Saudi
Arabia Mobile Wallet Market is anticipated to grow at a rapid pace during the
forecast period, 2024-2028. Saudi Arabia has seen an ongoing development in
mobile payment technologies. This trend is anticipated to continue growing
during the projected time due to shifting consumer lifestyles, the widespread
usage of smartphones, and the expansion of e-Commerce. A mobile wallet is an
e-commerce platform designed specifically for use with mobile devices that
provide convenience and simple access. It offers service for every single
normal task involving an internet transaction. A mobile wallet provides many
features, including online bank account transactions and debit and credit card
transactions. The platform for mobile wallet businesses to enter the Saudi
Arabian market has been substantially facilitated by the rise in tablet and
smartphone users.
In
Saudi Arabia, there are now more than 40.20 million mobile phone subscriptions,
or 116% of the country's entire population. Government support for Fintech initiatives
in Saudi Arabia also contributes to the market's expansion. The adoption of
mobile wallets is hampered, nevertheless, by security issues. Due to their
susceptibility to well-known attacks and vulnerabilities, mobile devices are
prime targets for scammers and hackers. Additionally, Saudi Arabia is the
largest and fastest-growing market in the GCC and is experiencing a surge in
e-commerce. The Kingdom has been collaborating with several government
departments to streamline the licensing procedures and lower requirements, and
good effects can be observed from it for conducting business operations, which
is projected to further fuel the market expansion.
Saudi
Payments has evolved into a catalyst that is transforming the area into an
innovator as it quickly constructs a solid national payment infrastructure to
integrate the Kingdom's digital payment systems. Non-cash payments account
for more than 36% of consumer payments and 44% of all payment forms, by volume,
in Saudi Arabia, as of June 2019.
A
mobile wallet is a digital wallet that stores payment card information on a
mobile device. Mobile wallets are a convenient way for a user to make in-store
payments and can be used at merchants listed with the mobile wallet service
provider. Mobile wallets are safe apps for storing financial instruments and
other documents such as credit cards, bank information, and even driver's
licenses.
Rapid
Adoption Of Technological Breakthroughs By Financial Institutions
Mobile
wallets are being used by businesses more frequently for online payments. The
need for online transactions is growing, which has increased the need for
mobile wallets and made it possible to provide customers with personalised
services while also making transactions safer. Globally, the financial services
sector is integrating artificial intelligence more and more. FinTech platforms
are incorporating AI to save costs for banks and other financial organisations.
Consumers gain from open banking in many ways, such as the ability to exchange
information with third-party budgeting apps and use money-management tools,
which enables tiny financial institutions who cannot afford to provide these
services to do so via third parties. These are boosting the Saud Arabia Mobile
Wallet Market.
Government
Funding for Development Projects in Saudi Arabia
Saudi
Arabia's Vision 2030 has a digitally transformed economy as one of its main
tenets. The Saudi Arabian Monetary Authority (SAMA) is in charge of a number of
initiatives that attempt to realise the Kingdom's vision of a cashless society
and foster financial innovation. Government reforms under the Financial
Sector Development Program (FSDP) are targeting 70% non-cash payments for the
future to build a cash-less economy, by 2030. One of these initiatives is the
facilitation of digital payments in Saudi Arabia. In Saudi Arabia, BayanPay
recently began operating a digital wallet company. This is one of three
licences that were recently granted. The business, which operates digital
wallets and an e-commerce platform to enable transactions between enterprises,
between businesses and consumers, and between businesses and the government, is
a participant in SAMA's digital sandbox. This is also anticipated to fuel Saudi
Arabia's market for mobile wallets.
Rise
in Adoption of Smartphones in Saudi Arabia:
In
Saudi Arabia, there are now more than 40.20 million mobile phone subscriptions.
An estimated 32.23 million of these people utilise mobile internet.
Additionally, Saudi Arabia's 93% internet penetration in January 2020 created a
favourable market climate for the growth of mobile wallets in the nation. The
user base for mobile wallets is anticipated to grow significantly in the
prediction period as more smartphones join the market and data plan prices
continue to decline. With technological advancements, mobile users can now use
smartphones to conduct financial transactions or make payments using phone's
built-in applications. When smartphones can function as leather wallets, this
is referred to as a "Digital Wallet," or "Mobile Wallet. “ Saudi
Arabia has established itself as a favorable environment for smartphone use
because of its young, technologically savvy population and a growing number of
emigrant workers eager to maintain network connectivity around the globe.
Therefore, the market for mobile wallet is anticipated to grow at a rapid rate
during the forecast period as it has capacity to offer quick and secure online
bill payments as well as other money transfer services. Mobile wallets have a
convenient user interface, which enables consumers to receive and send regular
payments whenever they want. Mobile wallets are becoming more and more popular
with consumers.
A
Shift in Consumer Preferences in Favour of Digital Payment Methods
A
key factor expected to drive the demand for mobile wallets is the user-friendly
interface that fosters transaction simplicity. The market for mobile wallets is
being driven by the advancement of digitization and consumers' growing
preference for making payments online. Moreover, the banking industry has seen
substantial changes as a result of technological improvements. Financial
transactions that traditionally needed traditional banking services—such as
money transfers, bill payments, insurance premium payments, mortgage
applications, and even stock trading—are increasingly being done
electronically. Despite the increasing use of smartphones and the advantages of
mobile banking, mobile app adoption rates have been incredibly low. FinTech
businesses are working to make mobile payments more user-friendly so that they
can provide clients with a smooth experience as they search for quick and
convenient payment options. Mobile payments have become more popular as a
result of urbanization, since more businesses are choosing cashless payment
options. Financial institutions are working with FinTech companies to implement
new technology to improve operations and customer service in order to meet the
growing demand for cutting-edge payment solutions. The demand for mobile
wallets has increased in Saudi Arabia due to these ongoing advances. Moreover,
as the Generation Z population in Saudi Arabia grows to 23%, the expansion
of mobile payments will be crucial. Higher transaction speeds, more
convenient user interfaces, and multichannel experiences will be demanded by
this post-millennial cohort.
Emergence
Of a Cashless Economy
Saudi
Arabia is making an effort to move towards a cashless economy. With the
development of technology, customers and companies are embracing contactless
payment methods, such as mobile wallets, which are regarded as handy, quick,
and cost-effective modes of exchange. Amazon Payment Services highlighted that
2021 was the first year that electronic payments eclipsed cash transactions in
the Kingdom to represent 62% of payments across all sectors. This is
anticipated to fundamentally alter the payments environment, in an effort to
advance a cashless society through a number of clever government initiatives.
Mobile payment and digital wallet systems like Apple Pay, Alphabet Inc. (Google
Pay), and Samsung Pay have become the go-to payment options as e-commerce and
online transactions have increased. Therefore, the market will expand as a
result of the trend towards a cashless economy.
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Market
Segmentation
The
Saudi Arabia Mobile Wallet Market is divided into Type, Technology, Ownership
and Application. Based on Type, the market is divided into Semi-Closed, Open,
and Closed. Based on technology, the market is segmented into Quick Response
(QR) Codes, Near Field Communication (NFC), Magnetic Secure Transmission (MST),
and Others. Based on ownership, the market is segmented into Telecom Operators,
Device Manufacturers, Tech Companies, and Banks. Based on application, the
market is segmented into Entertainment & Travel, Bill Payments, Food & Drinks,
Groceries, Peer-to-Peer Transfer, and Others.
Market
Players
Major
market players in the Saudi Arabia Mobile Wallet Market are Samsung Electronics
Co Ltd (Samsung Pay), Alphabet Inc (Google LLC), PayPal Holdings, Inc, Apple
Inc, Saudi Digital Payment Company, Saudi Central Bank, mada Pay, STC Pay,
BayanPay, Noon Pay, Alinma Pay
Recent
Development
Growth
in the number of NFC-enabled PoS terminals, 2017–2019 is 303.5 thousand to
438.6 thousand.
|
Attribute
|
Details
|
|
Base Year
|
2022
|
|
Historic Data
|
2018 –
2022
|
|
Estimated Year
|
2023
|
|
Forecast Period
|
2024
– 2028
|
|
Quantitative Units
|
Revenue in USD Million, and CAGR for 2018-2022 and 2024-2028
|
|
Report coverage
|
Revenue
forecast, company share, growth factors, and trends
|
|
Segments covered
|
Type
Technology
Ownership
Application
Region
|
|
Regional scope
|
Eastern
Region, Northern & Central Region, Western
Region, Southern Region
|
|
Key companies profiled
|
Samsung Electronics Co
Ltd (Samsung Pay), Alphabet Inc (Google LLC), PayPal Holdings, Inc, Apple
Inc, Saudi Digital Payment Company, Saudi Central Bank, mada Pay, STC Pay,
BayanPay, Noon Pay, Alinma Pay.
|
|
Customization scope
|
10%
free report customization with purchase. Addition or alteration to country,
regional & segment scope.
|
|
Pricing and purchase options
|
Avail customized purchase options to meet your exact research
needs. Explore purchase options
|
|
Delivery Format
|
PDF and Excel
through Email (We can also provide the editable version of the report in
PPT/Word format on special request)
|
Report
Scope:
In this report,
the Saudi Arabia Mobile Wallet Market has been segmented into following
categories, in addition to the industry trends which have also been detailed
below:
- Saudi Arabia Mobile Wallet
Market, By Type:
o Semi-Closed
o Open
o Closed
- Saudi Arabia Mobile Wallet Market, By
Technology:
o Quick Response (QR) Codes
o Near Field Communication (NFC)
o Magnetic Secure Transmission (MST)
o Others
- Saudi Arabia Mobile Wallet
Market, By Ownership:
o
Telecom
Operators
o
Device
Manufacturers
o
Tech
Companies
o
Banks
- Saudi Arabia Mobile Wallet Market,
By Application:
o
Entertainment
& Travel
o
Bill
Payments
o
Food
& Drinks
o
Groceries
o
Peer-to-Peer
Transfer
o
Others
- Saudi Arabia Mobile Wallet Market,
By Region:
o
Eastern
Region
o
Northern
& Central Region
o
Western
Region
o
Southern
Region
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies present in the Saudi Arabia Mobile Wallet
Market.
Available
Customizations:
With the given
market data, TechSci Research offers customizations according to a company's
specific needs. The following customization options are available for the
report:
Company
Information
- Detailed analysis and profiling of
additional market players (up to five).
Saudi Arabia
Mobile Wallet Market is an upcoming report to be released soon. If you wish an
early delivery of this report or want to confirm the date of release, please
contact us at
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