Saudi Arabia has emerged as the largest real-time payments market in the Middle East, according to the 2023 Prime Time for Real-Time report, published by ACI Worldwide, a real-time payments software.
Last year, the country recorded 352 million real-time payment transactions, forecasted to climb to 1.2 billion in 2027, with a compound annual growth rate of 26.1 per cent, the report finds.
This news comes at a time when the Middle East has evolved into the fastest-growing real-time payments market in the world, with transactions estimated to grow from $675 million in 2022 to $2.6 billion by 2027.
Saudi Arabia has witnessed an accelerated shift towards non-cash payments in recent years, owing to the government’s active support for the modernisation of the national payments infrastructure.
By 2027, the majority of payments in Saudi Arabia are expected to be electronic, with 7.4 per cent being real-time payments and 48.6 per cent other forms of electronic payments, the report shows.
The study hughlights that Saudi Arabia has broken into the global Top 10 for mobile wallet adoption – taking the 9th place – with 80 per cent of Saudi consumers stating they are avid mobile wallet users. Apparently, this trend originated at the height of lockdown when the government urged consumers to adopt new forms of cashless payments.
Much of Saudi Arabia’s real-time payments success can be credited to the Saudi Vision 2030 plan, which promotes the modernisation of the country’s payments infrastructure and the adoption of digital payments to foster economic growth and financial inclusion.
Senior vice president in the Middle East, Africa and South Asia region at ACI Worldwide, Santhosh Rao, said: “With two-thirds of the population under the age of 25, real-time payments are going to continue to flourish and pave the way for more economic growth and financial prosperity across Saudi Arabia.
“As an early adopter of real-time payments infrastructure, the market has seen outstanding growth over the last few years, and this is only set to continue as the country focuses on its Vision 2030 agenda. ACI has worked across the world to support governments and banks as they roll out real-time payments, and we are delighted to be a leading provider in the Middle East to help countries in the region reap the benefits of real-time payments.”
The report finds that the Middle East is the fastest-growing real-time payments market globally, with transactions expected to increase from $675 million in 2022 to $2.6 billion by 2027, growing at a compound annual growth rate of 30.6 per cent.
Bahrain closely follows Saudi Arabia as the region’s second biggest real-time payments market. By 2027, Bahrain citizens are expected to make an average of 83.3 real-time transactions per month.
“Real-time payments growth and adoption in Bahrain has been remarkable, making it a regional and global leader in the field, said Mr Rao.
“Bahrain’s government and Central Bank support, as well as its innovative digital infrastructure, have made it an ideal environment for businesses and consumers to take advantage of real-time payments.”
As Middle East’s governments and regulators are setting new mandates for adoption, countries including UAE, Qatar, Kuwait and Oman are looking to introduce domestic real-time schemes soon, with innovative features and new services for consumers and businesses at the head of the agenda.
