Saudi Arabia Credit Card Market Size Future Outlook And Projections: Ken Research

How Saudi Arabia Credit Cards Market Is Positioned?

Saudi Arabia credit cards market size by transaction volume has increased from SAR ~ billion in 2013 to SAR ~ billion in 2018. The number of credit cards in circulation has gone up from ~ million in 2013 to ~ million in 2018. The absolute increase in number of transactions has been ~% from ~ million in 2013 to ~ million in 2018. The boom in the e-commerce segment, increasing usage of online products and services and various promotional offers and cash backs  by credit organizations have further enabled the usage of payment cards as the mode of payment. Banks are majorly competing on providing a better customer service, offers and rewards and other such parameters.

saudi-arabia-cards-and-payments-market

Different types of credit cards offered in Saudi Arabia are travel cards, co-branded credit cards, non co-branded credit cards and dining credit cards. Credit cards are set to face competition from debit cards as the government introduces new features.

Saudi Arabia Credit Cards Market Segmentation, 2013-2018

The number of personal credit cards in circulation has gone up from ~ million in 2013 to ~ million in 2018. The number of commercial credit cards in circulation has declined from ~ thousand in 2013 to ~ thousand in 2018. The increase in payment transaction volume for personal credit cards has been witnessed from SAR ~ billion in 2013 to SAR ~ billion in 2018. The payment transaction volume for commercial credit cards was observed to decline from SAR ~ billion in 2013 to SAR ~ billion in 2018.

Competition Scenario In Saudi Arabia Credit Cards Market

The market has witnessed fierce competition, i.e., the credit card players have been highly competitive and experimental in product offerings and follow business strategies to expand their reach to untapped audience and retain existing clients. The personal card market in Saudi Arabia is moderately concentrated with a presence of ~ banks holding around ~ market share (both in terms of number of cards issued and transaction volume) and other handful banks which do not have a dedicated cards business. The commercial credit cards market is highly fragmented with major players capturing only around ~% of the market share (in terms of cards issued) and ~% of the market share (in terms of transaction volume) in 2018.

Saudi Arabia Credit Card Market Size Future Outlook And Projections

The number of credit cards in circulation is anticipated to grow to ~ million by 2023E. The number of credit card transactions is expected to grow from ~ million in 2019E to ~ million by 2023E. The credit card transaction volume is expected to reach SAR ~ billion by 2023E from SAR ~ billion in 2019E. The target audience for credit card subscription should not only be limited to domestic population, but also to expatriate living in Saudi Arabia. This will assist banks to cater a wider population thereby increasing number of transactions and transaction volume.

How Saudi Arabia Debit Cards Market Is Positioned?

Saudi Arabia debit cards market size by transaction volume has increased from SAR ~ billion in 2013 to SAR ~ billion in 2018. The number of debit cards in circulation has gone up from ~ million in 2013 to ~ million in 2018. The absolute increase in number of transactions has been ~% from ~ million in 2013 to ~ million in 2018. The majority of the transactions carried out from debit cards are to withdraw cash in KSA as the Saudi Arabian economy is still cash dependent for their everyday transactions. Cash withdrawals account for more than ~% of the overall debit card transaction volume as of 2018.

The contactless debit card is slowly being adopted in Saudi Arabia, aided by government initiatives. It has helped the debit card market to surge in terms of circulations of card, number and volume of transactions. The commercial debit cards are registering strong growth as leading banks expand and diversify their existing card portfolio.

Competition Scenario In Saudi Arabia Debit Cards Market

The debit card market of Saudi Arabia is fairly concentrated with the presence of few banks. The banks are providing different types debit cards having different features, technology and merchant tie-ups. The market is highly competitive and marketing campaigns is a very significant variable considered by all the players with a fair market share in terms of number of transactions, volume of transaction and number of cards in circulation. The Saudi Arabia debit card market is highly competitive as the players are highly prone to lose out the market share because of continuous technological advancement in the financial technologies leading to obsolescence of existing technologies.

Debit Cards Payments Market Future Outlook & Projections

The number of debit cards in circulation has been anticipated to grow to ~ million by 2023E. The debit card number of transaction is expected to surge to ~ million by 2023E from ~ million in 2019E.The debit card transaction volume is anticipated to increase from SAR ~ billion in 2019E to SAR ~ billion in 2023E. The disposable income of Saudi Arabia has increased from SAR ~ in 2017 to SAR ~ in 2018. The economy is expected to boost up in the upcoming years and the disposable income is expected to increase to SAR ~ by 2023 which can be one of the most significant growth drivers for the debit card number of transactions and transaction volume in future. At present, the personal debit card is more dominant in terms of number and volume of transactions; however in the years to come some of the market share is expected to be taken by commercial debit due to its advantages biased towards businesses and corporate.

Snapshot On Prepaid Cards In Saudi Arabia

Saudi Arabia prepaid cards market size by transaction volume has increased from SAR ~ billion in 2013 to SAR ~ billion in 2018.

The number of prepaid cards in circulation has gone up from ~ million in 2013 to ~ million in 2018. The absolute increase in number of transactions has been ~ % from ~ million in 2013 to ~ million in 2018. Prepaid cards are gradually gaining prominence in Saudi Arabia due to the high unbanked and expatriate populations. Government programs for food subsidies, social benefit disbursement or mandates for salary payments into prepaid cards/accounts are also driving growth in this market. In the short term, prepaid cards are expected to see healthy growth rates despite economic challenges and changes in the labor market policy. In the long term, prepaid cards are expected to face more challenges due to the expected financial market transition towards more convenient card less payment options.

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Saudi Arabia Cards and Payments Market

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