Saudi Arabia Mobile Payments Market

Saudi Arabia Mobile Payments Market Size and Share:

The Saudi Arabia mobile payments market size was valued at USD 24.7 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 59.8 Billion by 2033, exhibiting a CAGR of 10.3% from 2025-2033. The market is driven by the growing number of e-commerce platforms, facilitating convenience of shopping with mobile payments and the integration of technologies to modernize financial services.​

Government initiatives toward digital transformation are leading the mobile payments industry in Saudi Arabia. Saudi Vision 2030, which focuses on a cashless economy and the use of technology to transform financial services, leads the way. The government has strong regulations and support systems that ensure a secure and efficient ecosystem for digital payments. For constructing a local framework, government is collaborating with fintech companies by funding in startups and fostering innovation through regulatory sandboxes. Furthermore, government-sponsored initiatives like the National Digital Transformation Program seek to digitize citizen services making mobile payments integral in everyday payments. IMARC Group’s report predicts that the Saudi Arabia digital transformation market will exhibit a growth rate (CAGR) of 27.90% during 2024-2032.

Fostering user trust and accelerating adoption, cybersecurity measures are a critical driver of the market. With the increasing digital transactions, cybersecurity has become a priority for both bank, and payment service providers. Sophisticated security systems like multi-factor authentication and tokenization facilitate operational efficiency in virtual transactions, mitigating risks of fraud and data breaches. Strict guidelines for protecting digital financial ecosystems are being implemented by the Government of Saudi Arabia. These frameworks motivate financial institutions and fintech companies to adopt state-of-the-art technologies and international cybersecurity standards for their operations. As a result, users feel confident using mobile payment solutions, driving higher transaction volumes. The IMARC group’s report predicted that the Saudi Arabia cybersecurity market will exhibit a growth rate (CAGR) of 12.78% during 2024-2032.

Saudi Arabia Mobile Payments Market Trends:

Growing number of e-commerce platforms

The growing number of e-commerce platforms in Saudi Arabia has spurred the adoption of mobile payments. The development of online shopping sites and increased penetration of the internet is causing customer behavior to shift to digital transactions. The use of mobile payments provides a seamless and secure way to complete online purchases. Digital payment methods integrate smoothly with the e-commerce platforms, facilitating convenience of shopping from smartphones. Not only this, but special discounts or other loyalty programs associated with mobile payments further encourage people to switch to online payments. The rise of buy-now-pay-later (BNPL) solutions, which often rely on mobile payment systems, is also contributing to this trend. According to the IMARC Group’s report, the Saudi Arabia e-commerce market is expected to reach USD 623 Billion by 2032.

Modernization of the banking sector

Banks are increasingly adopting digital transformation strategies to elevate customer experience and remain competitive. This transformation is being fortified by including mobile payment solutions in banking apps, allowing seamless transactions. Major contributors are investing in advanced digital platforms and partnering with fintech companies to offer innovative payment services. These collaborations facilitate the development of safe and user-friendly mobile payment systems that cater to the needs of tech-savvy users. Initiatives supported by the government are focusing on digitizing banking services for promoting financial inclusion. By modernizing infrastructure, including real-time payment networks, banks are making mobile transactions faster and more reliable. As per the IMARC Group’s report, the Saudi Arabia fintech market is anticipated to reach USD 4.5 Billion by 2033.

Rising development of multipurpose apps

Multipurpose apps provide users with seamless experiences by combining various functionalities in one place. Thus, allowing users to make quick and secure payments for multiple services like shopping, transportation, and banking. Super apps are changing how users access digital platforms by offering them convenient and on-time accessibility at their fingertips. In addition to retail and transportation, online grocery services are also gaining traction through multipurpose apps. Integration of mobile payment options for grocery shopping, allows users to conveniently pay for their groceries using mobile wallets or bank accounts. The data published on the website of the IMARC Group shows that the Saudi Arabia online grocery market size reached USD 1,543.7 Million in 2024.

Saudi Arabia Mobile Payments Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Saudi Arabia mobile payments market, along with forecast at the country and regional levels from 2025-2033. The market has been categorized based on payment type and application.

Analysis by Payment Type:

• Proximity Payment
  • Near Field Communication (NFC)
  • Quick Response (QR) Code
• Remote Payment 
  • Internet Payments
  • Direct Operator Billing
  • Digital Wallet
  • SMS Payments
     

Proximity payments {near field communication (NFC) and quick response (QR) code} are done by tapping or scanning a device at the point-of-sale terminal. This form of payment uses technologies, for example, NFC or QR code scanning. This type of payment is excellent for face-to-face transactions. These proximity payments find large application in retail and hospitality sectors, which are backed by numerous NFC-enabled terminals.

Remote payment (internet payments, direct operator billing, digital wallet, and SMS payments) is made without any physical contact with a payment terminal and are made typically for online purchase. They use digital wallets and payment gateways and constitute the backbone of e-commerce development. Increased online shopping and the acceptance of digital payment channels by businesses, contribute to the adoption of remote payments in the country.

Analysis by Application:

• Entertainment
• Energy and Utilities
• Healthcare
• Retail
• Hospitality and Transportation
• Others
   

Mobile payments find applications in purchasing digital content including movie tickets, subscription to streaming services, and gaming. The convenience of paying via smartphones elevates the user experience, particularly for on-demand services and digital subscriptions. Online gaming and streaming services are gaining traction in Saudi Arabia, which further accelerates the adoption of mobile payments.

Mobile payments facilitate easy bill payment in the energy and utilities sector. In Saudi Arabia, where digital transformation is a priority, these services are integrated into mobile apps for better accessibility. People are increasingly adopting digital solutions to pay bills as mobile payments is a faster and efficient alternative to traditional payment methods. This convenience is reinforcing user satisfaction and driving the Saudi Arabia mobile payments share in the global market.

Mobile payments enable patients to make payments for medical services as well as for prescriptions and insurance premiums through smartphones. Thus, improving convenience and reducing waiting time. The adoption of digital payment methods in healthcare is increasing as part of the digitalization initiative under Saudi Vision 2030.

Mobile payments are fast-growing in retail as more people prefer buying form e-commerce and digital stores. People are optimizing mobile payments for both in-store purchases and online shopping, facilitated by apps and integrated payment systems. Retailers are now installing mobile payments within their stores, targeting tech-savvy population to enable easy payment.

In the hospitality and transportation industries, customers are opting to pay for their accommodations and travel expenses through mobile payments. Digital payments are commonly used for hotel bookings, airline tickets, and ride-hailing services. Mobile payments provide fast and speedy transactions without the hassle to carry cash or physical cards.

Regional Analysis:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region
   

The Northern and Central Regions are major hubs for the mobile payments due to their economic significance and high population density. As the capital, Riyadh leads in digital transformation initiatives as businesses in this region are quickly adopting mobile payment solutions. The high concentration of financial institutions and tech startups further accelerates the demand for mobile payments.

Due to its thriving retail and tourism sectors, cities like Jeddah and Mecca are experiencing high adoption of mobile payments. Jeddah is a commercial center and is home to a large number of retailers who integrate mobile payments. In Mecca and Madina the mobile payment system keeps smooth transactions for services like travel, accommodation, and religious offerings.

Oil industry’s dominance and proximity to international trade routes are making mobile payments vital in the Eastern region. The region continues to evolve and develop its digital infrastructure, making mobile payments a popular choice for local and foreign customers. The presence of global corporations and large retail chains has accelerated the adoption of mobile payment systems in the region.

As part of the government's digital transformation efforts, cities like Abha and Jizan are increasingly adopting mobile payment systems. While this region may have initially lagged behind in terms of mobile payment infrastructure, growing internet penetration, and government incentives are spurring growth.

Competitive Landscape:

Key players including banks, fintech companies, telecom operators, and payment service providers, play a vital role in driving the Saudi Arabia mobile payments market growth. Banks in Saudi Arabia are leading the charge by integrating mobile payment solutions into their digital banking apps. Other contributors include telecom operators that offer mobile wallets and payment services, capitalizing on the country's high mobile penetration. Fintech companies are further enhancing the ecosystem by providing innovative payment solutions, including peer-to-peer transfers and buy-now-pay-later services. These platforms are improving security and speed, while extending convenience to meet the escalating demand for mobile payment. In September 2024, Tabby announced the acquisition of Tweeq, a licensed Saudi-based digital wallet, to expand its financial services. This acquisition supports Saudi Arabia's Vision 2030 by enhancing digital payments.

The report provides a comprehensive analysis of the competitive landscape in the Saudi Arabia mobile payments market with detailed profiles of all major companies, including:

• AlinmaPay (Alinma Bank)
• Hala
• mada Pay
• PayPal Holdings Inc.
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Latest News and Developments:

• December 2024: The Saudi Central Bank (SAMA) launched Samsung Pay in Saudi Arabia, allowing secure payments via Samsung devices. This move supports the country’s Vision 2030 goal of enhancing digital payments.
• January 2024: Tiqmo signed an exclusive agreement with Mastercard to launch prepaid cards through its mobile app in Saudi Arabia. The partnership aims to support the country's Vision 2030 and boost digital payments.

Saudi Arabia Mobile Payments Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia mobile payments market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia mobile payments market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia mobile payments industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.