Middle East & Africa Credit Card Transactions Market Outlook, 2029

The Middle East and Africa credit card transaction market epitomises a landscape shaped by a blend of cultural diversity, economic dynamism, and technological innovation. Spanning across a vast region encompassing diverse countries with varying levels of economic development and regulatory frameworks, the credit card market in the Middle East and Africa (MEA) represents a crucial nexus for financial transactions and commerce. The MEA area has had a significant increase in consumer spending in recent times, mostly due to the growing middle class, rapid urbanisation, and growing use of digital payment methods.

Due to their ease, security, and versatility in online and offline transactions, credit cards have become the go-to method of payment for consumers. A variety of regional banks, fintech companies, and international payment networks compete for market share in this fiercely competitive industry. In addition, the increasing number of people using smartphones and having access to the internet has spurred the development of digital wallets and mobile banking, which has accelerated the use of credit cards in the area. But obstacles like complicated regulations, security issues, and disparities in financial inclusion remain, highlighting the necessity of stakeholder cooperation in order to develop a strong and inclusive credit card transaction environment. The credit card transaction market is still positioned for growth and innovation as the MEA region continues to experience rapid economic and technological change. This presents opportunities for stakeholders to profit from the changing needs and preferences of both businesses and consumers.

According to the report 'Middle East and Africa Credit Card Transaction Market Outlook, 2029,”, the Middle East and Africa Credit Card Transaction market is anticipated to grow with more than 6.5% CAGR from 2024-2029. The MEA area is seeing rapid economic expansion, fueled by the development of infrastructure, industrialization, and urbanisation. The demand for credit card transactions rises as earnings grow, living standards rise, and customers have more money to spend. Urbanisation rates in the MEA region are among the highest globally, with millions of people migrating from rural areas to cities in search of better opportunities.

Urban areas typically have higher levels of consumer spending and greater access to financial services, including credit cards, driving demand for credit card transactions. In the MEA area, the use of technical advancements and digital payment solutions like digital wallets, contactless payments, and mobile banking applications is expanding quickly. The demand for credit card use is being driven by consumers' increased reliance on credit cards for digital transactions and online shopping. There's a rising need for easy, safe, and adaptable payment methods as customer tastes change.

Credit cards are a popular payment option in the MEA area since they provide advantages including purchase protection, cashback incentives, and travel privileges. With millions of tourists visiting each year, the MEA area is a well-liked travel destination. Travel-related costs like lodging, meals, and shopping are frequently paid for using credit cards by tourists, which increases demand for credit card transactions. Additionally, the usage of credit cards for overseas purchases inside the area is driven by cross-border trade and business.

Market Drivers

Changing Consumer Preferences: Convenient, safe, and adaptable payment methods are becoming more and more in demand in the MEA area as customer tastes change. Credit cards are an appealing option for customers looking to properly manage their money since they provide advantages including cashback incentives, travel privileges, and purchase protection. Furthermore, the acceptance of technological advancements and digital payment solutions, including contactless payments and mobile banking applications, is in line with the desires of contemporary customers, who are becoming more and more dependent on digital channels for transactions. The MEA region's credit card transaction industry is expanding as a result of consumers' shifting tastes, which are driving the use of credit cards as the preferred payment method both online and offline.

Economic Growth and Rising Affluence: Economic growth in the MEA region, coupled with rising affluence among consumers, fuels the demand for credit card transactions. As disposable incomes increase and standards of living improve, consumers have more purchasing power and a greater appetite for discretionary spending. Credit cards provide consumers with access to credit facilities, allowing them to make purchases beyond their immediate means and spread payments over time. Moreover, rising affluence leads to lifestyle changes and aspirations for higher-quality goods and services, driving demand for credit card transactions for a wide range of purchases, including retail shopping, dining, travel, and entertainment.

Market Challenges

Currency Fluctuations: The market for credit card transactions in the Middle East and Africa (MEA) is severely hampered by currency volatility. The MEA area is distinguished by a variety of economies, each with a currency that is prone to volatility because of a range of causes, including shifts in global financial markets, commodity price movements, and geopolitical unpredictability. Credit card transactions can be impacted by currency changes in a number of ways. First off, swings in exchange rates can impact the cost of goods and create confusion over the total amount paid in local currency for customers conducting business internationally or visiting other countries. Second, changes in exchange rates can have an effect on pricing policies, profit margins, and financial planning for retailers and companies that take credit card payments.

Low Card Acceptance: Low card acceptance is another significant challenge facing the Middle East and Africa credit card transaction market. Despite the increasing adoption of credit cards by consumers, particularly in urban areas and among affluent segments of the population, card acceptance remains relatively low in many parts of the MEA region. Merchants, especially small businesses and vendors in rural or underserved areas, may be hesitant to accept credit cards due to factors such as high transaction fees, limited access to payment infrastructure, and concerns about security and fraud. Additionally, cultural norms, religious beliefs, and regulatory barriers may also influence merchant attitudes towards card acceptance. Low card acceptance limits the utility and convenience of credit cards for consumers, forcing them to rely on cash or alternative payment methods for transactions. This lack of acceptance hampers the growth of the credit card transaction market in the MEA region, constraining opportunities for businesses to expand their customer base and driving financial exclusion for consumers who prefer or rely on credit card payments.

Based on the report, the card types are segmented into general purpose, specialty, and other credit cards. In terms of the report, providers names are segmented into Visa, MasterCard, and Others.

In the Middle East and Africa, the general purpose is to lead the credit card transaction market. General-purpose credit cards offer versatility and flexibility, allowing cardholders to make purchases at a wide range of merchants, both domestically and internationally. These cards are widely accepted by merchants across various industries, including retail, dining, travel, and entertainment, making them convenient for everyday transactions and larger purchases. General-purpose credit cards offer a wide range of features and benefits to cardholders, including rewards programmes, cashback incentives, travel perks, purchase protection, and insurance coverage.

These value-added benefits attract consumers seeking to maximise the value they receive from their credit card usage, driving demand for general-purpose cards in the MEA region. In this region, Visa is significantly playing a role in the market; one of the most extensively used payment networks in the world is Visa. Visa cards are accepted at millions of places worldwide, including in the MEA area, thanks to its vast network of financial institutions and businesses. Visa cards are a popular option for customers who are travelling abroad and for businesses looking to increase their client base because of their widespread acceptance. Visa has established partnerships with numerous banks and financial institutions in the MEA region to issue Visa-branded credit cards to consumers. These partnerships enable Visa to offer a wide range of credit card products tailored to the needs and preferences of consumers, including general-purpose credit cards, co-branded cards, rewards cards, and specialty cards targeting specific demographics or industries.

According to the report, the applications are bifurcated into Food & Groceries, Health & Pharmacy, Consumer Electronics, and Other Applications.

In the Middle East and Africa, health and pharmacy contribute to the market, and spending on healthcare is rising across the MEA area as economies expand and people get wealthier. The willingness of consumers to make investments in their health and well-being has resulted in increased costs for prescription prescriptions, over-the-counter medications, medical supplies, and healthcare services. Credit cards provide consumers with a practical and adaptable way to pay for their medical costs, including prescription purchases. Some countries in the MEA region, such as the United Arab Emirates, Jordan, and Turkey, have emerged as popular destinations for medical tourism.

International patients travel to these countries to access high-quality healthcare services, including medical treatments, surgeries, and wellness programs. Healthcare tourists often use credit cards to pay for medical consultations, diagnostic tests, prescription medications, and other healthcare-related expenses during their stay, contributing to the growth of credit card transactions in the health and pharmacy sectors. The growth of e-commerce and digital platforms in the MEA region has facilitated the emergence of online pharmacy platforms. Consumers can now purchase prescription medications, over-the-counter drugs, and health products online and have them delivered to their doorstep. Credit cards are the preferred payment method for online transactions, offering security, convenience, and buyer protection for consumers making purchases on e-pharmacy websites and mobile apps.

Based on the report, the major countries covered include the UAE, Saudi Arabia, South Africa, and the rest of the Middle East and Africa.

South Africa is playing a key role in the Middle East and Africa credit card transaction market. The financial infrastructure of South Africa is highly developed, with strong banking institutions, wide-ranging payment networks, and cutting-edge payment processing technology. The credit card industry is expanding as a result of the nation's advanced financial infrastructure, which enables easy credit card transactions and provides a variety of banking services. Credit card penetration is relatively high in South Africa compared to other countries in the MEA region. Many South Africans have access to credit cards issued by both local and international banks, allowing them to make purchases, pay bills, and access credit facilities conveniently.

The widespread availability and usage of credit cards contribute to South Africa's dominance in the credit card transaction market. A strong consumer culture and high levels of discretionary expenditure on products and services characterise South Africa. Credit cards are widely used by South African consumers for a variety of purposes, such as eating, travel, retail buying, and entertainment. The country's affluent population and robust consumer spending habits are reflected in the predominance of credit card usage, which propels credit card industry transaction volumes.

Recent Developments

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Credit Card Transactions market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Card Type

• General Purpose
• Specialty & Other Credit Cards

By Provider

• Visa
• Master-card
• Others

By Application

• Food & Groceries
• Health & Pharmacy
• Consumer Electronics
• Other Application

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases.

After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Credit Card Transactions industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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