Analysts at Ken Research in their latest publication “Saudi Arabia Cards and Payments Market Outlook to 2023 – Increasing Penetration of Islamic Credit Cards Coupled with Rising Preference for Online Shopping to Drive Market Growth”, believe that increasing penetration of debit cards and credit cards will create a positive impact on Saudi Arabia cards and payments market. The market is expected to register a positive CAGR of 12.7% in terms of transaction volume during the forecast period 2018-2023. The market is further expected to be driven by the growing E-commerce industry, rising mobile phone penetration and government push towards financial inclusion.
Government launched Mada national payment system to support Mada debit cards. As a result of which, banks are now able to offer online payment services to card holders. Mada debit cards are issued by local banks and are part of the digital payment strategy to reduce cash transactions in the country thus; enabling the use of debit cards to make online payments without restrictions over secure payment platforms.
In 2018, Visa established a partnership with the Saudi Payments Network to launch the Mada Pay feature on Mada debit cards, being the first multi-issuer mobile payment platform to offer contactless NFC (near field communications).
Banks have increased their focus on establishing customer relationships through offering advanced services and competitive loyalty programmes. For instance, Al Rajhi Bank ensures it offers its customers a wide variety of credit card options which are Sharia-compliant and have wide acceptance and flexibility worldwide.
Customer Engagement by Banks: Since digital channels have become a better way to reach out to customers, banks in Saudi Arabia have started to shift from customer experience to customer engagement. The ability to personalize communications, proactively respond to events and queries, and preventing fraudulent activities are some of the key factors in order to improve customer loyalty and retention. Saudi Arabia is making huge investments in digital technology in order to transform the financial industry.
Implementation of VAT: With the implementation of the Value Added Tax in the beginning of 2018 and other increases in the cost of living in the country for most expatriates, consumers found it hard to adapt to changing economic policies and cover their expenditure. The new dependent visa fees for expatriates require expatriates to pay monthly, leading to an increase in the use of credit cards for most household expenses. Loyalty programmes, discounts and cash back points are thus lucrative for consumers in the KSA, and issuers are gearing up to offer attractive loyalty programmes.
Digitization: Huge investments are being made in digital technology to transform the financial industry in Saudi Arabia. Both consumers as well as retailers are more digitalized and technology-oriented. The shift is towards mobile and online payments (especially debit and credit cards), which has been the priority of financial entities looking for customer satisfaction. The penetration rate is low but is steadily increasing over the last decade from cash based economy to electronic payments. Banks are gearing up to increase this pace of digitization exponentially. Bank transfers to government, payments for custom duties, B2B payments are gradually happening through credit cards.
Saudi Arabia Cards and Payments Market
Payment Cards in Saudi Arabia
Payment Services in Saudi Arabia
Payment System History Saudi Arabia
Payment System Genesis Saudi Arabia
Saudi Arabia Cards and Payments Market Outlook
Saudi Arabia Payments System Market Outlook
Saudi Arabia’s National Payment System
Saudi Arabia’s Cards and Payments Market Segmentation
Paper Clearing Market Saudi Arabia
Cheques Clearing System Saudi Arabia
Paper Clearing Market Size Saudi Arabia
Paper Clearing Market Segmentation Saudi Arabia
Credit Cards in Saudi Arabia
Debit Cards in Saudi Arabia
MADA Cards in Saudi Arabia
SARIE System in Saudi Arabia
SARIE Market Size Saudi Arabia
SARIE Market Segmentation Saudi Arabia
Interbank Payments in Saudi Arabia
Saudi Arabia Payments Market Size
Saudi Arabia Economic Overview
Cheque Clearing System Saudi Arabia
Banks in Saudi Arabia
Islamic Banking in Saudi Arabia
ATMs in Saudi Arabia
Technology Trends in Saudi Arabia
Credit Cards Revenue Streams Saudi Arabia
Debit Cards Revenue Streams Saudi Arabia
Payment Card Operators in Saudi Arabia
Payment Card Issuers in Saudi Arabia
Credit Cards Trends Saudi Arabia
SAMA Regulations Saudi Arabia
Payment Market Trends Saudi Arabia
National Commercial Bank Saudi Arabia
Saudi British Bank
Riyadh Bank
Al Rajhi Bank
Arab National Bank
Samba Financial Group
Key Segments Covered:
Saudi Arabia Payment Landscape
SARIE Market
By Payment Type(Interbank Payments, Customer Payments, Others)
Paper Clearing Market
By Type of Cheques (Commercial and Personal Cheques and Interbank Cheques)
By Region
Credit Cards Market
Number of Cards in Circulation,
Number of Transaction
Transaction Volume
Segmentation By Type(Personal and Commercial)
Revenue Stream in Credit Card
Credit Card Details by Major Issuers
Regulations and Requirements for Credit Cards
Competition Scenario by Issuers and Operators
By Number of Cards in Circulation
By Payment Transaction Volume
Future Projections
Debit Cards Market
Number of Cards in Circulation,
Number of Transaction
Transaction Volume
Revenue Stream in Debit Card
Competition Scenario by Issuers and Operators
By Number of Cards in Circulation
By Payment Transaction Volume
Future Projections
Time Period Captured in the Report:
Historical Period: 2013-2018
Forecast Period: 2018-2023
Banks Covered:
National Commercial Bank
Saudi Arabia British Bank
SAMBA Financial Service
Riyad Bank
Al Rajhi Bank
Arab National Bank
Key Topics Covered in the Report
Saudi Arabia Payments Landscape
SARIE Market
Paper Clearing Market
Payment Cards Stakeholders
Digital Phase in Saudi Arabia
Credit Cards Market Size
Credit Cards Market Segmentation
Revenue Stream in Credit Card System
Islamic Banking
Regulations and Requirements for Credit Cards
Competition Scenario in Credit Cards Market
Debit Cards Market Size
Debit Cards Market Segmentation
Revenue Stream in Debit Card System
Competition Scenario in Debit Cards Market
Snapshot on Prepaid Card Market
Snapshot on Charge Card Market
Trends and Developments
Issues and Challenges
Analyst Recommendations
For more information, refer to below link:
https://www.kenresearch.com/banking-financial-services-and-insurance/financial-services/saudi-arabia-cards-and-payments-market/257746-93.html
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