Report Overview

Further deepening of internet and smart and mobile phone penetration and an increasing focus on bring banking to large segments of unbanked and underbanked individuals are expected to boost the growth of Middle East and Africa Digital Wallet Market during the forecast period between 2024 and 2030.

Middle East and Africa Digital Wallet Market - Industry Trends & Forecast Report, 2030

The Middle East and Africa Digital Wallet Market size was estimated to be worth USD 20,526.37 million in 2023. During the forecast period between 2024 and 2030, the Middle East and Africa Digital Wallet Market size is projected to grow at a CAGR of 19.73%, reaching a value of USD 72,381.27 million by 2030. Major growth factors for the Middle East and Africa Digital Wallet Market include the deepening penetration of smartphones and internet and the launch of digital wallets with higher security and encryption for digital payments. Additionally, the growing e-commerce sector and rising integration of advanced features, such as artificial intelligence, in online payment platforms are anticipated to drive the Middle East and Africa Digital Wallet Market during the forecast period.

Digital Wallet – Overview

A digital or electronic wallet is a payment system that operates online, storing both financial values and personal identity information on a mobile device or computer. The digital wallet technology facilitates electronic banking and other financial transactions and enables individuals to purchase through a computer or smartphone from virtual stores. The digital wallet can be connected to an individual's bank account and may also house documents like driver's licenses, loyalty cards, and other identification papers on the phone. Beyond regular financial transactions, these digital wallets are increasingly employed to authenticate the holder's credentials, encompassing software and information components.

Middle East and Africa Digital Wallet Market

Growth Drivers

Governments’ Favorable Policies and Supportive Initiatives

The governments of countries in the Middle East and Africa region are making favorable policies and taking initiatives to boost the adoption of digital wallets among their consumers. The Central Bank of the UAE, for instance, recently launched a 24/7 instant payments system to implement its National Payment Systems Strategy in 2021, to boost real-time online transactions in the country. The Qatar Central Bank also launched an interoperable national mobile payments system that allows locals as well as visitors to create digital wallets and make instant money transfers. This type of public launches increases consumer trust in digital wallets, which in turn propels the growth of the Digital Wallet Market in the Middle East and Africa region.

Challenges

High Risk of Security Breaches and Financial Fraud

A large portion of consumer base in Middle East and Africa lacks confidence in digital wallet owing to the high risk of security and financial fraud. Using digital wallets comes with dangers, such as the potential for password hacking, device breaches, loss, or theft, and the possibility that digital currency is not insured. This might involve tricking people into giving their payment details by using credit card details that have been stolen or by setting up phony digital wallets. Due to concerns about fraud, people are hesitant to completely adopt digital payment methods, which is impeding market growth.

Middle East and Africa Digital Wallet Market

Segmental Coverage

Middle East and Africa Digital Wallet Market – By Type

Based on type, the Middle East and Africa Digital Wallet Market is segmented into closed wallets, semi-closed wallets, and open wallets. The semi-closed digital wallet segment holds the largest share in the Middle East and Africa market, owing to the benefit of both online and offline payments at listed merchants and stores.

Middle East and Africa Digital Wallet Market – By Application

Based on application, the Middle East and Africa Digital Wallet Market is divided into money transfer, recharge, movie booking, food ordering, and other segments. The money transfer segment accounts for the highest market share in the market by application. Digital wallets gained significant traction in the market after the COVID-19 outbreak as an effective contactless payment method, eliminating the use of cash. Furthermore, the emergence of separate merchant accounts on digital payment platforms that provide benefits, such as easy bulk transfers and reconciliation of payments, zero balance, and zero monthly charges further promotes the adoption of digital wallets in the Middle East and Africa market.

Middle East and Africa Digital Wallet Market – By Country

The in-depth research report on the Middle East and Africa Digital Wallet Market covers the market in a number of major countries in the region, including Saudi Arabia, the UAE, Qatar, Kuwait, South Africa, Nigeria, Algeria, and the rest of MEA. Saudi Arabia dominates the Middle East and Africa Digital Wallet Market. The Kingdom is the leading real-time payment market in terms of transaction volumes, followed by Bahrain, which leads the market in terms of consumer adoption of digital wallets and online payments, according to a report published by ACI Worldwide. The growth of digital wallets in these countries is mainly attributed to the favorable policies of the government and central banks for financial and economic growth.

Competitive Landscape

Major players operating in the Middle East and Africa Digital Wallet Market include Saudi Digital Payment Company (STC Pay), Emirates Digital Wallet (Klip), Vodafone Qatar Q.S.C., Orange S.A., HyperPay Inc., Google, Apple Inc., Samsung, Skrill Limited, and FNB. These companies employ various strategies to further enhance their market share, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In September 2023 - Alipay+ Payment Tech, an e-wallet solution provider based in China, announced its plans to launch a full suite of e-wallet solutions in the Middle East market.

Scope of the Report

By Type

• Closed Wallet

• Semi-closed Wallet

• Open Wallet

By Application

• Money Transfer

• Recharge

• Movie Booking

• Food Ordering

• Others

By Country

• Saudi Arabia

• UAE

• Qatar

• Kuwait

• South Africa

• Nigeria

• Algeria

• Rest of MEA