GlobalData’s 2022 Financial Services Consumer Survey* found that payment cards are leading the e-commerce space in Saudi Arabia and collectively account for over one-third of the market share.

The leading data and analytics company’s E-Commerce Analytics reveal that the Saudi e-commerce market will register a healthy 17.9% growth to reach SAR58.5 billion ($15.6 billion) by 2022, as consumers are increasingly shifting from offline to online. The market is set to increase at a compound annual growth rate (CAGR) of 12.1% between 2022 and 2026 and is predicted to reach SAR92.5 billion ($24.7 billion) in 2026.

Ravi Sharma, Lead Banking and Payments Analyst at GlobalData, comments: “The Saudi e-commerce market growth is being driven by increasing consumer confidence in online shopping, and the availability of alternative payment tools. Currently, payment cards are the leading payment method for online purchases, accounting for 34.9% overall ecommerce transaction value in 2022.”

Sharma adds: “Among payment cards, Saudi consumers favour credit and charge cards due to the value-added benefits, including interest free instalment payment options, reward programs, cashback, and discounts.”

Meanwhile, alternative payment tools are gaining popularity among online shoppers, collectively accounting for a 29% share of total ecommerce transaction value in 2022 – up from 23.2% in 2021. Among these alternative payment tools, Apple Pay, PayPal and stc pay are popular brands among online shoppers.

Sharma concludes: “Although payment cards continue to lead the way in the online payment space, the growing popularity of alternative payment solutions, especially among younger generations, could accelerate the shift in favour of the latter, as this segment is keen on embracing new payment technologies.”

*GlobalData’s 2022 Financial Services Consumer Survey was carried out in Q2 2022. Approximately 50,000 respondents aged 18+ were surveyed across 40 countries.