Saudi Arabia Country Report

Key Topics
Demographics and the economy
Payments environment
Cards market
Mobile payments
Profit pool
The networks
Key retail banks and issuers
Acquiring and processing
Online acquiring
Regulatory and other cards market information

Appendices: Card Payments Data

Appendix I: Demographics and economy

• Demographic and economic indicators
• Ownership of key consumer devices
• Internet usage by population

Appendix II: Payments environment

• Access points
• Account penetration
• Consumer payment trends

Appendix III: Cards market

• Total cards payment metrics
• Contactless cards metrics
• Credit card numbers
• Total credit cards metrics
• Credit cards profitability indicators
• Debit cards numbers
• Debit cards metrics
• Prepaid/e-money cards metrics

Appendix IV: Mobile payments

• Mobile proximity payment metrics

Appendix V: Profit pool

• Profit pool

Appendix VI: The networks

• Networks' credit card market shares
• Networks' credit card numbers
• Networks' credit card billed volume
• Networks' number of credit card transactions
• Networks' average credit card transaction value
• Credit card interchange fees by network
• Networks' debit card market shares
• Networks' debit card numbers
• Networks' debit card billed volume
• Networks' number of debit card transactions
• Networks' average debit card transaction value
• Debit card interchange fees by network

Appendix VII: Retail banks and issuers

• Key credit card issuers market shares by credit card numbers
• Key issuers market shares in credit card outstandings
• Key debit card issuers market shares by debit card numbers

Appendix VIII: Acquiring and processing

• Merchant acquirer credit card market share
• Credit card merchant service charges
• Merchant acquirer debit card market share
• Debit card merchant service charges
• Credit card issuer/issuing processor relationships
• Credit card acquirer/acquiring processor relationships
• Credit card issuing processor market shares by card numbers
• Credit card acquiring processor market shares by the number of POS transactions

Appendix IX: Online acquiring

• Online merchant acquirer market share

Demographics and Economy:
Nearly 13 million expatriates live and work in Saudi Arabia, making it the third-largest country in terms of expatriate population after the United States and Russia.

Payments Environment:
Traditionally Saudi Arabia has been a cash-reliant market: this dominance has extended into the rapidly developing e-commerce sector as cash-on-delivery is the preferred payment method. However, the authorities are determined to change this situation.

Cards market:
Saudi Arabia differs from most Gulf countries in that debit cards are more widespread and more used for payments than credit cards. Debit cards were used for around 80% of card purchases in 2018.

Mobile Payments:
In July 2018 Mada launched the first significant mobile payments service in the country, Mada Pay. Mada Pay facilitates NFC mobile payments on Android phones. It supports Mada, Visa and Mastercard cards issued by supporting banks.

Profit Pool:
Saudi Arabia's credit cards industry is highly profitable and is one of the few global markets with a profit per card greater than $100. There has been a move towards Premium cards as issuers have concentrated more on affluent customers who are high spending and less risky.

Card Networks:
Saudi Arabia has a competitive credit cards market, with three of the major international brands – Visa, Mastercard and American Express – having a presence. American Express has a market share of 3.5% of cards in issue but has the highest average billed volume per credit card in Saudi Arabia.

Key Retail Banks and Issuers:
28 banks were licensed to provide banking services in Saudi Arabia as of the end of 2018. The country's retail banking market is dominated by the 12 local banks: the five largest banks collectively held 74% of total bank branches.

Acquiring and Processing:
Merchant acquiring operations are heavily subsidised by the banks' credit card issuing business and corporate banking business. Banks typically offer competitive rates, which in some instances are below cost, on merchant acquiring.

Online Acquiring:
E-commerce in Saudi Arabia is in € its early stages of development but is rapidly expanding. Online sales represent approximately 0.8% of total retail sales in the country, but this is also expected to increase.

Regulatory and Markets Information:
A Value-Added Tax of 5% on all goods and services came into force at the beginning of 2018 to boost non-oil income and address yawning fiscal deficits caused by years of low oil prices. The measure ends decades of tax-free living for residents and most businesses.