Report Overview

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

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3.  Middle East and Africa Digital Wallet Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Deepening Mobile Phone Penetration
         2. Large Segments of Unbanked and Underbanked Individuals
      2. Restraints
         1. Limited Digital Infrastructure in Certain Regions
      3. Opportunities
         1. Growing Urbanization and Young Population
         2. Growing Trend of E-Commerce
      4. Challenges
         1. Security Concerns
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4.  Middle East and Africa Digital Wallet Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share and Forecast
      1. By Type
         1. Closed Wallet
         2. Semi-closed Wallet
         3. Open Wallet
      2. By Application
         1. Money Transfer
         2. Recharge
         3. Movie Booking
         4. Food Ordering
         5. Others
      3. By Country
         1. Saudi Arabia
         2. UAE
         3. Qatar
         4. Kuwait
         5. South Africa
         6. Nigeria
         7. Algeria
         8. Rest of MEA
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Middle East and Africa Digital Wallet Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Escalating Geopolitical Tensions on Middle East and Africa Digital Wallet Market
7. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
   1. Saudi Digital Payment Company (STC Pay)
   2. Emirates Digital Wallet (Klip)
   3. Vodafone Qatar P.Q.S.C
   4. Orange S.A.
   5. HyperPay INC
   6. Google
   7. Apple Inc.
   8. SAMSUNG
   9. Skrill Limited
   10. FNB
   11. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1.    Qualitative Research
      1.  Primary & Secondary Research
   2.    Quantitative Research
   3.    Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
   4.    Breakdown of Primary Research Respondents, By Region
   5.    Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       Middle East and Africa Digital Wallet Segmentation

Figure 2       Middle East and Africa Digital Wallet Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

Figure 4       Middle East and Africa Digital Wallet Market Size, By Value (USD Million), 2019–2030

Figure 5       Middle East and Africa Digital Wallet Market Share, By Type, By Value, 2019–2030

Figure 6       Middle East and Africa Digital Wallet Market Share, By Application, By Value, 2019–2030

Figure 7       Middle East and Africa Digital Wallet Market Share, By Country, By Value, 2019–2030

List of Tables

Table 1       Middle East and Africa Digital Wallet Market Size, By Value (USD Million), 2019–2030

Table 2       Middle East and Africa Digital Wallet Market Share, By Type, By Value, 2019–2030

Table 3       Middle East and Africa Digital Wallet Market Share, By Application, By Value, 2019–2030

Table 4        Middle East and Africa Digital Wallet Market Share, By Country, By Value, 2019–2030

Table 5        Saudi Digital Payment Company (STC Pay) Company Overview

Table 6        Saudi Digital Payment Company (STC Pay) Financial Overview

Table 7        Emirates Digital Wallet (Klip) Company Overview

Table 8        Emirates Digital Wallet (Klip) Financial Overview

Table 9        Vodafone Qatar P.Q.S.C Company Overview

Table 11      Vodafone Qatar P.Q.S.C Financial Overview

Table 12      Orange S.A. Company Overview

Table 13      Orange S.A. Financial Overview

Table 14      HyperPay INC Company Overview

Table 15      HyperPay INC Financial Overview

Table 16      Google Company Overview

Table 17      Google Financial Overview

Table 19      Apple Inc. Company Overview

Table 20      Apple Inc. Financial Overview

Table 21      SAMSUNG Company Overview

Table 22      SAMSUNG Financial Overview

Table 23      Skrill Limited Company Overview

Table 24      Skrill Limited Financial Overview

Table 25      FNB Company Overview

Table 26      FNB Financial Overview