Friday, 27 September 2019

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


The report titled 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, provides a comprehensive analysis of payment card services in Saudi Arabia. The report focuses on overall market size for cards and payment services, SARIE market segmentation by Payments Type (Customer Payments, Interbank Payments and Others), Saudi Arabia’s Paper Clearing market segmentation by Type (Commercial and Personal Cheques and Interbank Cheques), by Region (Riyadh, Dammam, Jeddah, Makkah, Almadinah and Others); Cards and Payments Market by Stakeholders in Ecosystem, Digital Phase; Operating Model; Credit Card Market Size by Number of Cards in Circulation, Number of Transactions and Transaction Volume), By Revenue Stream in a Credit Card system,  Credit Card market segmentation by Type (Personal Credit Cards and Commercial Credit Cards), by Competition Scenario in Credit Card market on the basis of Number of Cards in Circulation  by Transaction Volume by Issuers and Operators; Credit Card Details for Top Banks; Regulations and Requirements related to Credit Cards; Credit Card market Future Outlook and Projections; Debit Card Market Size by Number of Cards in Circulation, Number of Transactions and Transaction Volume), by Revenue Stream in a Debit Card System, by Competition Scenario in Debit Card market on the basis of Number of Cards in Circulation and Transaction Volume by Issuers and Operators, Debit Card market Future Outlook and Projections; Major Bank Profiles in Cards and Payments Market (National Commercial Bank, Riyadh Bank, Arab National Bank, Saudi British Bank, Al Rajhi Bank and SAMBA Financial Group); American Express Profile; Strengths and Weaknesses of Major Banks; Snapshot on Prepaid Cards in Saudi Arabia, Snapshot on Charge Cards in Saudi Arabia and Anti Money Laundering Law. The report also covers overall trends and developments, issues and challenges; and analyst recommendations.
Market Size and Overview: The credit and debit card business of Saudi Arabia has witnessed steady growth owing to rising transaction volume, number of transaction and cards in circulation. The debit card transaction volume grew at a rate faster than the credit cards, even though both posed single digit growth rate. The credit market by transaction volume grew at a five year CAGR of 4.6%, whereas the debit card transaction volume grew at a five year CAGR of 8.6% during the review period 2013-2018. The number of debit cards in circulation is much more than the credit cards in circulation. When it comes to number of transactions, again the number of debit card transactions outweighs the total number of credit card transactions with a five year CAGR (2013-2018) of 9.9%. Number of credit card transactions as of 2018 witnessed a five year CAGR (2013-2018) of 11.8%, which is faster than debit card transactions growth rate.
Market Segmentation for Credit Cards:
Credit cards in Saudi Arabia have been segmented on the basis of consumer entities i.e. personal credit cards and commercial credit cards. Number of personal credit cards in circulation witnessed a 5 year growth CAGR of 4.2% from 2013-2018. The personal credit card market by transaction volume grew at a five year CAGR of 9.5% from 2013 to 2018. The number of personal credit card transactions dominated with a five year CAGR (2013-2018) of 13.8% in 2018. Number of commercial credit cards in circulation witnessed a negative five year CAGR of (2.8%) from 2013 to 2018. The commercial credit card market by transaction volume declined at a negative five year CAGR of (4.4%) from 2013 to 2018. The number of commercial credit card transactions grew at a five year CAGR of 4.6% during 2013-2018.
Competition Stage and Company Positioning: Competition within Saudi Arabia Cards and Payments Market has been moderately concentrated, with around 13 banks operating under credit cards and debit cards market. Major operators in the space are MasterCard, Visa and American Express. The market competition is based on the transaction volume and number of credit / debit cards in circulation. The overall card market of Saudi Arabia is still in its early growth stage as nearly 80.0% still uses cash as the main mode of payment. A large population remains unbanked along with new technical advancement every year which makes the industry young in its nature.
Competing Parameters: The major parameters on the basis of which the banks compete with each other include technological advancement in financial technology, physical card changes, reward point program, loyalty program, merchant discounts, annual maintenance charge, interest rates and others.
Future Outlook and Projections: Increasing demand for Islamic cards owing to its shariah compliance and entrance of E-commerce giants for instance, Souq, Cobone, Haraj and AliExpress are collectively expected to drive the payment cards market in Saudi Arabia.
The overall credit card market by number of cards in circulation is expected to rise at a five year CAGR of 6.4% in 2023. The number of credit card transactions is expected to surge at a CAGR of 13.1%, much higher than the prior period. The credit card transaction volume is also expected to increase at a five year CAGR of 8.6% by the year ending 2023. The overall debit card market by number of cards in circulation is expected to rise at a five year CAGR of 6.1% by 2023. The growth rate projected is almost similar to that of the credit cards due to high dominance of cash in the economy. The number of debit card transaction is expected to surge at a five year forecasted CAGR growth rate of 16.4% and the debit card transaction volume is expected to increase at a five year CAGR of 14.2% during the forecast period 2018-2023.
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
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