Report Overview
Increasing consumer preference for online shopping and contactless payments and growing penetration of online stores for numerous products and services are projected to propel the expansion of GCC financial cards and payments market during the forecast period between 2023 and 2029.

GCC Financial Cards and Payments Market - Industry Trends & Forecast Report, 2029

GCC (Gulf Cooperation Council) financial cards and payments market size was estimated at USD 31.92 billion in 2022. During the forecast period between 2023 and 2029, the size of GCC financial cards and payments market is projected to grow at CAGR of 6.04% reaching a value of USD 47.87 billion by 2029. Major growth drivers for GCC financial cards and payments market include increasing as a result of government attempts to encourage digital payments, the establishment of digital-only banks for SMEs, and rapidly growing e-commerce business. The expanding trend of contactless payment, rising millennial affinity for credit cards, and significant rise in e-commerce due to growing internet and smartphone penetration, as well as high income per capita, are also likely to drive market expansion during the forecast period. Also, a customer preference for using online payments and cards for transactions is driving various financial and retail shops to make a paradigm shift to online platforms and contribute to market growth. The same factor is producing chances for the region's main firms to expand their service offerings and meet expanding consumer expectations. Therefore, these factors are expected to boost the expansion of GCC financial cards and payments market during period in analysis.

GCC Financial Cards and Payments Market- Overview

Financial cards are part of a payment system that is typically issued by financial institutions, IT & Telecom offices, Media & Entertainment firms, and government agencies to facilitate hassle-free transactions and payment operations. For instance, a bank may provide a customer with a financial card that allows them to access funds in their specified bank accounts or through a credit account, make payments via electronic funds transfer, and use automated teller machines. Many technologies are used to deploy financial cards, including embossing, magnetic stripe cards, smart cards, proximity cards, and re-programmable magnetic stripe cards. Due to technical developments in financial cards and payment systems, traditional payment mechanisms such as cash payments, demand drafts, and other payment certificates have become obsolete. In recent years, there has been a tremendous expansion in the use of electronic payment using financial cards. Convenience and increased flexibility are the factors driving the increase in growth. The internet's prevalence, even in the most remote parts of the world, has aided the rise of the financial cards and payments business.

GCC Financial Cards and Payments Market

Growth Drivers

Rapidly Growing Popularity of Online Shopping and Contactless Payments

Increasing use of online shopping and consumer preference for cashless payments is motivating retail businesses and financial institutions to implement QR-code-based payment systems and improve the overall transaction model for people in the region. As a result, the overall expansion of this industry is expected to be profitable and large in the approaching years.

Impact of COVID-19 on GCC Financial Cards and Payments Market

Covid-19 pandemic adversely affected most of the industries in GCC countries. However, the crisis hastened the use of online transactions and encouraged the expansion of the financial cards and payments market in the recent years. As governments across countries implemented lockdowns and travel restrictions for indefinite periods, people turned to digital platforms to buy items and get services, such as attractive offers and doorstep delivery. The tremendous transition was mostly due to the development of secure, private, and dependable media that enabled people to acquire products and services without difficulty. In the UAE and Saudi Arabia, the pandemic accelerated digital connectivity and boosted the adoption of digital payment and e-commerce solutions, resulting in substantial growth in card payments. The convenience and comfort of e-commerce boosted the volume of online purchases. During the forecast period, these factors are projected to boost the GCC financial cards and payments market.

GCC Financial Cards and Payments Market

Segmental Coverage

GCC Financial Cards and Payments Market - By Type

By type, GCC financial cards and payments market is segmented into Card, Credit Card, Debit Card, Charge Card, and Prepaid Card.

GCC Financial Cards and Payments Market - By Type of Payments

Based on type of payments, GCC financial cards and payments market is divided into B2B, B2C, C2C, C2B, E-Commerce Shopping, and Payments at POS Terminals. Customer to Business (C2B) segment acquired the highest market share in the GCC Financial Cards and Payment industry in 2021. The increased usage of the internet and cellphones has fueled the region's e-commerce activity. E-commerce shopping has grown in popularity in the UAE. Consumers' growing preference for online purchasing because it provides a simple, engaging, and secure digital experience, as well as an increase in cashless payment use and the COVID-19 pandemic, are projected to drive market growth.

GCC Financial Cards and Payments Market - By Type of Transaction

Based on type of transaction, GCC financial cards and payments market is divided into Domestic and Foreign segments.

GCC Financial Cards and Payments Market - By Card Issuing Institution

Based on card issuing institution, GCC financial cards and payments market is split into Banking and Non-Banking segments.

GCC Financial Cards and Payments Market - By Region

Geographically, GCC financial cards and payments market covers Saudi Arabia, UAE, Qatar, Bahrain, Kuwait, and Oman. During the forecast period, the UAE is expected to hold the major market share. It is mostly due to the country's large shopping complexes, the establishment of luxury brands, and an abundance of goods to buy, which encourages the use of financial cards and payments to complete transactions across locations conveniently. Country's large influx of visitors, pilgrims, and migrants is increasing demand for these transactional services in commercial areas such as hotels, restaurants, cafes, shopping malls, retail stores, online platforms, and other sites. As a result, the demand for QR-code-based payment systems is growing, supporting the expansion of the UAE Financial Cards & Payments Market.

Competitive Landscape

Major players operating in GCC financial cards and payments market include Visa, Mastercard, American Express, Citibank, HSBC, PayPal express checkout, HDFC Bank, Diners Club, Barclays, and Hyperpay. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

By Type
Card
Credit Card
Debit Card
Charge Card
Prepaid Card

By Type of Payments
B2B
B2C
C2C
C2B
E-Commerce Shopping
Payments at POS Terminals

By Type of Transaction
Domestic
Foreign

By Card Issuing Institution
Banking
Non-Banking

By Country
Saudi Arabia
UAE
Qatar
Bahrain
Kuwait
Oman