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 2023 To 2028

The Middle East and Africa digital wallet industry is expected to grow at a compound annual growth rate of 29.86% over the forecast period to reach a size of US$1555,757.937 million in 2028, from US$25,555.940 million in 2021.

As a result of rapid digitalization, the number of digital transactions has increased in the region. According to the World Bank, countries in the Middle East and Africa have witnessed increased internet consumption. For example, in 2020, internet consumption reached 76% of this region's total population from 31% in 2012.

Moreover, in the Middle East and Africa, per 100 individuals, 117 had mobile cellular subscriptions as of 2021. Consequently, the COVID-19 pandemic has also propelled internet usage. Consumer behavior was positively impacted by the COVID-19 pandemic, which sped up the shift from conventional in-store shopping to online shopping and pick-up in-store, to the point where businesses implemented safer contactless payment services in response to customer demand for such possibilities. In addition, digital payments are also being promoted as regular initiatives are also being taken up at the country level in this region.

Drivers:

• Increasing government initiatives  

In 2021, according to the World Bank, only 52.8% of the population of Middle Eastern and African countries have account ownership of a financial institution. Therefore, many countries across the region are taking up mindful initiatives. For instance, The Kingdom of Saudi Arabia aims to accelerate its digital economy and increase cashless transactions to 70% by 2030, under Vision 2030. This encouraged private companies with increased opportunities. The number of fintech companies that gained approval from the Saudi Central Bank had reached 23 by November 2022. In November 2022, the Saudi Central Bank gave Tweeq a license to offer e-wallet services in Saudi Arabia.  

• Increasing population and the growing trend of e-commerce.

The prevalence of e-commerce in the region further increased for the same reason. This made digital wallets a predominant and convenient option to make payments.  Moreover, according to a study in UAE, half of the UAE population prefers to use a digital wallet. With the increasing young population and the growing trend of e-commerce, the demand for digital wallets is increasing. Additionally, in Africa, the increased internet connectivity boosted market growth during the COVID-19 outbreak. Subsequently, South Africa is witnessing a digital payment boom. Companies like Google launched their Google Wallet in the country in August 2022.

Key Developments

• In 2020, UAE developed a national digital cash replacement platform that allows banked as well as unbanked consumers to make cash payments. The replacement platform is a digital wallet that has been by Emirates Digital Wallet (EDW). The initiative is part of a nationwide program in eliminating the use of physical cash in the country.
• In October 2022, Ziina, a digital wallet based in Dubai, raised a Series A investment after raising $9.4 billion in pre-seed capital in 2021. The P2P-based program allows users to make and receive money with a few taps. It not only eliminates the need for IBAN and Swift codes, but it also makes payments more social by letting users share SMS, emojis, photographs, and GIFs.
• In April 2022, Careem, the UAE-based ride-hailing service, expanded its latest fintech initiative, digital payments, into Saudi Arabia. A digital payment system provides an intermediate platform for storing funds that may be transferred between two users or to a merchant without the need for IBAN information or the creation of beneficiaries. The firm has completed more than $5 billion in transactions through ride-hailing and delivery services in the previous five years. Through consumer payments, the company predicts a $2.8 trillion opportunity in the area.

Similarly, in various MEA countries, strategic alliances were formed in the countries to connect their audience with the rest of the world digitally. For example, Airtel Africa partnered with MoneyGram. The partnerships enable Airtel Money customers to receive MoneyGram transfers directly into their mobile wallets from over 200 countries globally.

Money transfer as an application.

The Middle East and African digital wallet industry have been classified into money transfer, food ordering, movie booking, recharge, and others. The innovative product launches in addition to investments and partnerships have positively influenced the market for money transfer in the MEA region during the forecast period. For instance, in June 2022, MoneyGram International, Inc., a global leader in the evolution of digital P2P payments, and Mobily Pay, a pioneering mobile wallet announced a partnership to launch MoneyGram's leading international money transfer capabilities on Mobily Pay.

U.A.E Market Insights:

By country, the Middle East and African digital wallet industry has been analyzed into the UAE, Saudi Arabia, Egypt, South Africa, and others. Investment opportunities made by several market players in UAE will also effectively result in causing an increase in the number, lucrativeness, and reliability of digital wallet options available to customers. As a result, this is increasing the adoption of digital wallets among people, thus boosting the overall market growth in the country.

Major factors such as the growth in e-commerce followed by the declining cash dependency for making transactions, the increasing penetration of smartphones across the country, and improving internet access among people are favoring the increase in digital transactions. For instance, the nation continues to have a very high proportion of the population with access to the Internet.

Middle East and Africa Digital Wallet Market Scope:

Segments

• BY DEVICE
  • PCs/Laptops
  • Smartphones
• BY APPLICATION
  • Money Transfer
  • Recharge
  • Movie Booking
  • Food Ordering
  • Others
• BY COUNTRY
  • UAE
  • Saudi Arabia
  • Egypt
  • South Africa
  • Others