Middle East And Africa Digital Wallet Market Size, Share, Opportunities, COVID-19 Impact And Trends By Device (PC/Laptops, Smartphones), By Application (Money Transfer, Recharge, Movie Booking, Food Ordering, Others), And By Country - Forecasts From 2022 To 2027

Published:  Jun 2022 Report Code: KSI061613796 Pages: 95

The Middle East and Africa digital wallet market were valued at US$8.429 billion in 2020.

Despite holding a relatively small market share compared to big regional markets like North America, Europe, and the Asia Pacific, the Middle East, and Africa digital wallet market is expected to grow well over the forecast period. The market growth in this region is majorly attributed to the solid growth of the e-commerce sector across countries like Saudi Arabia, UAE, Israel, and Turkey, among others. For instance, the e-commerce industry in the Kingdom of Saudi Arabia contributes more than 15% to the country’s GDP, and the sector is witnessing rapid growth with a solid increase in the number of e-shoppers across the country and the increasing number of transactions they make for products and services online. The market growth in this region is also being driven by the declining dependency of people on cash for making transactions. Continuously increasing the penetration of smartphones across the Middle East and Africa and improving access to the internet among people across countries favor the increase in digital transactions across the region. For instance, the United Arab Emirates (UAE) continues to have a very high proportion of the population with access to the internet. According to data from the World Bank group, only around 23% of the UAE’s population had access to the internet in the year 2000. Since then, huge investments by telecom companies in this country, coupled with the high disposable income of people (which has also increased the penetration of smartphones in this country), have been causing this figure to climb up a steep curve, which makes sense as the figure stood at 98.45% in 2018 (Source: The World Bank Group). Investments by many market players in many markets across this region increase the number, lucrativeness, and reliability of digital wallet options available to customers. This further increases the adoption of digital wallets among people, thus boosting the market growth.

COVID-19 IMPACT

The Covid-19 disease outbreak has significantly increased the use of digital wallet platforms, particularly online transaction services, in the Middle East and Africa.  As per the Kaspersky Digital Payment research study, a global digital privacy and cybersecurity company, approximately 93% of Middle Eastern respondents caused a spike in their use of e-wallet and mobile payments in 2021, as instant gratification compelled the majority of them to adopt financial technologies. The majority of participants that is 64% of them stated that they only began utilizing digital wallets during the pandemic. Digital payment services, in distinctive, aided 61% of respondents in maintaining social distance. Because acquired habits stick with people, 92% of those polled intend to use Internet banking and e-wallet services more frequently. The covid-19 presented an opportunity for users to recognize, learn, and use digital wallet services available to them for their benefit. Hence over the period of pandemic the digital wallet market had uptick the market in Middle East and Africa and trend is expected grow for the forecasted period.

In conjunction with this, the continuously increasing spread of the novel coronavirus disease across this region is increasing the popularity of digital wallets among people. According to the World Health Organization (WHO), as of 9:08 am on June 22, 2020, Saudi Arabia had 154,233 confirmed COVID-19 cases and 1,230 deaths. Qatar, Iran, Egypt, and UAE have also shown a continuous increase in COVID-19 cases. The high risk of this disease spread associated with contact-based payments makes people reluctant to use them. Since digital wallets are safer to use, and as market players continue to offer lucrative benefits to customers using their digital wallets, their adoption across this region is increasing continuously. This increases the payment revenue generated by market players through digital wallets, thus augmenting the market growth.

REGIONAL ANALYSIS

The Middle East and Africa digital wallet market has been segmented based on the device, application, and country. The market has been segmented as PCs/laptops and smartphones by the device. By application, The Middle East and Africa digital wallet market has been classified into Money transfer, recharge, movie booking, food ordering, and others. The regional market has been segmented into the UAE, Turkey, Saudi Arabia, and Others.

Recent Development

  • October 2021, the introduction of the eNaira, Nigeria has become the first country in Africa to initiate a digital currency. It has been dubbed a "watershed moment" that will convert commerce in Africa's largest economy. The eNaira can be accessed via a phone app that includes a digital wallet that links to the user's bank.
  • August 2021, To obtain banking licenses in the Middle East and North Africa, telecommunications companies are introducing digital wallets. Regulatory initiatives in the Middle East and Africa are increasing competition for financial services, with fintech and telco firms launching digital.
  • January 2021, Mastercard, a digital payment technology pioneer, and Network International, the Middle East and Africa region's leading enabler of ecommerce, have partnered to launch a new online presence that will speed up the adoption of digital transactions across the Middle East and Africa.
  • March 2020, The Saudi Arabian Monetary Authority has granted digital wallet licenses to Halalah and BayanPay, the two most recent startups. Following their successful graduation from SAMA's sandbox, the two startups' licensing was announced last week.

Segmentation

  • By Device
    • PC/Laptops
    • Smartphones
  • By Application
    • Money Transfer
    • Recharge
    • Movie Booking
    • Food Ordering
    • Others
  • By Country
    • UAE
    • Saudi Arabia
    • Egypt
    • South Africa
    • Others
1. Introduction
1.1. Market overview
1.2. COVID-19 Impact
1.3. Market Definition
1.4. Market Segmentation

2. Research Methodology
2.1. Research Data
2.2. Assumptions

3. Executive Summary
3.1. Research Highlights

4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Market Opportunities
4.4. Porter’s Five Forces Analysis
4.4.1. Bargaining Power of Suppliers
4.4.2. Bargaining Power of Buyers
4.4.3. Threat of New Entrants
4.4.4. Threat of Substitutes
4.4.5. Competitive Rivalry in the Industry
4.5. Industry Value Chain Analysis

5.  Middle East and Africa digital Wallet Market Analysis, By Device
5.1. Introduction
5.2. PCs/Laptops
5.3. Smartphones

6. Middle East and Africa digital Wallet Market Analysis, By Application
6.1. Introduction
6.2. Money Transfer
6.3. Recharge
6.4. Movie Booking
6.5. Food Ordering
6.6. Others 

7. Middle East and Africa digital Wallet Market Analysis, By Country
7.1. Introduction
7.2. UAE
7.3. Saudi Arabia
7.4. Egypt
7.5. South Africa
7.6. Others
 
8. Competitive Environment and Analysis
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix

9. Company Profiles
9.1. Google
9.2. BKM Express
9.3. iPara
9.4. BayanPay
9.5. PayHalal
9.6. Apple Inc.
9.7. SAMSUNG
9.8. AliPay
9.9. Payit
9.10. Etisalat

Google

BKM Express

iPara

BayanPay

PayHalal

Apple Inc.

SAMSUNG

AliPay

Payit

Etisalat

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