Introduction of the Middle East Digital Payment Market Report

Digital payment refers to the payment method are conducted through the internet and mobile channels. For the digital payment to take place, the sender of the payment must have a bank account, an online banking payment method, a device to make a payment from, and a medium for transmission, meaning that the individual has signed up to a provider. This type of payment is easy to make, more convenient and offers flexibility to customers to make the payment from anytime and anywhere.

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Market Dynamic

Key Drivers and Emerging Trends

The Middle East Digital Payment market is becoming more mainstream thanks to the increasing proliferation of smartphones, which is enabling mCommerce growth and the growing penetration of the internet. The major countries in the Middle East region are increasingly implementing ICT technologies to support digital economies. The UAE is witnessing around 78% penetration in smartphones, which is an indicator of the emerging trend in digitalization across the country. Moreover, the Central Bank of the UAE launched the “National Payments Strategy” with an aim to offer better customer experience in local as well as international transactions in order to build safer, better, less costly, and more efficient payment systems.  Additionally, as a part of Vision 2030, the Saudi Arabia government has planned an ambitious objective in the financial industry development to achieve 70% of the non-cash transactions by 2030. The government has also introduced different types of online mobile applications such as STC Pay, which is a digital wallet equipped with all means and options that allow individuals to control their payments on all platforms.

The mobile financial services transformation has been witnessed via different payment methods such as Careem Pay in the UAE. For example, Saudi Arabia’s leading telecommunications organization introduced a digital wallet app, STC Pay, which enables people to send money to other users and pay restaurants and stores through digital mode. Furthermore, the increasing collaboration between banks to support digital payments is another factor that is opening new doors for market growth. In 2020, Oman Air and BankDhofar entered into a partnership to launch an e-commerce payment gateway platform, which allows the airline’s customers to book their sets through their debit cards and receive an instant response of the physical transactions. In addition to this, with the outbreak of COVID-19, there has been an increase in the digital payment mode as individuals now prefer digital payment rather than using cash to avoid the risk of contracting coronavirus.

Restraint in the Middle East Digital Payment Market

However, on the other hand, the lack of standards for cross-border payments is one of the biggest factor that is likely to hamper the market growth in the coming years.

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Mode of Payment – Segment Analysis

Based on the Mode of Payment, the Point of Sale segment is anticipated to dominate the market during the forecast period. The numerous exceptional advantages offered by Point of Sale (POS) such as higher efficiency, easy to use, and improved level of accuracy are attracting the end-users to opt for this mode of payment in the coming years. The POS accepts different type of transactions using contactless payment, EMV chip cards, and mobile wallets such as Samsung Pay, Andriod Pay, and Apple Pay. It also streamlines the accounting process, thus making it easy for merchants to keep a record of transactions.

End-user Industry – Segment Analysis

On the basis of the End-User Industry, the banking and financial service segment is projected to lead the market during the forecast period. This is mainly due to the increasing adoption of electronic payment solutions in the BFSI sector as they provide money transactions. Furthermore, the rising digitalization of banks and financial institutions is surging the growth of the segment over the next few years. The emergence of trends such as mobile banking, digital wallet, and personal fiancé management, are supporting the segment growth. On the other edge, the retail segment is anticipated to witness faster CAGR during the forecast period. The mobile wallet applications are helping the retail merchants to simplify their purchasing process. It also helps in saving consumer’s time at checkout and removes the hassle related to the usage of plastic payment cards. All these factors are energizing the growth of the segment in the market.

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Countries – Segment Analysis:

Based on the country, the UAE is expected to lead the market during the forecast period. The rising penetration of the internet and the growing number of smartphone users in the country are the two major drivers that are responsible for the growth of the market. In 2020, Abu Dhabi Digital Authority (ADDA) launched its digital payment platform, Abu Dhabi Pay through its Government Services ecosystem, TAMM. The Abu Dhabi Pay offers secure and standardised methods of digital payment for all government services across different channels, thus representing a step towards digital sustainability. In addition to this, the growing implementation of digital payment solutions in banking, e-commerce, consumer goods, and government sector is further creating new opportunities for the market growth. 

Key Developments:

• • In 2020, ACI Worldwide entered into a partnership with Arvato Financial Solutions to combat the increasing levels of eCommerce fraud during the COVID-19 pandemic. In this collaboration, ACI will provide Arvato Financial Solutions best-in-class Manual Order Review service to all its merchant fraud customers.
  • In 2020, Matercard collaborated with three local issuing banks in the UAE, including RAK Bank, Mahreq Bank and Emirates NBD, to provide digital wallets powered by Mastercard to cardholders in the UAE.

Segments covered in the Report:

The Middle East Digital Payment Market has been segmented on the basis of Mode of Payment, End-user Industry, and countries. Based on the Mode of Payment, the market is segmented into Point of Sale and Online Sale. Based on End-user Industry, the market is segmented into BFSI, Telecommunication, Retail, Government, Transportation and Others. 

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Key questions answered in this research report:

• • At what pace is Middle East Digital Payment Market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in Middle East Digital Payment Market? What will be the impact of drivers and restraints in the future?
  • Which Mode of Payment generated maximum revenues in 2019 and identify the most promising Mode of Payment during the forecast period?
  • What are the various End-user Industries of Middle East Digital Payment Market and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Report Coverage	Details
Market Base Year	2019
Market Forecast Period	2020-2027
Market Revenues Currency	USD Million
Base Year & Forecast Units	Revenues (USD Million)
Market Segment	By Mode of Payment, By End-user Industry, By Countries
Regional Coverage	Middle East
Companies Profiled	Profiles of Top 10 Major Companies Operating in “Middle East Digital Payment Market”
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

Middle East Digital Payment Market by Mode of Payment

• • Point of Sale
    • Contact Payment
    • Contactless Payment
    • Bank Cards
  • Online Sale
    • Digital Wallets
    • Digital Currencies
    • Net Banking
    • Other Online Sales Channels

Middle East Digital Payment Market by End-user Industry

• • BFSI
  • Telecommunication
  • Retail
  • Transportation
  • Government
  • Others

Middle East Digital Payment by Countries

• • UAE Digital Payment Market All-Up (Option 1: Free 25% Customization)
  • Saudi Arabia Digital Payment Market All-Up (Option 2: Free 25% Customization)
  • Egypt Digital Payment Market All-Up (Option 3: Free 25% Customization)
  • Rest of Middle East Digital Payment Market All-Up (Option 4: Free 25% Customization)