The Use and Adoption of Mobile Payments is Seeing Spreading Gradually in Middle East & Africa, Despite Some Barriers to Resolve
This report summarizes the latest and future developments in the markets and gives an overview of the growth trajectory of the digital payment methods across countries in the region.
The growth pattern of digital payment methods such as mobile wallets is different across the region, with some countries progressing more than the others
Survey respondents in the Middle East and Africa believed that digital wallets are expected to be the payment method most preferred by the consumers by 2025. However, not all countries in the region are progressing at the same rate. The UAE, Saudi Arabia, and Egypt are the drivers of the growth, while countries such as Nigeria, Israel, and Jordan lag behind. In Nigeria, the share of mobile wallet users is forecasted to grow twofold between 2020 and 2025, but it will still be low as compared to other countries in the region. The mobile wallet transactions in terms of value and volume are projected to see a double-digit CAGR in the same period, with value reaching a certain billion Euros by 2025. Furthermore, the number of mobile payment transactions in the country more than doubled between 2020 and 2021. In Israel, more than three-quarters of the payments came via cards in 2021, with a small percentage of payments coming via electronic wallets. Nevertheless, more than half of credit card payments were contactless and came via digital wallets in 2021.
Despite the rise in mobile payment methods in Africa, certain barriers impede the growth path
The digital payments use in Middle East & Africa observed a growing trend even before the pandemic and continued its expansion post pandemic. The massive growth in the number of digital payment transactions and card payments in UAE and Saudi Arabia respectively can be attributed to the outbreak of the pandemic. Moreover, more than three quarters of the surveyed payment professionals believed that the cashless payments in the region accelerated due to the pandemic. The digital point of sales retail transactions in Saudi Arabia doubled in 2021. Despite the increasing adoption of digital payments in Africa, lack of knowledge and relevance were the main barriers for mobile money account ownership. Even though the region faces some complex barriers in terms of the use of mobile payments, mobile money providers and other stakeholders are taking the relevant steps to reduce these barriers. For instance, in Senegal more than two-thirds of the surveyed adults used mobile money even though half of them had difficulties in reading and writing, as per a survey cited in the report.
Key Questions Answered
- What are the payment methods that are forecasted to grow in Middle East and Africa by 2025?
- How many mobile wallets are forecasted to be in use in Middle East and Africa by 2025?
- What is the forecasted digital payment transaction value in UAE by 2030?
- What were the main reasons mentioned for owning mobile wallets in Jordan in 2021?
Countries Covered
- Egypt
- Israel
- Jordan
- Kenya
- Nigeria
- Saudi Arabia
- UAE
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Table of Contents
1. Management Summary
2. Global Developments
- Online & Mobile Payment Trends, July 2022
- Value of Digital Wallet Transactions, in USD trillion, 2022f & 2026f
- Mobile Payment Market Size, in USD trillion, 2021 & 2028f
- Number of B2C E-Commerce Transactions Paid by OEM Mobile Payment Apps, in billions, 2022f & 2026f
- Most Used Payment Methods When Shopping Online During The Pandemic, in % of Online Shoppers, by Selected Countries, April 2021
- Value of Biometrically Authenticated Remote Mobile Payments, in USD billion, 2022e & 2027f
- Volume of Biometrically Authenticated Remote Mobile Payments, in billions, 2022e & 2027f
- Number of Mobile Contactless Transactions, in billions, 2021e & 2023f
- Proximity Mobile Payment Users Worldwide, in millions, and Year-on-Year Change, in %, 2020-2025f
- Proximity Mobile Payment User Penetration, in % of Smartphone Users, 2020-2025f
- Number of Mobile Wallet Users, by Region, in millions, 2020 & 2025f
- Proximity Mobile Payment Users in Select Countries, in % of Smartphone Users, 2021e
- Payment Methods Accepted by Online Merchants, by Already Accepted and Planned, in % of Online Merchants, February 2022
- Breakdown of Digital Banking Fraudulent Transactions, by Channel, incl. Mobile App, in %, Q3 2019 - Q2 2021
3. Middle East & Africa
3.1. Regional
- Online & Mobile Payment Trends, July 2022
- Most Preferred Payment Methods by 2025, in % of Respondents, 2020
- Number of Mobile Wallets in Use, in millions, and Year-on-Year Change, in %, 2020-2025f
- Overview of Mobile Money Statistics in Africa, incl. Number of Live Services, Registered Accounts, in millions, Active Accounts, in millions, Transaction Volume in millions, and Transaction Value, in USD billion, and Year-on-Year Growth, in %, by Sub-Region, 2021
3.2. UAE
- Mobile Wallet User Penetration, in % of Population, 2020 & 2025f
- Digital Payment Transaction Value, in USD billion, 2020 & 2030f
- Mobile Wallet Transaction Value, in USD billion, and Volume, in millions, 2020 & 2025f
- Average Annual Digital Payment Transaction Value Per User, in USD, 2019-2021
- Number of Digital Payment Transactions, in billions, 2020 & 2030f
- Breakdown of Most Used Payment Methods, in %, 2021
- View On Digital Payments, in % of Merchants, 2020
3.3. Saudi Arabia
- Mobile Wallet User Penetration, in % of Population, 2020 & 2025f
- Mobile Wallet Transaction Value, in USD billion, and Volume, in billions, 2020 & 2025f
3.4. Israel
- Breakdown of Most Used Payment Methods, in %, 2021
- Breakdown of Types of Credit Card Payments, in %, 2021
3.5. Jordan
- Breakdown of Mobile Wallet Usage, by Banked and Unbanked, in % of Respondents, 2021
- Reasons For Owning Mobile Wallets, in % of Mobile Wallet Owners, 2021
3.6. Egypt
- Mobile Wallet User Penetration, in % of Population, 2020 & 2025f
- Mobile Wallet Transaction Value, in USD billion, and Volume, in billions, 2020 & 2025f
- Number of Mobile Wallets, in millions, H1 2020 & H1 2021
3.7. Nigeria
- Mobile Wallet User Penetration, in % of Population, 2020 & 2025f
- Mobile Wallet Transaction Value, in USD billion, and Volume, in billions, 2020 & 2025f
- Number of Mobile Payment Transactions, in millions, and Value, in NGN billion, 2017-2021
3.8. Kenya
- Mobile Payment Statistics, incl. Number of Transactions, in Millions, Value of Transactions, in KES Billion, Number of Accounts, in Millions, and Number of Agents, in Thousands, 2011-2021
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