Overview of the Cards & Payments Industry
For many years, cards and payments have always been under the trend in multiple nations. This is all because, in the modern era, cashless transactions are getting promoted, and physical currencies are getting sideline, all thanks to a rapid surge in digitalization. For instance, the financial surrounding of one of the GCC countries, Saudi Arabia, has witnessed a massive transformation in their economy only because of the cashless transactions policy they have adopted.
A major proportion of the people residing in Saudi Arabia emphasize modernization and electronic transactions in their day-to-day life, which is why their active contribution to the thriving of the cards and payments sector displays a clear picture in front of all the other countries. But hold on for a while. Have you ever thought about why cards & payments have now become a prime need of the hour and what can be the reasons for their demand and discussion in one of the significant GCC countries?
As the term states, cards & payments mean either the payments can be made through cards or by other payment instruments. To put forth in general terms, Card Payment is considered a convenient payment method in which customers pay a merchant or Smart2Pay, who is acting on their behalf, by providing the merchant with their card number. In addition, the payments can be made either on a domestic or an international level.
Types of Cards Available for Payment
Overall, there are five types of cards which might include Debit Cards, Fleet/Fuel Cards, ATM Cards, Prepaid Cards, and Credit Cards. On the other hand, a wide variety of electronic payment instruments and techniques, such as mobile payments, internet payment gateways, net banking, UPI and so on, renders organizations and normal humans to conduct transactions, send money, and manage their finances online within a blink of an eye with total convenience.
Moreover, to understand how the cards & payments industry is functioning and rising in Saudi Arabia, there is the newest report that was launched by Markntel Advisors in which, rather than just providing users with the growth prospects, opportunities, obstacles, and other factors about the market, they have briefly mentioned about the factual information and accurate numbers. Along with this, their report briefs that the Saudi Arabia Cards & Payments Market is projected to grow at a CAGR of around 8.40% during the forecast period, i.e., 2023-28.
Applications of Cards & Payments
Consumers frequently make use of debit and credit cards for regular transactions, both online and in physical places. Since cards are regarded as a popular form of payment, they are utilized by plenty of the Saudi population for the primary motive of security and ease of use.
A major populace of Saudi Arabia has begun to employ cards and online payment gateways to make purchases online due to the rapid expansion of e-commerce. Hence, this initiative of them has made the use of physical currencies more archaic. Furthermore, the development of safe payment gateways and the inclusion of online payment methods on a wide range of e-commerce platforms have made this trend more prevalent.
Payments Through Smartphone Devices
The growing appeal of smartphones has sparked a boom in mobile payment software. Users can make payments with their mobile devices via the multi-featured services, including Apple Pay, Samsung Pay, and other regional alternatives like STC Pay and the mobile app of Al Rajhi Bank. Over the years, these features have successfully knocked on the doors of simplicity and seamless transactions.
Public Sector Services
For a number of services, such as electricity bills, water bills, penalties, fines, as well as government fees, the Saudi Arabian government additionally embraces digital payments. Citizens’ transactions have been made more straightforward as a consequence, and owing to this, the interference of physical currencies has been diminished.
Enlisting the Growth Potential of Cards & Payments Method in Saudi Arabia
Due to a plethora of variables, Saudi Arabia’s cards and payments sector is projected to snowball significantly very soon. These variable include:
Based on the vision intended for 2030 plan, Saudi Arabia is immensely concerned and is stepping towards Digitalization by taking every crucial steps. Additionally, Incentives for using electronic payment methods have been established by the push for a digital economy, opening the door for more development and innovation in this GCC’s listed country.
Gen Z Audience with Technological Minds
Young, tech-savvy people who are early adopters of digital technologies are plentiful in Saudi Arabia. The growing acceptability and use of digital payments is influenced by this demographic trend.
On a concluding note, there is a long list of beneficial aspects of the cards and payments sector that can offer never-ending lucrative for the audience of Saudi Arabia. For instance, the industry’s wide range of applications, including consumer payments, e-commerce, mobile payments, and government services, highlight its versatility and advancing importance. However, while the industry offers numerous benefits, such as convenience, security, and financial inclusion, challenges related to cybersecurity and technological barriers also need to be addressed within a certain period of time.