Saudi card payments market likely to hit SAR 532bn in 2023 – GlobalData

Riyadh – Mubasher: The card payments market in Saudi Arabia is projected to grow by 14.60% in 2023 and reach SAR 532.10 billion, equivalent to $141.90 billion, according to data and analytics company GlobalData.

The foreseen growth will be driven by increasing preference for e-payments in addition to a rise in contactless payments and the government’s push for a cashless society.

Meanwhile, the card payment value in the Kingdom soared by 29.80% in 2021 and 17.30% in 2022, on the back of improving economic conditions and higher consumer spending.

Lead Banking and Payments Analyst at GlobalData, Ravi Sharma, said: “While cash has traditionally been the preferred method of payment in Saudi Arabia, its usage is on decline in line with the rising consumer preference for electronic payments. This trend became more prevalent during COVID-19 pandemic, with banks and merchants urging consumers to use non-cash payment methods to help contain the spread of the virus.”

Sharma concluded: “The increasing preference for contactless payments and mandatory acceptance of electronic payments at retail stores are among the key drivers of the payment card market growth.”

The Saudi card payments market, meanwhile, would grow at a strong compound annual growth rate (CAGR) of 10.20% between 2023 and 2027, with forecasts to hit SAR 785.80 billion that is equivalent to $209.50 billion in 2027, the analyst noted.

The government of Saudi Arabia aims to reduce the Kingdom’s dependence on cash, besides promoting electronic payments and encouraging payment innovation. It further works on increasing the share of e-payments to 70% of all transactions by 2025 based on Vision 2030.

As for card preference, debit cards represented 89% of the overall Saudi card payment value in 2022, as seen by GlobalData.

Mubasher Contribution Time: 04-Jun-2023 14:47 (GMT)
Mubasher Last Update Time: 04-Jun-2023 14:47 (GMT)