The Cards and Payments Industry in Saudi Arabia: Emerging trends and opportunities to 2020

Table of Contents

EXECUTIVE SUMMARY 2

1.1. Market overview 2

1.2. Key facts 4

1.3. Top five industry events 5

2. PAYMENT INSTRUMENTS 11

2.1. Current payment environment 11

3. E-COMMERCE AND ALTERNATIVE PAYMENTS 13

3.1. E-commerce market analysis 13

3.2. Alternative payment solutions 15

3.2.1. PayPal 15

3.2.2. PayFort 15

3.2.3. Boku 15

3.2.4. Paysafecard 16

3.2.5. Bango 16

3.2.6. T-Pay 16

3.2.7. M-Pesa 16

4. REGULATIONS IN THE CARDS AND PAYMENTS INDUSTRY 17

4.1. Regulatory framework 17

4.1.1. Payment systems 17

4.1.2. The Wage Protection Law 18

4.2. Anti-money laundering 18

4.3. Foreign direct investment (FDI) regulations 19

5. ANALYSIS OF CARDS AND PAYMENTS INDUSTRY DRIVERS 20

6. PAYMENT CARDS 23

7. DEBIT CARDS 25

7.1. Debit cards market analysis 25

7.2. Competition in the debit cards market 27

7.3. Debit card comparison 28

8. PAY-LATER CARDS 29

8.1. Pay-later cards market analysis 29

8.2. Competition in the pay-later cards market 31

8.3. Pay-later cards comparison 33

9. APPENDIX 35

9.1. Abbreviations and acronyms 35

9.2. Supplementary data 36

9.3. Definitions 47

9.4. Methodology 49

9.5. Bibliography 51

9.6. Further reading 51

List of Tables

Table 1: Saudi Arabia: key facts, 2016 4

Table 2: Saudi Arabia: regional benchmarking of payment cards, 2016 4

Table 3: Saudi Arabia: mode of entry of foreign banks 19

Table 4: Saudi Arabia: debit card comparison and key features, 2016 28

Table 5: Saudi Arabia: Gold credit cards comparison and key features, 2016 33

Table 6: Saudi Arabia: Premium credit cards comparison and key features, 2016 33

Table 7: Saudi Arabia: charge credit cards comparison and key features, 2016 34

Table 8: Saudi Arabia: payment instrument transaction values (SARbn), 2012-16 36

Table 9: Saudi Arabia: payment instrument transaction values ($bn), 2012-16 36

Table 10: Saudi Arabia: payment instrument transaction volumes (millions), 2012-16 36

Table 11: Saudi Arabia: payment cards in circulation by type (millions), 2012-20f 36

Table 12: Saudi Arabia: volume of payment card transactions (millions), 2012-20f 37

Table 13: Saudi Arabia: value of payment card transactions (SARbn), 2012-20f 37

Table 14: Saudi Arabia: value of payment card transactions ($bn), 2012-20f 37

Table 15: Saudi Arabia: debit cards in circulation (millions), 2012-20f 37

Table 16: Saudi Arabia: debit card transaction volumes, 2012-20f 38

Table 17: Saudi Arabia: debit card transaction values (SAR), 2012-20f 38

Table 18: Saudi Arabia: debit card transaction values ($), 2012-20f 38

Table 19: Saudi Arabia: debit cards in circulation by scheme (millions), 2012-16 39

Table 20: Saudi Arabia: debit card transaction values by scheme (SARbn), 2012-16 39

Table 21: Saudi Arabia: debit card transaction values by scheme ($bn), 2012-16 39

Table 22: Saudi Arabia: debit card transaction values by issuer (SARbn), 2012-16 39

Table 23: Saudi Arabia: debit card transaction values by issuer ($bn), 2012-16 40

Table 24: Saudi Arabia: pay-later cards in circulation (millions), 2012-20f 40

Table 25: Saudi Arabia: pay-later card transaction volumes, 2012-20f 40

Table 26: Saudi Arabia: pay-later card transaction values (SAR), 2012-20f 40

Table 27: Saudi Arabia: pay-later card transaction values ($), 2012-20f 41

Table 28: Saudi Arabia: pay-later cards in circulation by scheme (000s), 2012-16 41

Table 29: Saudi Arabia: pay-later card transaction values by scheme (SARbn), 2012-16 41

Table 30: Saudi Arabia: pay-later card transaction values by scheme ($bn), 2012-16 41

Table 31: Saudi Arabia: pay-later card transaction values by issuer (SARm), 2012-16 42

Table 32: Saudi Arabia: pay-later card transaction values by issuer ($m), 2012-16 42

Table 33: Saudi Arabia: credit cards in circulation (millions), 2012-20f 42

Table 34: Saudi Arabia: credit card transaction volumes, 2012-20f 42

Table 35: Saudi Arabia: credit card transaction values (SAR), 2012-20f 43

Table 36: Saudi Arabia: credit card transaction values ($), 2012-20f 43

Table 37: Saudi Arabia: credit cards in circulation by scheme (000s), 2012-16 43

Table 38: Saudi Arabia: credit card transaction values by scheme (SARbn), 2012-16 44

Table 39: Saudi Arabia: credit card transaction values by scheme ($bn), 2012-16 44

Table 40: Saudi Arabia: charge cards in circulation (000s), 2012-20f 44

Table 41: Saudi Arabia: charge card transaction volumes, 2012-20f 44

Table 42: Saudi Arabia: charge card transaction values (SAR), 2012-20f 45

Table 43: Saudi Arabia: charge card transaction values ($), 2012-20f 45

Table 44: Saudi Arabia: charge cards in circulation by scheme (000s), 2012-16 45

Table 45: Saudi Arabia: charge card transaction values by scheme (SARm), 2012-16 45

Table 46: Saudi Arabia: charge card transaction values by scheme ($m), 2012-16 46

Table 47: Key definitions 47

List of Figures

Figure 1: Saudi Arabia: payment instrument shares by transaction value (%), 2012 vs 2016 11

Figure 2: Saudi Arabia: payment instrument shares by transaction volume (%), 2012 vs 2016 12

Figure 3: Saudi Arabia: e-commerce market value, 2012-20f 13

Figure 4: Saudi Arabia: population and economic indicators 20

Figure 5: Saudi Arabia: ATMs, POS terminals and household consumption 21

Figure 6: Saudi Arabia: payment cards transaction value and cards in circulation, 2012-20f 23

Figure 7: Saudi Arabia: debit card penetration and turnover per card 25

Figure 8: Saudi Arabia: debit cards scheme and issuer transaction value share, 2016 27

Figure 9: Saudi Arabia: pay-later card penetration and turnover per card 29

Figure 10: Saudi Arabia: pay-later cards scheme and issuer transaction value share, 2016 31