the Middle East and North Africa.
- However, the availability and reach of payment infrastructure and acceptance networks can impact the card payments market. A lack of widespread point of sale (POS) terminals, reliable payment gateways, and digital payment infrastructure can limit the adoption and usage of cards, especially in smaller merchants and rural areas. These factors are influencing the growth of the market.
MENA Digital Payments Market Trends
High Proliferation of Smartphones and Social Interactions to Drive Market Growth
- The Middle East and North African digital payments market is heavily driven by the region's high internet and mobile penetration. This digital ecosystem in the region supports the latest technologies, and increased mobile and internet penetration rates are further encouraging consumers to shift toward mobile wallets as they provide ease and convenience with the best global standards of security.
- Moreover, many carriers have released inexpensive smartphones with financing options to encourage mobile broadband use. By the end of 2025, there will be 565 million smartphone connections in MENA. This is projected to be an increase of almost 200 million connections over five years, and it would mean that nearly 80% of the population has a smartphone.
- The remarkable smartphone adoption rate in Saudi Arabia is one significant factor driving the regional market's digital revolution. For instance, according to Ericsson Mobility Report, in the Middle East and North Africa, the number of subscribers to 5G services in the MEA region was to reach 60 million by 2024, representing about 3% of all mobile subscriptions in the region. GSMA also estimates there may be around 50 million 5G connections across MENA, of which 20 million connections could be in the Arab States alone by 2025. This further indicates the fast mobile adoption rates are driving the market studied.
- Additionally, the area offers fast internet access, allowing instant money transfers via digital payments. For instance, according to information made available by Ookla, internet users in Saudi Arabia were projected to attain the following connection speeds at the beginning of this year: the average fixed internet connection speed was 80.39 Mbps, and the average mobile internet connection speed over cellular networks was 91.06 Mbps.
- The regional market's social media platforms built their massive audiences on the promise of connecting people with their friends and family, meeting new people, and strengthening relationships. These platforms enable online purchases where a user鈥檚 cash can be jointly spent with a friend on social media, and they no longer require a request for an account number, which is a revolution in digital payments and driving market growth.
Egypt to Drive Market Growth
- Egypt, a country commonly known for government employees collecting cash payments for utility bills, such as gas and electricity, is gradually shifting toward more digital transactions. This is spurred by the strategy set up by the North African Central Bank to ensure all citizens of the country focus on digital payments and mobile wallets by having access to financial services. For instance, the payment systems and business technology industry reported to the Central Bank of Egypt (CBE) that the number of e-payment cards issued by banks in Egypt rose to 62 million as of September 2023, up from 52 million in December 2022.
- The increased adoption of digital payment methods by numerous businesses and customers in the region is anticipated as their popularity continues to rise. Therefore, the area needs real-time infrastructure to support these payments and make them efficient. For instance, in April 2024, Mashreq Egypt, in partnership with Visa, announced the launch of the Mashreq NEO Visa Card to enhance banking experiences for Egyptian citizens. The Mashreq NEO Visa Card represents a fusion of cutting-edge technology, seamless banking services, and exclusive benefits tailored to meet the evolving needs of consumers.
- The country has witnessed a progressive change in its legislative systems, such as the promulgation of a regulatory framework within the new Central Bank Law and the executive regulations of the E-Payment Law, to keep up with the global changes in the digital payment and banking industries.
- Additionally, the Egyptian government announced plans to make its New Administrative Capital a cashless city starting in February 2023. In order to implement this, the nation is presently in talks with Mastercard, a leading provider of global payment systems. Mastercard plans to invest in the payment and collection infrastructure of Egypt's government. By 2024, more than half of Egypt's population is expected to subscribe to mobile internet services, and by 2025, there will be about 700 million mobile connections.
- Additionally, quick payment systems provide both consumers and organizations with several advantages. Mobile apps that enable users to send money to recipients specified by their mobile phone numbers rather than their bank account data are frequently used to access such payment systems. Customers who want quick, straightforward ways to shop online and those who use their mobile devices to pay for friends or brick-and-mortar merchants can benefit from such services. These methods allow customers to avoid carrying cash or credit cards.
MENA Digital Payments Industry Overview
The Middle East and North African digital payments market is moderately concentrated and dominated by a few major players like Paypal Holdings Inc., Alphabet Inc., ACI Worldwide Inc., Samsung Electronics Inc., and CIB Bank. These significant firms, holding a sizable market share, are concentrating on growing their international consumer base. These businesses are utilizing strategic collaboration projects to expand their market share and profitability. Mid-size and smaller businesses are, however, expanding their market presence by gaining new contracts and tapping into new markets due to technical improvements and product innovations.
- May 2024: Access Bank Group, a multinational bank, partnered with payments giant Mastercard to introduce an innovative solution. This collaboration aims to enhance access to cross-border payments and remittances involving the African continent. Leveraging the Mastercard Move Partner Programme's network and treasury capabilities, which is a global community of technology innovators focused on digital payments, Access Bank's initiative, Access Africa, seeks to provide individuals and businesses with instant, traceable, seamless, and cost-effective international transactions.
- January 2024: Paymob, a financial services enabler operating in the Middle East, North Africa, and Pakistan (MENA-P), partnered with Mastercard to boost digital payment acceptance in MENA countries. This strategic collaboration capitalizes on Paymob's robust payments infrastructure and Mastercard's cutting-edge technology. Together, they aim to promote affordable solutions for micro, small, and medium-sized enterprises (MSMEs) in pivotal markets. The partnership's highlights include accelerating the adoption of Tap on Phone, enhancing the e-commerce gateway, and introducing payment link solutions.
MENA Digital Payments Market Leaders
-
Paypal Holdings Inc.
-
Samsung Corporation
-
ACI Worldwide Inc.
-
CIB Bank鈥�
-
Alphabet Inc. (Google Pay)鈥�
*Disclaimer: Major Players sorted in no particular order
MENA Digital Payments Market News
- May 2024: Nium revealed a strategic collaboration with Emirates NBD, a prominent banking group in the MEANT market, which encompasses the Middle East, North Africa, and T眉rkiye. The partnership aims to introduce an innovative global payment solution poised to reshape the financial services industry in the Middle East and beyond.
- May 2024: At the Visa Payments Forum for Central and Eastern Europe, the Middle East, and Africa, Visa unveiled a suite of new products and services set to revolutionize the card landscape. The company is rolling out an innovative portfolio, emphasizing digital identity, streamlined checkout experiences, flexible payments, enhanced micro-merchant acceptance, and bolstered security for account-to-account transactions. Furthermore, Visa introduced 'Visa Pay,' a cutting-edge payments-as-a-service platform. This platform is designed to offer top-tier mobile-first payment experiences and seamless send-and-receive capabilities tailored specifically for Central and Eastern Europe, Middle East, and African countries.
Middle East & North Africa Digital Payments Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Intensity of Competitive Rivalry
4.3.5 Threat of Substitutes
4.4 Market Drivers
4.4.1 High Proliferation of Smartphones & Social Interactions
4.4.2 Enablement Programs by Key Retailers to Bridge the Gap Between Physical and Digital Worlds
4.4.3 Launch of Real-time Payment Systems in Key GCC and North African Countries
4.4.4 Increasing Emphasis on Customer Satisfaction and Convergence of Global Trends in the Region
4.5 Market Challenges
4.5.1 Operational Challenges Involving Cross-border Payments
4.5.2 Relative Lack of Digital Literacy in the Key Emerging Countries in the Region
4.6 Market Opportunities
4.6.1 Decline in Unbanked Population in the Region
4.6.2 New Entrants to Drive Innovation Leading to Higher Adoption
4.7 Key Regulations and Standards in the Digital Payments Industry
4.8 Assessment of Macroeconomic Factors on the Market
4.9 Key Base indicators
4.9.1 Digital Literacy
4.9.2 Population Index
4.9.3 Strong Presence of Expatriate Workers
4.10 Major Case Studies and Implementation Use-cases
4.10.1 Entries of Kuwait Finance House and Mashreq Bank
4.10.2 Dhofar's Entry into the Digital Payment Ecosystem
5. EVOLUTION OF THE PAYMENTS LANDSCAPE IN MIDDLE EAST AND NORTH AFRICA
6. MARKET SEGMENTATION
6.1 By Country
6.1.1 Saudi Arabia
6.1.1.1 Analysis of the Payments Landscape in Saudi Arabia (Cash and Non-cash)
6.1.1.2 Digital Transactions Value and Total User Base (2019-2029)
6.1.1.3 Market Breakdown of Digital Transactions - mPOS and Digital Commerce
6.1.1.4 Major E-wallet Service Providers in Saudi Arabia (BayanPay, HalalaH, STC, etc.)
6.1.1.5 Market Outlook
6.1.2 Egypt
6.1.2.1 Analysis of the Payments Landscape in Egypt (Cash and Non-cash)
6.1.2.2 Digital Transactions Value and Total User Base (2019-2029)
6.1.2.3 Market Breakdown of Digital Transactions - mPOS and Digital Commerce
6.1.2.4 Major E-wallet Service Providers in Egypt - (QNB Al-Ahli, CIB, UB, Audi2Pay, etc.)
6.1.2.5 Market Outlook
6.1.3 United Arab Emirates
6.1.3.1 Analysis of the Payments landscape in the United Arab Emirates (Cash and Non-cash)
6.1.3.2 Digital Transactions Value and Total User Base (2019-2029)
6.1.3.3 Market Breakdown of Digital Transactions - mPOS and Digital Commerce
6.1.3.4 Major E-wallet Service Providers in UAE- (Beam, Etisalat Wallet, Emirates Digital Wallet, Trriple, Bridg, Samsung Pay, and WePay)
6.1.3.5 Market Outlook
6.1.4 Turkey
6.1.4.1 Analysis of the Payments Landscape in Turkey (Cash and Non-cash)
6.1.4.2 Digital Transactions Value and Total User Base (2019-2029)
6.1.4.3 Market Breakdown of Digital Transactions - mPos and Digital Commerce
6.1.4.4 Major E-wallet Service Providers in Turkey - (BKM Express, MobileExpress, Pay Cell, etc.)
6.1.4.5 Market Outlook
6.1.5 Morocco
6.1.5.1 Analysis of the Payments Landscape in Morocco (Cash and Non-cash)
6.1.5.2 Digital Transaction Value and Total User Base (2019-2029)
6.1.5.3 Market Breakdown of Digital Transactions - mPos and Digital Commerce
6.1.5.4 Major E-wallet Service Providers in Morocco
6.1.5.5 Market Outlook
6.1.6 Rest of Middle East and North Africa (Iran, Bahrain, Qatar, Oman)
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Paypal Holdings Inc.
7.1.2 Samsung Corporation
7.1.3 ACI Worldwide Inc.
7.1.4 CIB Bank
7.1.5 Alphabet Inc. (Google Pay)
7.1.6 Apple Inc.
7.1.7 First Data
7.1.8 Fawry
7.1.9 Mastercard (MasterPass)
7.1.10 ACI Worldwide
7.1.11 Saudi Digital Payment Company
7.1.12 Denarii Cash
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
MENA Digital Payments Industry Segmentation
Digital payments are a method of payment made through digital means. In digital payments, the payer and payee both use digital means to send and receive money. They are also called electronic payments. No hard cash is involved in digital payments.
The Middle East and North African digital payments market is segmented by country (Saudi Arabia, Egypt, United Arab Emirates, Turkey, Morocco, and Rest of the Middle East and North Africa (Iran, Bahrain, Qatar, Oman)). The scope of the study covers an analysis of the payments landscape, digital transaction value and total user base, market breakdown of digital transactions - MPOS and digital commerce, and major e-wallet service providers. The market sizes and forecasts are provided in value terms (USD) for all the above segments.
| By Country | |||||||
| |||||||
| |||||||
| |||||||
| |||||||
| |||||||
| Rest of Middle East and North Africa (Iran, Bahrain, Qatar, Oman) |
Middle East & North Africa Digital Payments Market Research FAQs
How big is the MENA Digital Payments Market?
The MENA Digital Payments Market size is expected to reach USD 226.53 billion in 2024 and grow at a CAGR of 10.95% to reach USD 380.86 billion by 2029.
What is the current MENA Digital Payments Market size?
In 2024, the MENA Digital Payments Market size is expected to reach USD 226.53 billion.
Who are the key players in MENA Digital Payments Market?
Paypal Holdings Inc., Samsung Corporation, ACI Worldwide Inc., CIB Bank鈥� and Alphabet Inc. (Google Pay)鈥� are the major companies operating in the MENA Digital Payments Market.
What years does this MENA Digital Payments Market cover, and what was the market size in 2023?
In 2023, the MENA Digital Payments Market size was estimated at USD 201.72 billion. The report covers the MENA Digital Payments Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the MENA Digital Payments Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key challenges faced by the MENA Digital Payments Market?
Major challenges faced by the MENA Digital Payments Industry are a) Cybersecurity threats b) Regulatory compliance c) Need for financial literacy
What are the key challenges faced by the MENA Digital Payments Market?
Major challenges faced by the MENA Digital Payments Industry are a) Cybersecurity threats b) Regulatory compliance c) Need for financial literacy
Middle East & North Africa Card Payments Industry Report
The Middle East and North Africa (MENA) digital payments industry is witnessing substantial growth, propelled by the integration of advanced technologies such as AI, biometrics, and digital ledger technology. This expansion is evident across various segments including mobile payments, online transactions, and point-of-sale solutions, driven by the widespread adoption of smartphones and a shift towards cashless transactions. The industry benefits from a diverse range of offerings, deployment models, organization sizes, payment modes, and end-users, serving both the commercial and consumer sectors. Regulatory frameworks and government initiatives promoting digitalization further fuel this growth, alongside the rising popularity of mobile banking and mobile wallets, which enhance transaction convenience and security. The sector is set to expand further, due to the growing focus on open banking APIs and efforts by e-commerce firms to incorporate sophisticated payment systems. For detailed insights, 糖心vlog传媒鈩� provides an in-depth analysis of the MENA card payments market, including market share, size, revenue growth rate, and a forecast outlook. Stakeholders can download a free report PDF sample from the 糖心vlog传媒鈩� Industry Reports for a comprehensive historical and forecasted overview of the Middle East and North Africa digital payments industry.
