1. Market Research
  2. > Financial Services
  3. > Banking
  4. > Payments Market Trends
Payments Landscape in Saudi Arabia: Opportunities and Risks to 2021

Payments Landscape in Saudi Arabia: Opportunities and Risks to 2021

  • March 2018
  • 49 pages
  • ID: 5385728
  • Format: PDF
  • By GlobalData

Summary

Table of Contents

Search Inside

Payments Landscape in Saudi Arabia: Opportunities and Risks to 2021

Summary
In Saudi Arabia cash remains the preferred method of consumer payment, accounting for more than 90% of the total payment transaction volume.While high-value transactions are shifting to electronic platforms, low-value transactions are mostly carried out with cash.

Although the use of payment cards, primarily debit cards, is gradually rising, they are mostly used for cash withdrawals at ATMs rather than making payments at merchant outlets.

The government, however, has been taking several initiatives to promote electronic payments, one such being the introduction of the Wage Protection System regulation in September 2013.While debit cards remain the dominant payment card type, the use of credit cards remains low in Saudi Arabia for religious reasons, as Islam forbids interest.

To encourage credit card use, banks are now offering Sharia-compliant credit cards in addition to regular credit cards. The gradual adoption of contactless technology, and the emergence of the e-commerce market - supported by the availability of several alternative payment methods - is likely to drive the payment card market throughout the forecast period.

To further boost electronic payments, SAMA launched a contactless payment service called Mada Atheer in November 2016, allowing Mada card holders to conduct low-value transactions by waving their card at POS terminals.In February 2018, SAMA announced its plan to extend the contactless functionality to smart devices.

Consequently, in March 2018 Riyad Bank partnered with payment technology provider Gemalto to launch Saudi Arabia’s first contactless payment wristband.

The growth potential in the e-commerce market has encouraged investors to set up new online platforms. In November 2016 a group of investors from the UAE, led by businessman Mohamed Alabbar and Saudi Arabia’s Public Investment Fund, collectively announced the launch of Noon.com, one of the largest e-commerce platforms in the Arab world offering 20 million products. The platform was officially launched in December 2017. The rise in e-commerce transactions is further expected to drive electronic payments in the country.

The report "Payments Landscape in Saudi Arabia: Opportunities and Risks to 2021", provides top-level market analysis, information and insights into the Saudi Arabian cards and payments industry.

In depth, this report provides the following -
- Current and forecast values for each market in the Saudi Arabian cards and payments industry, including debit, credit, and charge cards.
- Detailed insights into payment instruments including cash, payment cards, credit transfers, cheques, and direct debit. It also, includes an overview of the country’s key alternative payment instrument.
- E-commerce market analysis.
- Analysis of various market drivers and regulations governing the Saudi Arabian cards and payments industry.
- Detailed analysis of strategies adopted by banks and other institutions to market debit, credit, and charge cards.

Companies mentioned in this report: Al Rajhi Bank, The National Commercial Bank, Riyad Bank, Arab National Bank, Saudi British Bank, Samba Financial Group, Banque Saudi Fransi, Bank AlJazira, Alawwal Bank, Mada, Visa, Mastercard, and American Express

Scope
- The gradual adoption of contactless payments is fostering the use of payment cards at the POS.Riyad Bank launched the country’s first contactless card in September 2015, transforming its entire card portfolio to contactless technology.

In addition, in April 2016 National Commercial Bank (NCB) transferred its entire credit card portfolio to contactless technology.To further boost electronic payments, SAMA launched a contactless payment service called Mada Atheer in November 2016, allowing Mada card holders to conduct low-value transactions by waving their card at POS terminals.

In February 2018, SAMA announced its plan to extend the contactless functionality to smart devices. Consequently, in March 2018 Riyad Bank partnered with payment technology provider Gemalto to launch Saudi Arabia’s first contactless payment wristband.
- To provide convenient payments for online transactions, in April 2016 SAMA introduced an e-payment service called the SADAD Account, providing a direct link between bank accounts and online merchants. The service enables consumers to facilitate online payments by directly debiting their SADAD Account and transferring the amount to the merchant’s account. Upon opening a SADAD Account with a participating bank, consumers are provided with a username and password that can be used when shopping at member stores. Banks including NCB, Samba Financial Group, Riyad Bank, Saudi British Bank, AlJazira Bank, Al Rajhi Bank, Arab National Bank, Saudi Investment Bank, and Banque Saudi Fransi currently offer the service.
- The growth potential in the e-commerce market has encouraged investors to set up new online platforms. In November 2016 a group of investors from the UAE, led by businessman Mohamed Alabbar and Saudi Arabia’s Public Investment Fund, collectively announced the launch of Noon.com, one of the largest e-commerce platforms in the Arab world offering 20 million products. The platform was officially launched in December 2017. The rise in e-commerce transactions is expected to drive electronic payments in the country.

Reasons to buy
- Make strategic business decisions, using top-level historic and forecast market data, related to the Saudi Arabian cards and payments industry and each market within it.
- Understand the key market trends and growth opportunities in the Saudi Arabian cards and payments industry.
- Assess the competitive dynamics in the Saudi Arabian cards and payments industry.
- Gain insights into marketing strategies used for various card types in Saudi Arabia.
- Gain insights into key regulations governing the Saudi Arabian cards and payments industry.

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 150+ Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
25% Off

($2750)

  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.
Ahmad helps you find the right report:
Testimonials

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at
Ikea

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at
Ingredion

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

FAQ
  • How we can help
    • I am not sure if the report I am interested in will fulfill my needs. Can you help me?
    • Yes, of course. You can call us at +33(0) 4 37 65 17 03 or drop us an email at researchadvisor@reportlinker.com to let us know more about your requirements.
    • We buy reports often - can ReportLinker get me any benefits?
    • Yes. Set up a call with a Senior Research Advisor to learn more - researchadvisor@reportlinker.com or +33(0) 4 37 65 17 03.
    • I have had negative experiences with market research reports before. How can you avoid this from happening again?
    • We advise all clients to read the TOC and Summary and list your questions so that we can get more insight for you before you make any purchase decision. A research advisor will accompany you so that you can compare samples and reports from different sources, and choose the study that is right for you.

  • Report Delivery
    • How and when I will receive my Report?
    • Most reports are delivered right away in a pdf format, while others are accessed via a secure link and access codes. Do note that sometimes reports are sent within a 12 hour period, depending on the time zones. However, you can contact us to escalate this. Should you need a hard copy, you can check if this option is offered for the particular report, and pay the related fees.
  • Payment conditions
    • What payment methods do you accept?
      1. Credit card : VISA, American Express, Mastercard, or
      2. You can download an invoice to pay by wire transfer, check, or via a Purchase Order from your company, or
      3. You can pay via a Check made out in US Dollars, Euros, or British Pounds for the full amount made payable to ReportLinker
    • What are ReportLinker’s Payment Terms?
    • All payments must normally be submitted within 30 days. However, you can let us know if you need extended time.
    • Are Taxes and duties included?
    • All companies based in France must pay a 20% tax per report. The same applies to all individuals based in the EU. All EU companies must supply their VAT number when purchasing to avoid this charge.
    • I’m not satisfied. Can I be refunded?
    • No. Once your order has been processed and the publisher has received a notification to send you the report, we cannot issue any refund or cancel any order. As these are not ‘traditional’ products that can be returned, reports that are dispatched are considered to be ‘consumed’.
  • User license
    • The license that you should acquire depends on the number of persons that need to access the report. This can range from Single User (only one person will have the right to read or access the report), or Department License (up to 5 persons), to Site License (a group of persons based in the same company location), or Corporate License (the entire company personnel based worldwide). However, as publishers have different terms and conditions, we can look into this for you.
Purchase Reports From Reputable Market Research Publishers
Pakistan Cards & Payments: Opportunities and Risks to 2023

Pakistan Cards & Payments: Opportunities and Risks to 2023

  • $ 2750
  • October 2019

Pakistan Cards & Payments: Opportunities and Risks to 2023SummaryPakistan is a cash-dominated society.Use of cash for day-to-day transactions remains prevalent among Pakistanis due to factors such as a ...

US Cards and Payments: Opportunities and Risks to 2023 (including Banking and Payments Survey Insights)

US Cards and Payments: Opportunities and Risks to 2023 (including Banking and Payments Survey Insights)

  • $ 2750
  • September 2019

US Cards and Payments: Opportunities and Risks to 2023 (including Banking and Payments Survey Insights)Summary’US Cards & Payments: Opportunities and Risks to 2023’ report provides detailed analysis ...

Italy Cards & Payments: Opportunities and Risks to 2023

Italy Cards & Payments: Opportunities and Risks to 2023

  • $ 2750
  • November 2019

Italy Cards & Payments: Opportunities and Risks to 2023Summary’Italy Cards & Payments: Opportunities and Risks to 2023’ report provides detailed analysis of market trends in the Italian cards and payments ...


ref:plp2018

Reportlinker.com © Copyright 2019. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.

Make sure you don’t miss any news and follow us on