Report Overview

Saudi Arabia Digital Wallet Market - Industry Trends & Forecast Report, 2029

Saudi Arabia Digital Wallet Market size was estimated at USD 438.41 million in 2022. During the forecast period between 2023 and 2029, the size of Saudi Arabia Digital Wallet Market is projected to grow at a CAGR of 13.07% reaching a value of USD 916.35 million by 2029. Major growth drivers for the Saudi Arabia Digital Wallet Market include the increasing adoption of digital wallet services within the country. Digital wallets, also recognized as e-wallets, serve as virtual platforms for storing and managing financial information. They empower users to conduct diverse transactions, including online payments, peer-to-peer transfers, and bill payments, without reliance on physical cash or traditional banking methods. A key driver for this surge is the growing smartphone penetration in Saudi Arabia, where a significant portion of the population owns smartphones. This widespread smartphone usage establishes a solid foundation for the pervasive adoption of digital wallets, given their ease of accessibility through mobile apps. As digital transactions become more ingrained in consumer behavior, the Saudi Arabia Digital Wallet Market is well-positioned for dynamic expansion, aligning with the country's tech-savvy populace and the increasing trend towards cashless transactions.

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. This technology facilitates electronic transactions and enables individuals to make purchases 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 both software and information components.

Saudi Arabia Digital Wallet Market

Growth Drivers

Increasing Adoption of Digital Payment Mechanisms

In Saudi Arabia, the e-commerce industry is experiencing significant expansion, leading to the emergence of secure and efficient payment solutions. The increasing demand for digital wallets is closely tied to the growing e-commerce market, where these wallets provide a convenient option for seamless online transactions, fueling the overall industry growth. As one of the most advanced and rapidly growing economies in the Middle East, Saudi Arabia attributes over 15% of its GDP to the thriving e-commerce sector. This growth is further propelled by widespread smartphone usage and widespread access to high-quality internet connections, fostering a favorable environment for the surge in digital transactions. According to the World Bank Group, more than 93% of the population in Saudi Arabia enjoys reliable internet connectivity, accentuating the country's digital transaction landscape.

Restraints

Lack of Trust in Digital Transaction

The Saudi Arabia Digital Wallet Market faces growth limitations due to a lack of trust in digital transactions. The hesitation among users to fully embrace digital payment methods hampers the market's expansion. Despite the convenience and efficiency offered by digital wallets, concerns regarding security and trustworthiness act as deterrents, hindering widespread acceptance. Building consumer confidence in the safety and reliability of digital transactions is crucial for unlocking the full potential of the Saudi Arabia Digital Wallet Market. Addressing these trust-related challenges is imperative to foster greater adoption and stimulate market growth.

Saudi Arabia Digital Wallet Market

Segmental Coverage

Saudi Arabia Digital Wallet Market – By Device

By device, the Saudi Arabia Digital Wallet Market is bifurcated into PCs/Laptops and Smartphones segments. The smartphones segment holds a higher share in the Saudi Arabia Digital Wallet Market by device. In 2021, the number of mobile cellular subscriptions in the country reached 45,427,321, marking a notable 5% increase from the previous year, as reported by the World Bank. Moreover, data from the General Authority for Statistics indicates that in 2022, an impressive 97.7% of individuals aged 15 and above in Saudi Arabia owned smartphones. This surge in smartphone ownership, accompanied by the widespread use of the internet and the increasing adoption of 5G technology, is anticipated to drive the utilization of digital wallets on smartphone devices. Consequently, this trend is expected to play a pivotal role in propelling the overall growth of the digital wallet market in the region.

Saudi Arabia Digital Wallet Market – By Application

Based on application, the Saudi Arabia Digital Wallet Market is divided into Money Transfer, Recharge, Movie Booking, and Food Ordering segments. The money transfer segment holds the highest share in the Saudi Arabia Digital Wallet Market by application. The increasing popularity of digital payment methods, particularly digital wallets, is fueling the need for secure and convenient money transfer solutions. Saudi Arabia, with its substantial smartphone penetration, is well-positioned to embrace mobile-based money transfer services facilitated by digital wallets. Additionally, the implementation of the Saudi Arabian Riyal Instant Transfer System (SARIE) in 2021 by the government further supports the shift towards digitalization and cashless transactions, encouraging the adoption of digital wallets for quick and secure money transfers.

Competitive Landscape

Major players operating in the Saudi Arabia Digital Wallet Market include STC Pay, Geidea Solutions, Hala, Alinma Pay, Friendi Pay, Meem, Mada Pay, HyperPay, BayanPay, and Careem. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In September 2023 - Alipay+ Payment Tech made its debut in the Middle East at Seamless Saudi Arabia 2023, where it presented its e-wallet solutions. Developed by Ant Group, Alipay+ enables the swift creation of e-wallet apps with superior functionality. The showcase included digital wallets, lending services, super apps, card acquiring, anti-fraud measures, and professional training programs. Tailored for the burgeoning Middle East market, Alipay+ aimed to support local partners in establishing successful e-wallet businesses, drawing on its global payment ecosystem expertise.

• In February 2023 - Saudi telecom provider Mobily expanded its mobile payment service, Mobily Pay, in collaboration with Ericsson. The five-year partnership aims to enhance the platform, offering users various financial services such as contactless payments, money transfers, international remittances, digital card payments, cash-back, bill payments, and mobile top-ups. The move aligns with Saudi Arabia's shift toward digital payments, with the government projecting a 70% non-cash transaction rate by 2030.

Scope of the Report

By Device

• PCs/Laptops

• Smartphones

By Application

• Money Transfer

• Recharge

• Movie Booking

• Food Ordering

1. Research Framework
   1. Research Objective
   2. Resin Service Device Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Digital Wallet Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Growing smartphone penetration, with a large portion of the population
         2. Increasing acceptance and adoption of digital payment methods
      2. Restraints
         1. Lack of trust in digital transaction
         2. Limited adoption among certain demographics
      3.  Opportunities
         1. Growth of e-commerce and social commerce
         2. Favorable government policies for encouraging cashless transactions
      4. Challenges
         1. Concerns regarding data breaches & data vulnerabilities
   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. Saudi Arabia Digital Wallet Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Device
         1. PCs/Laptops
         2. Smartphones
      2. By Application
         1. Money Transfer
         2. Recharge
         3. Movie Booking
         4. Food Ordering
         5. Others
5. Competitive Landscape
   1. List of Key Players and Their Range
   2. Saudi Arabia Digital Wallet Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Merger, Acquisition, Partnership)
6. Impact of Covid-19 on Saudi Arabia Digital Wallet Market.
7. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook, SWOT Analysis)
   1. STC Pay
   2. Geidea Solutions
   3. Hala
   4. Alinma Pay
   5.  Friendi Pay
   6. Meem
   7. Mada Pay
   8. HyperPay
   9.  BayanPay
   10. Careem
   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
   5. Assumption & Limitation

*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       Saudi Arabia Digital Wallet Segmentation                                  

Figure 2       Saudi Arabia Digital Wallet Market Value Chain Analysis   

Figure 3       Company Market Share Analysis, 2022                            

Figure 4       Saudi Arabia Digital Wallet Market Size, By Value (USD Million), 2019–2029

Figure 5       Saudi Arabia Digital Wallet Market Share, By Device, By Value, 2019–2029

Figure 6       Saudi Arabia Digital Wallet Market Share, By Application, By Value,

2019–2029

List of Tables      

Table 1        Saudi Arabia Digital Wallet Market Share, By Device, By Value, 2019–2029

Table 2        Saudi Arabia Digital Wallet Market Share, By Application, By Value, 2019–2029

Table 3        STC Pay Company Overview

Table 4        STC Pay Financial Overview

Table 5        Geidea Solutions Company Overview

Table 6        Geidea Solutions Financial Overview

Table 7        Hala Company Overview

Table 8        Hala Financial Overview

Table 9        Alinma Pay Company Overview

Table 10      Alinma Pay Financial Overview

Table 11      Friendi Pay Company Overview

Table 12      Friendi Pay Financial Overview

Table 13      Meem Company Overview

Table 14      Meem Financial Overview

Table 15      Mada Pay Company Overview

Table 16      Mada Pay Financial Overview

Table 17      HyperPay Company Overview

Table 18      HyperPay Financial Overview

Table 19      BayanPay Company Overview

Table 20      BayanPay Financial Overview

Table 21      Careem Company Overview

Table 22      Careem Financial Overview