Growing digitalization and boost from government will drive the growth of Saudi Arabia Bill Payments Industry at a CAGR of ~12.7% during 2020-25: Ken Research

Growth of digital payments solutions, along with rising fintech ecosystem is further expected to give a boost to numerous entities that facilitate online payments in the country. 

Saudi Vision 2030:

As a part of the Vision 2030 strategy, Saudi Arabia has targeted much greater use of digital payments, including aiming for 70% of payments being cashless by 2030. The vision is in accordance with the development of technological infrastructure of the economy which would act as catalyst for the m-wallet players looking to integrate the payment space. Saudi’s national vision is aimed at transforming Saudi Arabia’s national economy and to achieve the Financial Sector Development Program to promote financial inclusion.

National Fintech Strategy:

National Fintech Strategy contributes in supporting the development of new establishments under the digital payment ecosystem. Private players have an opportunity to receive funding and create holistic electronic bill payment platforms. Between 2018 and 2020, the number of active FinTechs in Saudi Arabia has grown by a CAGR of ~147%. Providing financial technology laboratories and solutions in a sandbox to develop fintech products and launching financial technology accelerator programs are some of the developments that will drive the industry.

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Growth of Bill Payments Industry

In Saudi Arabia, the major categories of bill payments include Financial, Education, Transportation, Telecom and Utility Services, Government Services etc. Telecom and Utilities has the highest transaction volume of ~67.2% of the total transaction volume in 2020. Bill payments industry grew at a CAGR of ~20% from 2016-2020 on the basis of transaction value. Bill Payments through SADAD in Saudi Arabia has increased at a CAGR of ~19% in terms of transaction value and ~8.9% in terms of transaction volume. Due to the advent of COVID-19, a shift in consumer preference towards utilizing online payment platforms have been witnessed. Payment platforms are diversifying their portfolios to allow digital bill payment services.

Future Outlook of the Industry:

Given the backdrop of increase in volume and value of online transactions, analysts at Ken Research expects the bill payment industry to grow at a CAGR of ~12.7% during 2020-25F in terms of transaction value. During this period, value of transactions is expected to peak in 2025 which will be driven by the opening of the market for foreign MTOs and growing adoption of digital solutions.

The publication titled ‘Saudi Arabia International Remittance and Bill Payments Industry Outlook to 2025: Driven by Growth in Expat Population and Consumer’s Shifting preference towards Digital Payment Services’ covers the overview of remittance industry by analyzing historical remittance statistics and corresponding change in social-demographic indicators in Saudi Arabia. With ~37% of expat population, the Saudi Arabia Remittance market is anticipated to grow at a CAGR of ~2.8% during the forecast period FY’20-FY’25. Further, the report covers overview of the bill payments industry in Saudi Arabia and the segmentation of bill payments by payment channels used by consumers. Bill payments industry recorded a positive CAGR of ~20% in between 2016 and 2020, and is further expected to grow at a CAGR of ~12% during 2020-2025. The report concludes with analyst recommendations to enhance the growth of digital bill payment services along with case studies of different m-wallet players globally.

Key Segments Covered in Saudi Arabia International Remittance and Bill Payments Industry

Saudi Arabia International Remittance Industry

By Type of Remittance

·      Inbound

·      Outbound

Saudi Arabia Bill Payments Industry

By Type of Payment Channel Used

·      SADAD

·      Other Channels

By Service

·      Telecom and Utilities

·      Government Services

·      Financial and Insurance

·      Transportation

·      Education

·      Technology, Media & Entertainment

Key Target Audience

·      Banks Providing Remittance Services

·      Bill Payments Industry Players

·      M-Wallet Players

·      Government Bodies

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Time Period Captured in the Report:

·      Historical Period: 2016-2020

·      Forecast Period: 2020-2025F

International Remittance and M-Wallet Players in Saudi Arabia

Remittance Arms of Banks

·      Tahweel Al Rajhi (Al Rajhi Bank)

·      Enjaz (Al Bilad Bank)

·      Quick Pay (Saudi National Bank)

·      Telemoney (Arab National Bank)

·      Fawri Money Transfer (Bank Al Jazira)

·      EZ Transfer (Riyad Bank)

·      Ersal Money Transfer (Operates Independently with Alnima Bank)

·      STC Pay

Private M-Wallet Companies

·      Stc Pay

·      Hala Wallet

·      BayanPay

·      Urpay

Key Topics Covered in the Report

·      Overview of International Remittance Industry in Saudi Arabia

·      Market Size of International Remittance Industry in Saudi Arabia (On the basis of Total Remittance Value, On the basis of Revenue from Remittance)

·      Saudi Arabia International Remittance Industry segmentation (By Inbound and Outbound Transactions)

·      Cross Comparison of Remittance Arms of banks on Operational and Financial Parameters (Monthly Number of Outbound Transactions, Number of Branches, Number of Remittance Centers, Major Partners, Outbound Transaction Value, Number of Outbound Transactions, Revenue from Outbound Transactions, Corridor-wise Outbound Transactions)

·      Company Profile of Remittance Arms of banks (Overview, Products and Services, USP, Business Strategies, Branch wise Operational Performance, Cumulative Financial Performance, Recent Developments)

·      Growth Drivers and Challenges to Saudi Arabia International Remittance Industry

·      Industry trends and developments

·      Rules and Regulations by Government Bodies

·      Impact of COVID-19 and Future Outlook of Industry

·      Porter 5 Forces Analysis in Saudi Arabia International Remittance Industry

·      Upcoming Technological Innovations in Saudi Arabia International Remittance Industry

·      Overview of Bill Payments Industry in Saudi Arabia

·      Market Size of Bill Payments on the basis of Transaction Value and Volume

·      Categories of Bill Payments

·      Market Segmentation of Bill Payments by Type of Payment Channels Used (SADAD and Other Channels)

·      Market Segmentation of Bill Payments by Type of Service (Telecom and Utilities; Government Services; Financial and Insurance; Transportation; Education; Technology, Media & Entertainment)

·      Overview of M-Wallet Industry

·      Ecosystem of M-Wallet Players

·      Analysis of Bill Payment and M-Wallet Industry

·      Company Profiles of M-Wallet Players (Hala, BayanPay, Urpay)

·      Case Study of M-Wallet Players (Paytm, stc pay, and Venmo)

·      Snapshot on Wages Protection System

·      Proposed Retail Based Business Model in Domestic Remittance Industry in Saudi Arabia

For more information on the research report, refer to below link:

صناعة التحويلات الدولية في المملكة العربية السعودية: كين للأبحاث (kenresearch.com)

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