Press Release

Saudi Arabia Payment Gateway Market to be Dominated by Retail Through 2028

The increasing adoption of digital payments and the growth of e-commerce are driving the payment gateway market in Saudi Arabia.

According to the TechSci Research report, “Payment Gateway Market – Saudi Arabia Industry Size, Share, Trends, Opportunity, and Forecast, 2028,” the Saudi Arabia payment gateway market is anticipated to register robust growth during the forecast period, 2024-2028. A payment gateway acts as a go-between for the e-commerce site and the bank. Online payment encrypts sensitive information and is used for online transaction authentication. It is also used to prevent fraud by providing the card verification value (CVV) and the address verification system (AVS). Furthermore, the popularity of digital payment modes, such as credit/debit cards, net banking, and mobile wallets, and an increasing number of customers using smartphones for online transactions is propelling the global payment gateway market.

Furthermore, e-commerce sites collaborating with various payment gateways are offering cashback to retain and attract new customers. Consumer payment behavior changes have been a major driver of growth in the payment gateway market. The rapid growth of e-commerce, as well as the growing popularity of mobile and online shopping, has increased demand for payment gateways, which allow for secure and efficient online payments. Consumers are increasingly comfortable shopping online and using digital payment methods, leading to a shift away from traditional payment methods, such as cash and checks.

Payment gateways have evolved into an essential component of the e-commerce ecosystem, enabling businesses to accept a diverse range of payment methods while also providing secure payment processing and fraud prevention services. In addition to e-commerce, payment gateways are also used in a few other sectors, such as healthcare, transportation, and entertainment, as companies look to provide their customers with simple and secure payment options. The payment gateway market is anticipated to expand overall as more companies and consumers adopt digital payment methods and as payment gateway providers continue to develop new products and enhance existing ones to meet the changing demands of their clients.

Browse over 30 market data Figures spread through 70 Pages and an in-depth TOC on the Saudi Arabia Payment Gateway Market

 

The Saudi Arabia payment gateway market is segmented by type, enterprise size, end users, regional distribution, and competitional landscape. Based on type, the market is further bifurcated into hosted, bank integrated, and self-hosted. Because of the benefits provided by the hosted payment method, the hosted segment generated the largest revenue share of the market and is expected to dominate the market segment in the forecast years. High security reduces the merchant's liability, and advanced payment setups are advantages that help the market segment grow faster than the other sub-segments.

The method is more popular among merchants because it provides security and integrity during the payment process and reduces fraudulent activities, allowing merchants to focus on their services rather than the payment process. The non-hosted method is expected to grow at the fastest CAGR due to concerns from certain small-scale merchants who prefer to keep their servers that prefer hold of complete checkout processes and avoid any kind of redirection of the consumers with a reason for maintaining their brand value and to provide a personalized experience to their consumers.

Saudi Arabia, as a part of its Vision 2030 plan, has been making significant investments toward Industry 4.0, also known as the Fourth Industrial Revolution. Industry 4.0 refers to the integration of advanced technologies, such as artificial intelligence (AI), the Internet of Things (IoT), big data analytics, and automation, into industrial processes to drive efficiency, productivity, and innovation. The Saudi government recognizes the potential of Industry 4.0 in transforming its economy and has been actively promoting its adoption across various sectors.

Another area of investment is in digital transformation and innovation. The Saudi government has been actively promoting the adoption of digital technologies across various sectors, including healthcare, education, transportation, and finance, to enhance service delivery, streamline processes, and improve the overall quality of life. This includes initiatives such as the National Transformation Program (NTP) and the establishment of the Saudi Data and Artificial Intelligence Authority (SDAIA), which are aimed at developing digital infrastructure, fostering innovation, and supporting startups and entrepreneurs in the field of Industry 4.0 technologies.

Key market players in the Saudi Arabia payment gateway market:

  • PayPal Holdings, Inc.
  • Moyasar Financial Company
  • Vapulus - Kingdom of Saudi Arabia
  • Amazon Payments, Inc.
  • GoDaddy Payments
  • Stripe, Inc.
  • CCAvenue
  • 2Checkout.com, Inc.
  • PayTabs
  • Telr

 

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“With recent endeavors for 6G technology to be introduced and already started research and studies by various countries are opening wider scope for the advanced payment methods for the consumers. Saudi Arabia is anticipated to dominate the future market due to going on consistent studies on 6G network connection,” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.

Saudi Arabia Payment Gateway Market By Type (Hosted, Bank Integrated, and Self-hosted), By Enterprise Size (Large Enterprise and Small and Medium Enterprise (SME)), By End User (Travel & Hospitality, Retail, Healthcare, Education, Government, Utilities, and Others), By Region, Competition, Forecast, and Opportunities, 2028 has evaluated the future growth potential of Saudi Arabia payment gateways market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Saudi Arabia payment gateways market.

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