Financial Cards and Payments in Middle East and Africa

February 2024

While consumers in the Middle East and Africa region continue to increase their usage of card payments and the digitalisation of the financial industry also continues to advance, cash still remains important in many countries, especially the African nations. However, electronic and card payments are expected to continue gaining ground in the coming years, particularly given the stated ambitions of many countries to become cashless economies.

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Key Findings

Saudi Arabia approving rising numbers of digital banking licences

There has been an increasing number of approvals for the licensing of digital banks in Saudi Arabia, including D360 Bank, STC Bank and the Saudi Digital Bank. Banking platforms such as Meem and Xpence also provide digital solutions, such as Sharia-compliant banking services.

BNPL proving popular in South Africa’s cost-of-living crisis

BNPL services have been gaining traction among price-sensitive South Africa shoppers seeking affordable payment solutions as an alternative to credit cards. Moreover, the prevalence of cash across informal activities patronised by lower-income groups continues to delay the country’s move towards a cashless society.

FibiPay mobile wallet app introduced in Israel

The First International Bank of Israel’s FibiPay is described as a revolutionary mobile wallet app similar to popular e-wallets like Google Wallet. FibiPay enables seamless money transfers and purchases directly from smartphones, eliminating the need for physical credit or debit cards. This aligns with the government's policy of enhancing competition within the financial sector.

Nigeria will continue its cashless push

Nigerian consumers will continue to shift towards card payments, with debit cards set to remain by far the most common type of payment card. The Central Bank of Nigeria will continue to drive card payments through its cashless agenda, with the new national card AfriGo slated to result in lower processing fees.

Scope
Key findings
Middle East and Africa has the lowest per capita card payment transactions value
More consistent growth rates expected in the post-pandemic period
Middle East and Africa has the lowest p ersonal payment transactions per capita figure
More consistent growth expected after the fluctuations caused by COVID-19 and inflation
Major declines in cash usage in Nigeria, with cards gaining favour in Saudi Arabia
Debit cards generally more popular than credit cards
Remote mobile payments tend to lead or even dominate m-commerce payment value
Digital wallets still largely the domain of middle- and high-income South African consumers
Charge cards account for most new growth in Israel over 2018-2023
Card payment transactions add the bulk of the new value added over 2018-2023
Debit cards dominate the new value added in card payments over 2018-2023
Very concentrated competitive landscapes across the region
Visa and Mastercard tend to dominate the card operators landscape
Visa and Mastercard present across the region
First International Bank of Israel’s FibiPay to offer popular e-wallet services
Positive annual growth expected for card payment transactions value over 2023-2028
Credit cards will remain the domain of more affluent consumers in Nigeria
Continued shift from cash to card expected in personal payments
Saudi Arabia targeting 70% non-cash transactions by 2030
Mobile proximity and remote payments will both record strong forecast period growth
Remote payments will continue to dominate overall m-commerce transactions value
Egypt: Market Context
Egypt: Card Payments and Competitive Landscape
Egypt: Consumer Payments and M-commerce
Israel: Market Context
Israel: Card Payments and Competitive Landscape
Israel: Consumer Payments and M-commerce
Morocco: Market Context
Morocco: Card Payments and Competitive Landscape
Morocco: Consumer Payments and M-commerce
Nigeria: Market Context
Nigeria: Card Payments and Competitive Landscape
Nigeria: Consumer Payments and M-commerce
Saudi Arabia: Market Context
Saudi Arabia: Card Payments and Competitive Landscape
Saudi Arabia: Consumer Payments and M-commerce
South Africa: Market Context
South Africa: Card Payments and Competitive Landscape
South Africa: Consumer Payments and M-commerce
United Arab Emirates: Market Context
United Arab Emirates: Card Payments and Competitive Landscape
United Arab Emirates: Consumer Payments and M-commerce

Payments and Lending

This is the aggregation of Financial Cards and Payments, Mobile Payments, Transactions, and Consumer Lending.

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