GCC Peer-to-Peer (P2P) Payments Market Size, Share, Growth Drivers & Forecast 2025-2030

GCC Peer-to-Peer (P2P) Payments Market valued at USD 15 billion, driven by digital adoption, e-commerce growth, and smartphone penetration in UAE and Saudi Arabia.

The GCC Peer-to-Peer (P2P) Payments Market is valued at USD 15 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing adoption of digital payment solutions, the rise of e-commerce, and the growing smartphone penetration across the region. The convenience and speed of P2P transactions have made them a preferred choice for consumers and businesses alike.

Key players in this market include the United Arab Emirates and Saudi Arabia, which dominate due to their advanced financial infrastructure, high internet penetration rates, and a tech-savvy population. The presence of numerous fintech startups and established banks offering innovative P2P solutions further enhances their market leadership.

In 2023, the Saudi Arabian Monetary Authority (SAMA) implemented regulations to enhance the security of digital payments, mandating that all P2P payment platforms comply with strict cybersecurity standards. This regulation aims to protect consumers and foster trust in digital financial services, thereby promoting the growth of the P2P payments ecosystem.

GCC Peer-to-Peer (P2P) Payments Market Segmentation

By Type:

The segmentation by type includes various services that cater to different consumer needs. The dominant sub-segment is Person-to-Person Transfers, which has gained traction due to the increasing need for quick and easy money transfers among individuals. Bill Splitting Services and Remittance Services are also significant, driven by social interactions and the expatriate population in the GCC. Digital Wallets are rapidly growing as they offer a comprehensive solution for various payment needs.

By End-User:

The end-user segmentation highlights the diverse range of customers utilizing P2P payment services. Individual Consumers represent the largest segment, driven by the convenience of sending and receiving money among friends and family. Small Businesses are increasingly adopting these services for quick transactions, while Large Enterprises utilize them for payroll and vendor payments. Non-Profit Organizations also leverage P2P payments for fundraising and donations.

GCC Peer-to-Peer (P2P) Payments Market Competitive Landscape

The GCC Peer-to-Peer (P2P) Payments Market is characterized by a dynamic mix of regional and international players. Leading participants such as PayPal Holdings, Inc., Venmo (a PayPal service), TransferWise Ltd., Revolut Ltd., Zelle (Early Warning Services, LLC), Cash App (Square, Inc.), Alipay (Ant Group), WeChat Pay (Tencent), Google Pay (Google LLC), Apple Pay (Apple Inc.), Samsung Pay (Samsung Electronics), Stripe, Inc., Adyen N.V., WorldRemit Ltd., Remitly, Inc. contribute to innovation, geographic expansion, and service delivery in this space.

GCC Peer-to-Peer (P2P) Payments Market Industry Analysis

Growth Drivers

Increasing Smartphone Penetration:

The GCC region has witnessed a significant rise in smartphone penetration, reaching approximately 90% in future, according to the International Telecommunication Union. This surge facilitates easier access to P2P payment platforms, enabling users to conduct transactions seamlessly. With over 60 million smartphone users in the GCC, the demand for mobile payment solutions is expected to grow, driving the adoption of P2P payment services across various demographics.

Rising Demand for Cashless Transactions:

The GCC countries are experiencing a notable shift towards cashless transactions, with cash usage declining by 40% since 2020. The World Bank reported that digital payment transactions in the region reached 1.5 billion in future, reflecting a growing consumer preference for convenience and efficiency. This trend is further supported by the increasing number of merchants accepting digital payments, which enhances the overall ecosystem for P2P transactions.

Enhanced Security Features in Payment Systems:

Security remains a top priority for consumers, and advancements in payment technology have led to improved security features. In future, it is estimated that 80% of P2P payment platforms in the GCC will implement biometric authentication and end-to-end encryption. These enhancements are crucial in building consumer trust, as evidenced by a 50% increase in user registrations on secure platforms, thereby driving market growth.

Market Challenges

Regulatory Compliance Complexities:

The regulatory landscape for P2P payments in the GCC is intricate, with varying compliance requirements across countries. For instance, the Financial Action Task Force (FATF) guidelines necessitate stringent anti-money laundering (AML) measures, which can be costly and time-consuming for service providers. In future, it is projected that compliance costs could account for up to 20% of operational expenses, posing a significant challenge for market players.

Consumer Trust Issues with Digital Payments:

Despite the growth in digital payments, consumer trust remains a barrier. A survey by the GCC Central Bank indicated that 70% of consumers express concerns over data privacy and fraud. This skepticism can hinder the adoption of P2P payment solutions, as users may prefer traditional methods. Addressing these trust issues is essential for service providers to enhance user engagement and drive market growth.

GCC Peer-to-Peer (P2P) Payments Market Future Outlook

The GCC P2P payments market is poised for significant evolution, driven by technological advancements and changing consumer behaviors. As digital literacy improves, more users are expected to embrace P2P platforms, particularly among younger demographics. Additionally, the integration of artificial intelligence in fraud detection and customer service will enhance user experiences. The collaboration between fintech companies and traditional banks will further streamline services, making P2P payments more accessible and secure for a broader audience.

Market Opportunities

Expansion into Underserved Demographics:

There is a significant opportunity to target underserved populations, particularly in rural areas where traditional banking services are limited. By offering tailored P2P solutions, companies can tap into a market of approximately 15 million potential users, enhancing financial inclusion and driving growth in the sector.

Integration with E-commerce Platforms:

The rise of e-commerce in the GCC, projected to reach $40 billion in future, presents a lucrative opportunity for P2P payment providers. By integrating payment solutions with popular e-commerce platforms, companies can facilitate seamless transactions, thereby increasing user engagement and transaction volumes, ultimately boosting market share.