Saudi Arabia’s Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape

The Saudi Arabian economy was largely resilient to the global financial crisis, mainly due to a sound banking and financial system. The system was well capitalized with domestic banks maintaining a capital adequacy ratio of 17.9% at the end of 2013, as a result of which credit was easily available to corporate sectors. Consequently, business activity was vibrant and confidence was high, which reflected positively on employment levels, income and the overall card payments channel.

The Saudi Arabian card payments channel grew at a healthy pace, both in terms of volume and value during the review period (2009−2013). In terms of the number of cards in circulation, the channel increased from 17.2 million cards in 2009 to 26.8 million in 2013, at a review-period CAGR of 11.75%. Over the forecast period, the card payments channel is anticipated to register a CAGR of 8.66%, to reach 42.2 million cards in 2018.

In terms of transaction value, the card payments channel increased at a review-period CAGR of 15.28%. The card payments channel is anticipated to increase at a forecast-period CAGR of 5.44%.

While the debit cards category occupied the largest channel share of 57.7% in 2013, in terms of the number of cards in circulation, the prepaid and credit card categories are eroding the share of the debit cards category, which is anticipated to decrease to 52.3% in 2018. With government efforts to attract the non-banked population into the country’s banking system, domestic and foreign banks are issuing prepaid cards in large numbers. In 2013, the number of prepaid cards in circulation was 8.3 million, and is anticipated to reach 16.4 million by 2018.

E-commerce is increasing as a result of improvements in telecommunication infrastructure, payment and security systems, and an increased consumer willingness to shop online. E-commerce registered a review-period CAGR of 35.71%.

Scope

• GlobalData's 'Saudi Arabia's Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape' report provides a comprehensive analysis of Saudi Arabia's cards and payments industry.

• It provides current values for Saudi Arabia's cards and payments industry for 2013, and forecast figures for 2018.

• It details the different economic, infrastructural and business drivers affecting Saudi Arabia's cards and payments industry.

• It outlines the current regulatory framework in the industry.

• It details the marketing strategies used by various banks and other institutions.

• It profiles the major banks in Saudi Arabia's cards and payments industry.

Key Highlights

• The Saudi Arabian card payments channel grew at a healthy pace, both in terms of volume and value during the review period. In terms of the number of cards in circulation, the channel increased from 17.2 million cards in 2009 to 26.8 million in 2013, at a review-period CAGR of 11.75%. Over the forecast period, the card payments channel is anticipated to register a CAGR of 8.66%, to reach 42.2 million cards in 2018.

• In terms of transaction value, the card payments channel increased at a review-period CAGR of 15.28%. The card payments channel is anticipated to increase at a forecast-period CAGR of 5.44%. While the debit cards category occupied the largest channel share of 57.7% in 2013, in terms of the number of cards in circulation, the prepaid and credit card categories are eroding the share of the debit cards category, which is anticipated to decrease to 52.3% in 2018. With government efforts to attract the non-banked population into the country’s banking system, domestic and foreign banks are issuing prepaid cards in large numbers. In 2013, the number of prepaid cards in circulation was 8.3 million, and is anticipated to reach 16.4 million by 2018.

• Saudi Arabia’s well-developed telecommunications infrastructure allowed it to record one of the highest mobile penetration rates in the Middle East and North Africa (MENA) region in 2013. Banks such as Al Rajhi Bank, Samba Financial Group and The National Commercial Bank (NCB) partnered with merchants and online retailers to provide secure payment facilities, enabling customers to pay via mobile phones or online. Consequently, mobile payments are expected to rise at a forecast-period CAGR of 46.48%.

Reasons to buy

• Make strategic business decisions using top-level historic and forecast market data related to Saudi Arabia's cards and payments industry and each market within it.

• Understand the key market trends and growth opportunities within Saudi Arabia's cards and payments industry.

• Assess the competitive dynamics in Saudi Arabia's cards and payments industry.

• Gain insights in to the marketing strategies used for selling various card types in Saudi Arabia.

• Gain insights into key regulations governing Saudi Arabia's cards and payments industry.

Companies mentioned

Al Rajhi Bank

The Saudi British Bank

Samba Financial Group

Riyad Bank

The National Commercial Bank

Arab National Bank

MasterCard

Visa

American Express

Diners Club

Table of Contents

1 Executive Summary

2 Analysis of Market Environment, Key Trends and Drivers

2.1 Payment Infrastructure and Emerging Technologies

2.1.1 Rising internet penetration

2.1.2 Growing mobile payments

2.1.3 Automated teller machines (ATMs)

2.1.4 Point-of-sale (POS) terminals

2.1.5 Adoption of EMV infrastructure

2.2 Business Drivers

2.2.1 Growth in retail industry

2.2.2 Growth in e-commerce

2.3 Economic Drivers

2.3.1 GDP growth

2.3.2 GDP per capita

2.3.3 Inflation

3 Cards and Payments Industry Share Analysis

3.1 Industry Overview

3.1.1 Credit transfer

3.1.2 Check payments

3.1.3 Card transactions

3.1.4 Cash transactions

3.1.5 Direct debit

4 Regulatory Framework and Card Fraud Statistics

4.1 Regulatory Framework

4.1.1 Overview

4.1.2 Payment systems in the country

4.1.3 Anti-money laundering and terrorism financing (AML/CTF)

4.1.4 Foreign direct investment (FDI) regulations

4.2 Card Fraud Statistics

4.2.1 Card-not-present fraud

4.2.2 Lost or stolen card

4.2.3 Counterfeit card fraud

4.2.4 Card ID theft

5 Emerging Consumer Attitudes and Trends

5.1 Industry Segmentation and Targeting

5.1.1 Retail segment

5.1.2 Corporate segment

5.2 Travel and Tourism Spending

5.2.1 Outbound tourist trips

5.2.2 Outbound tourist spending

5.3 Retail Card Spending

5.3.1 Analysis by product categories

5.3.2 Analysis by retail channel

6 Analysis of Card Payments and Growth Prospects

6.1 Channel Share Analysis by Card Category

6.2 Size of and Forecast for the Card Payments Channel

6.2.1 Analysis by number of cards in circulation

6.2.2 Analysis by transaction value

7 Analysis of Credit Card Payments and Growth Prospects

7.1 Overall Category Size and Forecast

7.1.1 Analysis by number of cards in circulation

7.1.2 Analysis by transaction value

7.1.3 Analysis by transaction volume

7.2 Transaction Share Analysis by Channel

7.2.1 Analysis by transaction value

7.2.2 Analysis by transaction volume

7.3 Personal Credit Cards Segment Size and Forecast

7.3.1 Analysis by number of cards in circulation

7.3.2 Analysis by transaction value

7.3.3 Analysis by transaction volume

7.4 Commercial Credit Cards Segment Size and Forecast

7.4.1 Analysis by number of cards in circulation

7.4.2 Analysis by transaction value

7.4.3 Analysis by transaction volume

7.5 Competitive Landscape

7.5.1 Scheme share analysis

7.5.2 Issuer share analysis

8 Analysis of Debit Card Payments and Growth Prospects

8.1 Overall Category Size and Forecast

8.1.1 Analysis by number of cards in circulation

8.1.2 Analysis by transaction value

8.1.3 Analysis by transaction volume

8.2 Transaction Share Analysis by Channel

8.2.1 Analysis by transaction value

8.2.2 Analysis by transaction volume

8.3 Competitive Landscape

8.3.1 Scheme share analysis

8.3.2 Issuer share analysis

9 Analysis of Charge Card Payments and Growth Prospects

9.1 Overall Category Size and Forecast

9.1.1 Analysis by number of cards in circulation

9.1.2 Analysis by transaction value

9.1.3 Analysis by transaction volume

9.2 Transaction Share Analysis by Channel

9.2.1 Analysis by transaction value

9.2.2 Analysis by transaction volume

9.3 Personal Charge Cards Segment Size and Forecast

9.3.1 Analysis by number of cards in circulation

9.3.2 Analysis by transaction value

9.3.3 Analysis by transaction volume

9.4 Commercial Charge Cards Segment Size and Forecast

9.4.1 Analysis by number of cards in circulation

9.4.2 Analysis by transaction value

9.4.3 Analysis by transaction volume

9.5 Competitive Landscape

9.5.1 Scheme share analysis

10 Analysis of Prepaid Card Payments and Growth Prospects

10.1 Overall Category Size and Forecast

10.1.1 Analysis by number of cards in circulation

10.1.2 Analysis by transaction value

10.2 Open-Loop Prepaid Cards Segment Size and Forecast

10.2.1 Analysis by number of cards in circulation

10.2.2 Analysis by transaction value

10.3 Closed-Loop Prepaid Cards Segment Size and Forecast

10.3.1 Analysis by number of cards in circulation

10.3.2 Analysis by transaction value

11 Merchant Acquiring

12 Company Profiles of Card Issuers

12.1 Al Rajhi Bank (ARB)

12.1.1 Key financials

12.1.2 Card portfolio

12.1.3 Strategies

12.2 The Saudi British Bank

12.2.1 Key financials

12.2.2 Card portfolio

12.2.3 Strategies

12.3 Samba Financial Group

12.3.1 Key financials

12.3.2 Card portfolio

12.3.3 Strategies

12.4 Riyad Bank

12.4.1 Key financials

12.4.2 Card portfolio

12.4.3 Strategies

12.5 The National Commercial Bank (NCB)

12.5.1 Key financials

12.5.2 Card portfolio

12.5.3 Strategies

13 Appendix

13.1 Methodology

13.2 Contact GlobalData

13.3 About GlobalData

13.4 GlobalData’s Services

13.5 Definitions

13.6 Disclaimer

List of Tables

Table 1: Saudi Arabian Payment Channels (SAR Billion), 2009–2013

Table 2: Market Entry Strategies of Foreign Banks

Table 3: Saudi Arabian Card Fraud (SAR Million), 2009–2013

Table 4: Saudi Arabian Cards for High-Income Customers by Bank

Table 5: Saudi Arabian Co-branded Cards by Bank

Table 6: Saudi Arabian Travel Cards by Bank

Table 7: Saudi Arabian Cards for Women

Table 8: Saudi Arabian Cards for Online Shoppers

Table 9: Saudi Arabian Cards for Unbanked Population

Table 10: Saudi Arabian Cards Offered for SMEs and Large Corporations by Bank

Table 11: Saudi Arabian Consumer Card Spending by Product Category (SAR Million), 2008 and 2012

Table 12: Saudi Arabian Consumer Card Spending by Retail Channel (SAR Million), 2008 and 2012

Table 13: Saudi Arabian Card Payments Channel by Card Category (Million), 2009–2018

Table 14: Saudi Arabian Card Payments Channel Size by Volume of Cards (Million), 2009–2018

Table 15: Saudi Arabian Card Payments Channel Size by Transaction Value (SAR Billion), 2009–2018

Table 16: Saudi Arabian Card Payments Channel Size by Transaction Value (US$ Billion), 2009–2018

Table 17: Saudi Arabian Credit Cards Category Size by Volume of Cards (Million), 2009–2018

Table 18: Saudi Arabian Credit Cards Category Size by Transaction Value (SAR Billion), 2009–2018

Table 19: Saudi Arabian Credit Cards Category Size by Transaction Value (US$ Billion), 2009–2018

Table 20: Saudi Arabian Credit Cards Category Size by Transaction Volume (Million), 2009–2018

Table 21: Saudi Arabian Personal Credit Cards Segment Size by Volume of Cards (Million), 2009–2018

Table 22: Saudi Arabian Personal Credit Cards Segment Size by Transaction Value (SAR Billion), 2009–2018

Table 23: Saudi Arabian Personal Credit Cards Segment Size by Transaction Value (US$ Billion), 2009–2018

Table 24: Saudi Arabian Personal Credit Cards Segment Size by Transaction Volume (Million), 2009–2018

Table 25: Saudi Arabian Commercial Credit Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 26: Saudi Arabian Commercial Credit Cards Segment Size by Transaction Value (SAR Million), 2009–2018

Table 27: Saudi Arabian Commercial Credit Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 28: Saudi Arabian Commercial Credit Cards Segment Size by Transaction Volume (Thousand), 2009–2018

Table 29: Saudi Arabian Debit Cards Category Size by Volume of Cards (Million), 2009–2018

Table 30: Saudi Arabian Debit Cards Category Size by Transaction Value (SAR Billion), 2009–2018

Table 31: Saudi Arabian Debit Cards Category Size by Transaction Value (US$ Billion), 2009–2018

Table 32: Saudi Arabian Debit Cards Category Size by Transaction Volume (Billion), 2009–2018

Table 33: Saudi Arabian Charge Cards Category Size by Volume of Cards (Thousand), 2009–2018

Table 34: Saudi Arabian Charge Cards Category Size by Transaction Value (SAR Billion), 2009–2018

Table 35: Saudi Arabian Charge Cards Category Size by Transaction Value (US$ Million), 2009–2018

Table 36: Saudi Arabian Charge Cards Category Size by Transaction Volume (Million), 2009–2018

Table 37: Saudi Arabian Personal Charge Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 38: Saudi Arabian Personal Charge Cards Segment Size by Transaction Value (SAR Billion), 2009–2018

Table 39: Saudi Arabian Personal Charge Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 40: Saudi Arabian Personal Charge Cards Segment Size by Transaction Volume (Million), 2009–2018

Table 41: Saudi Arabian Commercial Charge Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 42: Saudi Arabian Commercial Charge Cards Segment Size by Transaction Value (SAR Million), 2009–2018

Table 43: Saudi Arabian Commercial Charge Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 44: Saudi Arabian Commercial Charge Cards Segment Size by Transaction Volume (Thousand), 2009–2018

Table 45: Saudi Arabian Prepaid Cards Category Size by Volume of Cards (Million), 2009–2018

Table 46: Saudi Arabian Prepaid Cards Category Size by Transaction Value (SAR Billion), 2009–2018

Table 47: Saudi Arabian Prepaid Cards Category Size by Transaction Value (US$ Billion), 2009–2018

Table 48: Saudi Arabian Open-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2009–2018

Table 49: Saudi Arabian Open-Loop Prepaid Cards Segment Size by Transaction Value (SAR Billion), 2009–2018

Table 50: Saudi Arabian Open-Loop Prepaid Cards Segment Size by Transaction Value (US$ Billion), 2009–2018

Table 51: Saudi Arabian Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 52: Saudi Arabian Closed-Loop Prepaid Cards Segment Size by Transaction Value (SAR Million), 2009–2018

Table 53: Saudi Arabian Closed-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 54: Al Rajhi Bank – Key Financial Indicators (SAR Million), Year Ending December, 2011–2012

Table 55: Al Rajhi Bank – Card Portfolio and Key Features

Table 56: SABB – Key Financial Indicators (SAR Million), Year Ending December, 2011–2012

Table 57: SABB – Card Portfolio and Key Features

Table 58: Samba Financial Group – Key Financial Indicators (SAR Million), Year Ending December, 2011–2012

Table 59: Samba Financial Group – Card Portfolio and Key Features

Table 60: Riyad Bank – Key Financial Indicators (SAR Million), Year Ending December, 2011–2012

Table 61: Riyad Bank – Card Portfolio and Key Features

Table 62: NCB – Key Financial Indicators (SAR Million), Year Ending December, 2012–2013

Table 63: NCB – Card Portfolio and Key Features

Table 64: Key Definitions

List of Figures

Figure 1: Benchmarking the Saudi Arabian Card Payment Channel Against Other Regional Markets

Figure 2: Saudi Arabian Growth of Various Card Categories (%), 2009–2018

Figure 3: Saudi Arabian Internet Penetration, 2009–2018

Figure 4: Saudi Arabian Value of M-Payments (SAR Million), 2010–2018

Figure 5: Saudi Arabian ATM Penetration, 2009–2018

Figure 6: Saudi Arabian POS Penetration, 2009–2018

Figure 7: EMV Card Volume in Saudi Arabia (Thousand), 2009–2013

Figure 8: Saudi Arabian Value of Retail Sales (SAR Billion), 2009–2018

Figure 9: Saudi Arabian E-Commerce Value (SAR Billion), 2009–2013

Figure 10: Saudi Arabian Real GDP Growth (%), 2009–2018

Figure 11: Saudi Arabian Nominal GDP Per Capita (US$), 2009–2018

Figure 12: Saudi Arabian Inflation (Consumer Price Inflation) Rate (%), 2009–2018

Figure 13: Saudi Arabian Shares of Different Payment Channels (%), 2009 and 2013

Figure 14: Saudi Arabian Card Fraud (%), 2009 and 2013

Figure 15: Saudi Arabian Card-Not-Present Fraud Value (SAR Million), 2009–2013

Figure 16: Saudi Arabian Lost or Stolen Card Fraud Value (SAR Million), 2009–2013

Figure 17: Saudi Arabian Counterfeit Card Fraud Value (SAR Million), 2009–2013

Figure 18: Saudi Arabian Card ID Theft Value (SAR Thousand), 2009–2013

Figure 19: Saudi Arabian Cards and Payments Industry Segmentation by Card Type

Figure 20: Saudi Arabian Volume of Outbound Tourist Trips (Thousand), 2009–2018

Figure 21: Saudi Arabian Outbound Tourist Spending (SAR Billion), 2009–2018

Figure 22: Saudi Arabian Consumer Card Spending by Product Category (%), 2012

Figure 23: Saudi Arabian Consumer Card Spending by Retail Channel (%), 2012

Figure 24: Saudi Arabian Card Payments Channel by Card Category (%), 2009–2018

Figure 25: Saudi Arabian Card Payments Channel Size by Volume of Cards (Million), 2009–2018

Figure 26: Saudi Arabian Card Payments Channel Size by Transaction Value (SAR Billion), 2009–2018

Figure 27: Saudi Arabian Credit Cards Category Volume and Penetration, 2009–2018

Figure 28: Saudi Arabian Credit Cards Category Size by Volume of Cards (Million), 2009–2018

Figure 29: Saudi Arabian Credit Cards Category Size by Transaction Value (SAR Billion), 2009–2018

Figure 30: Saudi Arabian Credit Cards Category Size by Transaction Volume (Million), 2009–2018

Figure 31: Saudi Arabian Credit Cards Category Transaction Value Share Analysis by Channel (SAR Billion), 2009–2018

Figure 32: Saudi Arabian Credit Cards Category Transaction Volume Share Analysis by Channel (Million), 2009–2018

Figure 33: Saudi Arabian Personal Credit Cards Segment Size by Volume of Cards (Million), 2009–2018

Figure 34: Saudi Arabian Personal Credit Cards Segment Size by Transaction Value (SAR Billion), 2009–2018

Figure 35: Saudi Arabian Personal Credit Cards Segment Size by Transaction Volume (Million), 2009–2018

Figure 36: Saudi Arabian Commercial Credit Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 37: Saudi Arabian Commercial Credit Cards Segment Size by Transaction Value (SAR Million), 2009–2018

Figure 38: Saudi Arabian Commercial Credit Cards Segment Size by Transaction Volume (Thousand), 2009–2018

Figure 39: Saudi Arabian Credit Cards Category Share by Scheme (%), 2013

Figure 40: Saudi Arabian Credit Cards Category Share by Issuer (%), 2013

Figure 41: Saudi Arabian Debit Cards Category Volume and Penetration, 2009–2018

Figure 42: Saudi Arabian Debit Cards Category Size by Volume of Cards (Million), 2009–2018

Figure 43: Saudi Arabian Debit Cards Category Size by Transaction Value (SAR Billion), 2009–2018

Figure 44: Saudi Arabian Debit Cards Category Size by Transaction Volume (Billion), 2009–2018

Figure 45: Saudi Arabian Debit Cards Category Transaction Value Share Analysis by Channel (SAR Billion), 2009–2018

Figure 46: Saudi Arabian Debit Cards Category Transaction Volume Share Analysis by Channel (Million), 2009–2018

Figure 47: Saudi Arabian Debit Cards Category Share by Scheme (%), 2013

Figure 48: Saudi Arabian Debit Cards Category Share by Issuer (%), 2013

Figure 49: Saudi Arabian Charge Cards Category Volume and Penetration, 2009–2018

Figure 50: Saudi Arabian Charge Cards Category Size by Volume of Cards (Thousand), 2009–2018

Figure 51: Saudi Arabian Charge Cards Category Size by Transaction Value (SAR Billion), 2009–2018

Figure 52: Saudi Arabian Charge Cards Category Size by Transaction Volume (Million), 2009–2018

Figure 53: Saudi Arabian Charge Cards Category Transaction Value Share Analysis by Channel (SAR Million), 2009–2018

Figure 54: Saudi Arabian Charge Cards Category Transaction Volume Share Analysis by Channel (Million), 2009–2018

Figure 55: Saudi Arabian Personal Charge Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 56: Saudi Arabian Personal Charge Cards Segment Size by Transaction Value (SAR Billion), 2009–2018

Figure 57: Saudi Arabian Personal Charge Cards Segment Size by Transaction Volume (Million), 2009–2018

Figure 58: Saudi Arabian Commercial Charge Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 59: Saudi Arabian Commercial Charge Cards Segment Size by Transaction Value (SAR Million), 2009–2018

Figure 60: Saudi Arabian Commercial Charge Cards Segment Size by Transaction Volume (Thousand), 2009–2018

Figure 61: Saudi Arabian Charge Cards Category Share by Scheme (%), 2013

Figure 62: Saudi Arabian Prepaid Cards Category Volume and Penetration, 2009–2018

Figure 63: Saudi Arabian Prepaid Cards Category Size by Volume of Cards (Million), 2009–2018

Figure 64: Saudi Arabian Prepaid Cards Category Size by Transaction Value (SAR Billion), 2009–2018

Figure 65: Saudi Arabian Open-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2009–2018

Figure 66: Saudi Arabian Open-Loop Prepaid Cards Segment Size by Transaction Value (SAR Billion), 2009–2018

Figure 67: Saudi Arabian Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 68: Saudi Arabian Closed-Loop Prepaid Cards Segment Size by Transaction Value (SAR Million), 2009–2018

Figure 69: Market Shares of Key Acquirers’ POS Terminals in Saudi Arabia (%), 2013

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