As of 2023, digital wallets constitute approximately 20% of the total online spending in the MENA region.
Card payments are the dominant force, but alternative payment methods are on the rise in the Middle East
Notably, digital payment adoption is high in countries like the UAE, Israel, and Saudi Arabia, where between 7 and 9 out of 10 adults embraced digital payments in 2022. In contrast, Jordan shows a lower double-digit adoption rate, highlighting variations in digital payment development within the region.
When it comes to online shopping in Saudi Arabia, there is a relatively even distribution between card and alternative payment methods. In Israel, cards play a significant role in online payments, followed by e-wallets. Moreover, the card payments market in Saudi Arabia is projected to experience a double-digit CAGR by 2027. As such, card payments maintain their dominance as a leading online payment method in the Middle East, while digital wallets account for about a fifth of the total online spending in the MENA region.
A notable trend is the anticipated double-digit CAGR in real-time payments
While card payments remain prominent in major Middle Eastern countries, alternative payments are gaining ground. This shift is evident in the increased use of real-time payments. For instance, in Saudi Arabia, the number of real-time payment transactions is expected to more than triple between 2022 and 2027, showing a double-digit CAGR. Furthermore, in the UAE, real-time payment transactions are projected to nearly quadruple during the same period, with an even higher double-digit CAGR.
Questions Covered in the Report:
- What percentage of online transactions in the MENA region is expected to come from mobile commerce by 2025?
- What portion of MEA’s online spending came from digital wallets in 2023?
- By 2027, what percentage of total electronic payments will be real-time in MEA and South Asia?
- What’s the expected value of digital payments in the UAE by 2031?
- What’s the projected CAGR for card payments in Saudi Arabia from 2023 to 2027?
Countries Covered: UAE, Saudi Arabia, Israel, Jordan.
Table of Contents
1. Management Summary
2. Global Developments
- Overview of the Online and Mobile Payment Trends, September 2023
- B2C E-Commerce Payment Value, in USD trillion, 2023e & 2027f
- Preferred Online Payment Methods For E-Commerce Purchases, in % of Adults, June 2022
- Preferred Payment Method When Shopping Online, in % of Respondents, October 2022
- Value of Contactless Card Transactions, in USD trillion, 2022e & 2027f
- Virtual Card Transaction Value, in USD trillion, 2022e & 2027f
- BNPL B2C E-Commerce Sales, in USD billion, 2022e & 2027f
- Number of BNPL Users, in millions, 2022e & 2027f
- Value of Digital Wallet Transactions, in USD trillion, 2023e & 2028f
- Total Number of OEM Pay E-Commerce Transactions, in USD billion, Growth in Transactions, in %, & Average Transaction Volume Per OEM Pay User, in USD, 2026f
- Share of OEM Pay E-Commerce Transactions Stemming From Purchases of Digital Goods, in %, 2026f
- Top Reasons Because of Which Respondents Are Likely to Abandon Checkout, in % of Adults, June 2022
- Most Accessible vs Most Preferred Online Payment Method, in % of Adults, June 2022
- Share of Consumers Agreeing With the Following Statements Related to Security of Online Payment, in %, April 2023
- Share of Consumers Agreeing With the Following Statements Related to Digital and Mobile Wallets, in %, April 2023
- Top Consumer Expectations at Checkout When Making Online Purchases, incl. “Payment Methods”, in % of Respondents, October 2022
- QR Code Payment Transaction Value, in USD billion, 2023e & 2028f
- Cryptocurrency Payment Value, in USD billion, 2020-2025f
- Mobile Money Statistics, incl. Number of Live Services, Registered Accounts, in millions, Active Accounts, in millions, Transaction Volume in millions, and Transaction Value, in USD billion, and Year-on-Year Growth, in %, by Region, 2022
3. Middle East & Africa
3.1. Regional
- Online & Mobile Payment Trends, October 2023
- Share of Mobile Commerce Making Up Total Online Transaction Value, in %, 2025f
- Share of Digital Wallets Making Up Total Online Spending, in %, 2023e
- Real-Time Payments Volume, in billions, 2022 & 2027f
- Real-Time Payments Share of Total Electronic Payments, in %, 2022 & 2027f
3.2. Middle East
3.2.1. UAE
- Share of Adults That Made a Digital Payment, in %, 2022
- Digital Payment Transaction Value, in USD billion, 2021* & 2031f
- Number of Real-Time Payment Transactions, in millions, 2022 & 2027f
3.2.2. Saudi Arabia
- Share of Adults That Made a Digital Payment, in %, 2022
- Breakdown of B2C E-Commerce Payment Methods, in %, 2022
- Card Payments Market Size, in USD billion, 2023e & 2027f
- Number of Real-Time Payment Transactions, in billions, 2022 & 2027f
3.2.3. Israel
- Share of Adults That Made a Digital Payment, in %, 2022
- Breakdown of Online Payments Used For Online Purchases, in %, 2022e
- Share of Adults That Used a BNPL Service, in %, Q3 2022
3.2.4. Jordan
- Share of Adults That Made a Digital Payment, in %, 2022
- BNPL Use, in % of Respondents, July 2022
- Number of Digital Payment Users, by Select Digital Payment Type, in millions, August 2023
- Number of Digital Payment Transactions, by Select Digital Payment Type, in millions, August 2023
Samples
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Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- CliQ
- JoMoPaya
