Saudi Arabia Prepaid Card and Digital Wallet Market Intelligence and Future Growth Dynamics Databook - Q2 2025 Update

Key Trends and Drivers in the Saudi Arabia Prepaid Cards Sector

Accelerated Adoption of Digital Payment Solutions

• Saudi Arabia's push toward digital payments is reshaping consumer financial habits, with prepaid cards playing an essential role in this transition. The government's Vision 2030 initiative is a key driver, aiming to reduce cash reliance and enhance financial inclusion. This shift is evident in the increasing adoption of prepaid cards facilitated by traditional banks and emerging fintech firms.
• The rise of digital-only banks and fintech companies has further accelerated prepaid card adoption as these institutions introduce user-friendly, technology-driven payment solutions. Consumers are progressively moving away from cash, seeking secure and efficient digital alternatives.
• Over the next two to four years, prepaid cards are expected to become an even more prominent part of Saudi Arabia's payment ecosystem. Financial institutions and fintech firms will likely expand their prepaid offerings, integrating them with digital wallets and contactless payment solutions. As the regulatory framework continues supporting digital payments, prepaid card usage will likely increase across retail and corporate sectors.

Growth of E-commerce Driving Prepaid Card Usage

• Saudi Arabia’s expanding e-commerce sector is driving the adoption of prepaid cards as consumers seek secure and convenient payment methods. The rise of online shopping platforms has made prepaid cards attractive, particularly for individuals wary of linking their primary bank accounts to digital transactions. As prepaid cards provide a controlled spending mechanism, they appeal to consumers looking to manage online purchases while minimizing the risk of fraud.
• The country's young and tech-savvy population is fueling this trend. With a large segment of consumers actively engaging in digital transactions, prepaid cards offer flexibility without the need for traditional credit lines. Additionally, many retailers and online marketplaces in Saudi Arabia encourage prepaid card usage by integrating them into their payment options, further boosting demand.
• Over the next two to four years, the prevalence of prepaid cards in e-commerce transactions is expected to grow significantly. Payment service providers and fintech companies will likely introduce enhanced prepaid card solutions tailored to frequent online shoppers. This expansion will increase prepaid card penetration and contribute to Saudi Arabia's broader shift toward a cashless economy.

Corporate Adoption of Prepaid Solutions

• Corporate entities in Saudi Arabia are increasingly adopting prepaid card solutions to streamline financial operations, particularly in areas such as employee incentives, business expense management, and corporate gifting. Companies leverage prepaid cards to distribute funds efficiently, reducing reliance on traditional reimbursement processes. This approach minimizes administrative overhead and enhances operational efficiency, making prepaid cards a preferred tool for businesses handling multiple financial transactions.
• Financial control is another key driver behind the corporate adoption of prepaid cards. Organizations can allocate specific amounts to prepaid cards for employees or business activities, ensuring better budget oversight and reducing unauthorized expenditures. Prepaid cards also provide businesses with transaction tracking capabilities, helping finance teams monitor spending patterns and improve financial planning.
• Over the next two to four years, the adoption of prepaid cards in corporate settings is expected to rise significantly. Businesses will likely demand more tailored prepaid card solutions that offer advanced financial management features, such as automated spending limits and category-specific spending restrictions. This anticipated growth will expand the prepaid card market, with financial service providers developing specialized products to cater to corporate needs.

Competitive Landscape of the Saudi Arabia Prepaid Card Market

Current Market Dynamics

• The prepaid card market in Saudi Arabia includes various segments such as payroll cards, travel cards, corporate incentives, and gift cards. While traditional banks have historically dominated the prepaid space, fintech firms and digital banks are now playing a crucial role in expanding prepaid card adoption. This competitive environment pushes financial service providers to develop more flexible and innovative prepaid card solutions for individual consumers and businesses.

Key Players and Market Share

• The competitive landscape in Saudi Arabia includes a mix of established financial institutions, fintech firms, and international payment service providers. Prominent players in the prepaid card market include STC Pay, Riyad Bank, Al Rajhi Bank, Saudi National Bank (SNB), and Alinma Bank. These banks offer prepaid card solutions catering to retail and corporate segments. These banks leverage extensive networks to promote prepaid card adoption through digital banking channels.
• New entrants in the market include fintech firms and digital-only banks such as STC Bank and D360, both of which launched pilot phases of their digital banking services in 2023. These digital banks are expected to introduce prepaid card products as part of their financial services, targeting younger, tech-savvy consumers who prefer digital payment solutions. The rise of these new players is intensifying competition and accelerating product innovation in the prepaid card market.

Recent Launches and Partnerships

• Similarly, Al Rajhi Bank collaborated with Mastercard in 2023 to enhance its prepaid card offerings by integrating advanced security features and expanding merchant acceptance. Additionally, international payment firms such as PayTabs and Stripe are entering partnerships with local fintech players to facilitate prepaid payment processing in Saudi Arabia. These developments strengthen the prepaid card ecosystem, offering consumers more secure and convenient digital payment solutions.

Anticipated Market Evolution (Next 2-4 Years)

• The prepaid card market in Saudi Arabia is expected to witness continued expansion over the next few years, driven by growing digital payment adoption, regulatory support, and increased fintech participation.
• Product differentiation and value-added services will become key competitive factors as competition intensifies. Financial service providers will likely introduce prepaid card solutions with enhanced security, digital wallet integration, loyalty rewards, and specialized business solutions. Additionally, the rise of open banking initiatives in Saudi Arabia could further drive innovation in prepaid card services, making them more adaptable to evolving consumer and corporate needs.

Regulatory Changes

• Saudi Arabia has implemented key regulatory measures in the past year to promote financial inclusion and enhance digital payment security. The Saudi Central Bank (SAMA) introduced new prepaid card regulations in 2023, focusing on fraud prevention, compliance requirements, and transparency in prepaid card fees. These regulations protect consumers and ensure fair competition among prepaid card issuers.
• SAMA also mandated all prepaid card providers to integrate their services with Saudi Payments' national Mada network, enhancing interoperability across different payment channels. This regulatory change ensures that prepaid card users can access a broader range of payment options, increasing overall adoption. Regulatory measures such as these are expected to create a more structured and transparent prepaid card market in Saudi Arabia.

Overview of Prepaid Cards and Digital Wallet Market

Prepaid Card Market Analysis

• Metrics Assessed: The study examines the prepaid card market through various lenses, including transaction value, transaction volume, average transaction value, load value, and the total number of cards in circulation.
• Card Types: A distinction is made between open-loop and closed-loop prepaid cards, providing insights into their respective market shares and growth trajectories.
• Usage Categories: The report segments the prepaid card market into various categories such as general-purpose cards, business and administrative expense cards, travel forex cards, and meal cards.
• Business Segmentation: Further segmentation is provided based on business size and type, including small-scale businesses, mid-tier businesses, enterprise-level businesses, government entities, and retail consumers.
• Sector-Specific Applications: The analysis extends to specific sectors utilizing prepaid cards, including transit and toll payments, healthcare and wellness services, social security and other government benefit programs, fuel purchases, utilities, and more.

Digital Wallet Market Insights

• Key Segments: The digital wallet market is dissected across five primary spending categories: retail shopping, travel, entertainment and gaming, dining establishments, and recharge and bill payments.
• Performance Metrics: For each segment, the report evaluates transaction value, transaction volume, and average transaction value, offering a granular view of consumer spending behaviors.
• Retail Spend Breakdown: An in-depth analysis is provided for retail spending via digital wallets, covering categories such as food and grocery, health and beauty products, apparel and footwear, books, music and video, consumer electronics, pharmacy and wellness, gas stations, restaurants and bars, toys, kids and baby products, services, and other miscellaneous categories.

Virtual Prepaid Card Market Segmentation

• Categories Analyzed: The virtual prepaid card market is segmented into key categories, including general-purpose cards, gift cards, entertainment and gaming cards, teen and campus cards, business and administrative expense cards, payroll cards, meal cards, travel forex cards, transit and toll cards, social security and other government benefit program cards, fuel cards, utilities, and other miscellaneous categories.
• Performance Evaluation: For each category, the report assesses transaction value, providing insights into the adoption and usage patterns of virtual prepaid cards across different consumer segments.

Consumer Usage Trends

The report delves into consumer behavior concerning prepaid cards, segmented by:

• Age Groups: Identifying usage patterns across different age demographics.
• Income Levels: Analyzing how income brackets influence prepaid card adoption and usage.
• Gender: Examining differences in usage trends between genders.

Scope

Saudi Arabia Prepaid Payment Instrument Market Size and Forecast

• Transaction Value Trend Analysis
• Transaction Volume Trend Analysis
• Average Value per Transaction
• Market Share Analysis by Prepaid Card vs. Digital Wallet

Saudi Arabia Digital Wallet Market Size and Forecast

• Transaction Value Trend Analysis
• Transaction Volume Trend Analysis
• Average Value per Transaction
• Market Share Analysis by Key Segments

Saudi Arabia Digital Wallet Market Size and Forecast by Key Segments

• Retail Shopping (Value, Volume, Avg. Value)
• Travel (Value, Volume, Avg. Value)
• Restaurant (Value, Volume, Avg. Value)
• Entertainment and Gaming (Value, Volume, Avg. Value)
• Recharge and Bill Payment (Value, Volume, Avg. Value)

Saudi Arabia Digital Wallet Retail Spend Dynamics

• Food and Grocery - Transaction Value
• Health and Beauty Products - Transaction Value
• Apparel and Foot Wear - Transaction Value
• Books, Music and Video - Transaction Value
• Consumer Electronics - Transaction Value
• Pharmacy and Wellness - Transaction Value
• Gas Stations - Transaction Value
• Restaurants & Bars - Transaction Value
• Toys, Kids, and Baby Products - Transaction Value
• Services - Transaction Value
• Others - Transaction Value

Saudi Arabia Prepaid Card Industry Market Attractiveness

• Load Value Trend Analysis
• Transaction Value Trend Analysis
• Transaction Volume Trend Analysis
• Average Value per Transaction
• Number of Cards
• Market Share Analysis by Functional Attributes - Open Loop vs. Closed Loop
• Market Share Analysis by Prepaid Card Categories

Saudi Arabia Open Loop Prepaid Card Future Growth Dynamics

• Transaction Value Trend Analysis
• Transaction Volume Trend Analysis
• Average Value per Transaction
• Number of Cards

Saudi Arabia Closed Loop Prepaid Card Future Growth Dynamics

• Transaction Value Trend Analysis
• Transaction Volume Trend Analysis
• Average Value per Transaction
• Number of Cards

Saudi Arabia Prepaid Card Consumer Usage Trends

• By Age Group
• By Income Group
• By Gender

Saudi Arabia Prepaid Card Retail Spend Dynamics

• Food and Grocery - Transaction Value
• Health and Beauty Products - Transaction Value
• Apparel and Foot Wear - Transaction Value
• Books, Music and Video - Transaction Value
• Consumer Electronics - Transaction Value
• Pharmacy and Wellness - Transaction Value
• Gas Stations - Transaction Value
• Restaurants & Bars - Transaction Value
• Toys, Kids, and Baby Products - Transaction Value
• Services - Transaction Value
• Others - Transaction Value

Saudi Arabia General Purpose Prepaid Card Market Size and Forecast

Saudi Arabia Gift Card Market Size and Forecast

Gift Card Market Size and Forecast by Functional Attribute

• By Open Loop Gift Card
• By Closed Loop Gift Card

Gift Card Market Size and Forecast by Consumer Segments

• By Retail Consumer Segment
• By Corporate Consumer Segment

Gift Card Market Share Analysis by Retail Categories

• Gift Card Market Share Analysis by Gifting Occasion
• Gift Card Market Share Analysis by Purchase Location

Saudi Arabia Entertainment and Gaming Prepaid Card Market Size and Forecast

Saudi Arabia Teen and Campus Prepaid Card Market Size and Forecast

Teen and Campus Prepaid Card Market Size and Forecast by Functional Attribute

• By Open Loop Teen and Campus Prepaid Card
• By Closed Loop Teen and Campus Prepaid Card

Saudi Arabia Business and Administrative Expense Prepaid Card Market Size and Forecast

Business and Administrative Expense Prepaid Card Market Size and Forecast by Consumer Segments

• By Small Scale Business Segment
• By Mid-Tier Business Segment
• By Enterprise Business Segment
• By Government Segment

Saudi Arabia Payroll Prepaid Card Market Size and Forecast

Payroll Prepaid Card Market Size and Forecast by Consumer Segments

• By Small Scale Business Segment
• By Mid-Tier Business Segment
• By Enterprise Business Segment
• By Government Segment

Saudi Arabia Meal Prepaid Card Market Size and Forecast

Meal Prepaid Card Market Size and Forecast by Consumer Segments

• By Small Scale Business Segment
• By Mid-Tier Business Segment
• By Enterprise Business Segment
• By Government Segment

Saudi Arabia Travel Forex Prepaid Card Market Size and Forecast

Travel Forex Prepaid Card Market Size and Forecast by Consumer Segments

• By Retail
• By Small Scale Business Segment
• By Mid-Tier Business Segment
• By Enterprise Business Segment
• By Government Segment

Saudi Arabia Transit and Tolls Prepaid Card Market Size and Forecast

Saudi Arabia Social Security and Other Government Benefit Programs Prepaid Card Market Size and Forecast

Saudi Arabia Fuel Prepaid Cards Market Size and Forecast

Saudi Arabia Utilities, and Other Prepaid Cards Market Size and Forecast

Saudi Arabia Virtual Prepaid Card Industry Market Attractiveness

• Transaction Value Trend Analysis
• Transaction Volume Trend Analysis
• Average Value per Transaction
• Market Share Analysis by Key Virtual Prepaid Card Categories

Saudi Arabia Virtual Prepaid Card Market Size by Key Categories

• General Purpose Prepaid Card - Transaction Value
• Gift Card - Transaction Value
• Entertainment and Gaming Prepaid Card - Transaction Value
• Teen and Campus Prepaid Card - Transaction Value
• Business and Administrative Expense Prepaid Card - Transaction Value
• Payroll Prepaid Card - Transaction Value
• Meal Prepaid Card - Transaction Value
• Travel Forex Prepaid Card - Transaction Value
• Transit and Tolls Prepaid Card - Transaction Value
• Social Security and Other Government Benefit Programs Prepaid Card - Transaction Value
• Fuel Prepaid Cards - Transaction Value
• Utilities, and Other Prepaid Cards - Transaction Value

Reasons to buy

• In-depth understanding of Saudi Arabia’s prepaid card and digital wallet market dynamics: Understand market opportunity, industry dynamics, key trends and drivers across 80+ market segments and sub-segments of prepaid payment instrument, prepaid card, digital wallet and virtual prepaid card.
• Understand Saudi Arabia’s market opportunities and key trends along with forecast (2020-2029). Understand market dynamics through essential KPIs such as transaction value, transaction volume, and average value per transaction.
• Develop Saudi Arabia’s market specific strategies: Identify growth segments and target specific opportunities to formulate your prepaid card and digital wallet strategy; assess market specific key trends, drivers and risks in the industry.
• Detailed analysis of Saudi Arabia’s market share by key players across key prepaid card categories.
• Get insights into Saudi Arabia’s consumer attitude and behaviour: Understand changing consumer attitude and behaviour and boost ROI. Get detailed insights into retail spend through prepaid cards, virtual prepaid cards and digital wallets.