As per MRFR analysis, the GCC Payment Service Market Size was estimated at 365.33 (USD Million) in 2023.The GCC Payment Service Market is expected to grow from 441.31(USD Million) in 2024 to 1,543.9 (USD Million) by 2035. The GCC Payment Service Market CAGR (growth rate) is expected to be around 12.058% during the forecast period (2025 - 2035).
The GCC Payment Service Market has been experiencing a significant transformation driven by various key market drivers. The rapid adoption of digital payment solutions is largely fueled by increasing smartphone penetration and internet accessibility across the Gulf Cooperation Council countries. Governments in the region are actively promoting cashless economies, which is evident in initiatives like Saudi Arabia's Vision 2030 and the UAE's National Payments Strategy.Â
These initiatives aim to enhance financial inclusion and diversify national economies by encouraging the use of digital payment platforms. Opportunities to be explored include the growing fintech sector within the GCC, which presents a fertile ground for innovation in payment solutions.New financial technology companies are popping up to meet the changing needs of customers for quick, safe, and easy ways to pay.Â
In addition, partnerships between banks and fintech start-ups are making it easier for both consumers and businesses to use more services, which makes transactions go more smoothly. Recent trends show that people are moving toward contactless payments. This is because people want to be safe when they make purchases and because of recent global health concerns. As stores and service providers start using point-of-sale systems that accept contactless payments, people are starting to prefer payment methods that are easier to use.
Additionally, the rise of e-commerce within the GCC, accelerated by the pandemic, has driven demand for diversified payment options, making it essential for businesses to adapt accordingly to capture this growth. Overall, the integration of advanced technologies and regulatory support is setting the stage for notable advancements in the GCC Payment Service Market.
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
The GCC Payment Service Market is experiencing significant growth driven by the rapid digital transformation witnessed across regional economies. Governments in the Gulf Cooperation Council member states, including Saudi Arabia and the UAE, are heavily investing in digital infrastructure as part of their economic diversification strategies, such as Saudi Vision 2030 and the UAE Vision 2021. These initiatives aim to reduce reliance on oil and foster innovation in sectors like fintech and digital payment services.
In a report by the Gulf Cooperation Council Secretariat, it was noted that digital adoption in the region saw a remarkable increase of 70% in the last four years, with internet penetration rates surpassing 99%. This surge is expected to drive a higher demand for sophisticated payment solutions, creating opportunities for key market players like PayFort and Network International to innovate and expand their offerings. Additionally, a significant shift in consumer behavior, with a 45% increase in online shopping in the last year alone as reported by the Ministry of Commerce and Investment in Saudi Arabia, further underscores the crucial role of digital payment services in catering to the evolving preferences of consumers in the GCC market.
The GCC Payment Service Market is being propelled by the remarkable growth of the e-commerce sector within the region. A substantial increase in online retail activities has led to a surge in demand for seamless payment solutions. According to the recent statistics from the UAE Ministry of Economy, the e-commerce market in the UAE alone is projected to reach USD 27 billion by 2025, growing at a staggering rate of 23% annually.Â
This growth is matched by an increased preference for cashless transactions, compelling payment service providers to adapt and create user-friendly solutions.Major companies like Amazon and Noon have established significant operations in the area, further driving demand for efficient payment systems that enhance customer experience. This trend is expected to continue as consumer comfort with online purchases increases, and as new players enter the market with innovative payment solutions tailored for e-commerce.
Government initiatives across GCC countries are significantly promoting the shift towards cashless transactions, a crucial driver for the expansion of the GCC Payment Service Market. Notably, the Central Bank of the UAE has introduced the 'Payments Systems Strategy' designed to encourage electronic payments and enhance the efficiency of the payments ecosystem.Â
Additionally, Saudi Arabia's Financial Sector Development Program aims to raise the volume of non-cash transactions to 70% by 2030.Such aggressive targets have cultivated an environment conducive to innovation and growth in digital payment services. Reports indicate that in Saudi Arabia, cashless transactions increased by 40% in the past year as a direct result of these initiatives, showcasing an industrial transformation aligned with international standards. This shift not only opens the market for local payment providers but also attracts international players looking to establish a foothold in a rapidly changing payment landscape.
The surge in smartphone penetration across the GCC region is notably influencing the growth of the GCC Payment Service Market. With smartphone penetration expected to reach over 90% by 2025 in the UAE and Saudi Arabia, as per regional telecommunications authorities, mobile payment solutions are rapidly gaining traction. Major mobile wallet services like Apple Pay, Samsung Pay, and local options such as STC Pay and Beam are witnessing rising adoption rates. A recent survey indicated that 56% of consumers in the GCC now prefer mobile wallets over conventional banking methods for everyday transactions, highlighting a profound shift in payment preferences.Â
This transformation is further propelled by the introduction of user-friendly interfaces and enhanced security measures, fostering consumer confidence and encouraging widespread acceptance. As a result, traditional banks are increasingly partnering with fintech startups to offer innovative mobile payment solutions, ultimately creating a vibrant and competitive market landscape.
The Service segment of the GCC Payment Service Market has emerged as a critical component of the financial ecosystem, demonstrating significant growth amid the region's digital transformation. As of 2024, the overall market is poised for remarkable expansion, reflecting trends in technological adoption and a push towards cashless transactions. Within this segment, various categories such as Professional, Managed, and Platform services play vital roles in enhancing payment solutions. Professional services, which include consulting and advisory functions, are increasingly sought after as businesses navigate the complexities of digital payments and compliance with local regulations.
Managed services provide businesses with operational efficiency by outsourcing their payment processing needs, allowing them to focus on core activities, while ensuring security and scalability. In addition, Platform services are becoming paramount due to their ability to integrate multiple payment methods into a single interface, thereby improving the user experience for both merchants and consumers. These services not only facilitate smoother transactions but also help businesses leverage data insights to enhance customer engagement and loyalty.
As the GCC Payment Service Market continues to evolve, the strategic importance of these service offerings will likely intensify, driven by factors such as rapid urbanization, increasing consumer demand for convenience, and government initiatives aimed at promoting digital economies. The market's dynamics reflect the region's aspirations for a diversified economic environment, where payment services are equipped to meet the diverse needs of an increasingly tech-savvy population.Â
Furthermore, the GCC region's focus on becoming a global financial hub imposes a responsibility on payment service providers to enhance their offerings, ensuring they meet world standards while also catering to local preferences.As the competition intensifies, companies will need to innovate continuously, making these service divisions crucial for long-term sustainability and growth in this rapidly evolving landscape. Overall, the Service segment within the GCC Payment Service Market is well-positioned to capitalize on emerging trends and address the evolving requirements of businesses and consumers alike.
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
The GCC Payment Service Market is experiencing a notable transformation across various verticals, driven by technological advancement and increasing consumer demand for convenience. In this market, the Banking, Financial Services, and Insurance (BFSI) sector is significant, facilitating seamless transactions and enhanced security measures, which assure users amidst rising digital adoption. Retail is another critical sphere benefiting from the surge in e-commerce, as merchants seek efficient payment solutions to streamline operations and improve customer experiences. The Healthcare vertical is also gaining traction, focusing on payment services that enhance billing processes, thereby improving patient satisfaction and administrative efficiency.Â
Additionally, the Media and Entertainment segment thrives on robust payment solutions that support subscription models and digital content distribution, catering to a growing audience. Furthermore, the Hospitality sector sees a growth in payment innovations, enabling easier booking, check-in, and customer interactions, which are essential to attracting and retaining clients. Collectively, these sectors represent pivotal areas in the GCC Payment Service Market, highlighting the region's commitment to enhancing digital payment solutions across diverse industries. The surge in demand for integrated payment systems reflects the broader trends within the GCC, which prioritize digital transformation and consumer-centric services.
The GCC Payment Service Market has witnessed substantial growth and transformation, driven by rapid technological advancements, a surge in digital financial transactions, and an increasing shift towards cashless economies. As the region continues to embrace digital payment solutions, competition among service providers has intensified, leading to innovative offerings that cater to both consumers and businesses alike. This competitive landscape is characterized by a diverse array of players, each vying for market share while balancing compliance with regulatory frameworks and consumer preferences. Companies are increasingly leveraging data analytics, artificial intelligence, and blockchain technology to enhance user experiences and streamline operations, thereby positioning themselves strategically within this evolving market.
Emirates Payment Gateways has established itself as a formidable player in the GCC Payment Service Market, enjoying robust market presence and a significant share of the regional payment processing space. The company is noted for its high transaction reliability, user-friendly interfaces, and a broad range of payment solutions tailored to both e-commerce and brick-and-mortar businesses. Its strengths lie not only in its advanced technological infrastructure but also in its comprehensive partnerships with financial institutions and businesses across various sectors, which facilitate seamless transactions and enhance service offerings.Â
Emirates Payment Gateways is committed to continuous innovation, enabling it to maintain a competitive edge by adapting quickly to market demands and regulatory changes within the GCC ecosystem. Saudi Payments has carved out a prominent position in the GCC Payment Service Market, distinguished by its suite of comprehensive digital payment solutions designed to meet the evolving needs of consumers and merchants alike. The company offers a diverse range of services, including real-time payments, digital wallet solutions, and integrated payment gateways that streamline transactions for both consumers and businesses. Its strengths are further enhanced by its focus on security and compliance, ensuring a safe transaction environment that bolsters consumer trust.Â
Additionally, Saudi Payments has been active in pursuing strategic mergers and acquisitions, allowing it to expand its service capabilities and penetrate new market segments within the GCC. By partnering with various financial institutions and leveraging cutting-edge technology, Saudi Payments continues to solidify its market presence and enhance its competitive position in a rapidly changing payment landscape.
Recent developments in the GCC Payment Service Market have highlighted significant advancements and shifts. In August 2023, Saudi Payments launched a new digital payment service aimed at enhancing e-commerce transactions, indicating a growing emphasis on digital financial solutions across the region. Additionally, Emirates Payment Gateways has been expanding its portfolio to support contactless payments, catering to the increasing consumer demand for convenience.Â
Notably, in September 2023, National Commercial Bank announced a collaboration with HyperPay, enhancing their payment processing capabilities and fostering innovation. In October 2023, Qatar National Bank unveiled a new mobile payment solution, aligning with the GCC's trend towards fintech growth. There have also been notable mergers; Bank Muscat acquired a significant stake in Snowdrop Solutions, aiming to boost its digital service offerings, an acquisition publicly acknowledged in July 2023.Â
The valuation of companies within the GCC Payment Service Market reflects this growth, particularly driven by increased digital transaction volumes, expected to rise by over 20% in 2024. Over the past few years, key initiatives have been taken by Fawry and PayFort, significantly transforming the digital landscape within the GCC, with substantial investments reported in November 2022.
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 365.33 (USD Million) |
| MARKET SIZE 2024 | 441.31 (USD Million) |
| MARKET SIZE 2035 | 1543.9 (USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 12.058% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Million |
| KEY COMPANIES PROFILED | Emirates Payment Gateways, Saudi Payments, National Commercial Bank, Bank Muscat, HyperPay, Snowdrop Solutions, Dabbl, Qatar National Bank, Network International, Kuwait Finance House, PayFort, Fawry, CashU, Tamweelcom, Al Hilal Bank |
| SEGMENTS COVERED | Service, Vertical |
| KEY MARKET OPPORTUNITIES | Digital wallet adoption growth, Increasing e-commerce transactions, Mobile payment innovations, Cross-border payment services expansion, Integration of AI and blockchain |
| KEY MARKET DYNAMICS | Digital wallet adoption, Regulatory framework evolution, Increasing e-commerce transactions, Strong consumer preference shift, Growing fintech innovation |
| COUNTRIES COVERED | GCC |
Frequently Asked Questions (FAQ) :
The GCC Payment Service Market is expected to be valued at 441.31 million USD in 2024.
By 2035, the market is expected to reach 1543.9 million USD.
The expected CAGR for the GCC Payment Service Market during this period is 12.058%.
The Managed service segment is projected to have the largest market share, valued at 550.87 million USD in 2035.
Major players in the market include Emirates Payment Gateways, Saudi Payments, and Qatar National Bank among others.
The Platform service segment is expected to be valued at 517.77 million USD in 2035.
The Professional service segment is valued at 132.42 million USD in 2024.
Digital payment adoption and increased investment in payment infrastructure are key emerging trends.
Regulatory compliance and cybersecurity concerns are significant challenges in the market.
Global economic conditions are driving demand for more efficient payment solutions within the region.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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