GCC Payment Gateway Market

Market Overview:

The GCC payment gateway market size reached US$ 3,084.4 Million in 2023. Looking forward, IMARC Group expects the market to reach US$ 8,974.6 Million by 2032, exhibiting a growth rate (CAGR) of 12.2% during 2024-2032. The bolstering growth of the e-commerce sector, the surge in online transactions, and the widespread use of payment gateways for round-the-clock purchases are among the key factors driving the market growth.

A payment gateway refers to a technology that facilitates online transactions by transmitting information between a payment portal, including a website or mobile app, and a bank. When a customer places an order, the payment gateway encrypts the credit or debit card details and sends this data to the merchant's bank for approval. The bank responds with a confirmation or denial of the transaction. This process happens in real-time, allowing for instant, secure transactions. The payment gateway serves as the digital equivalent of a point-of-sale (POS) terminal in a traditional retail setting, allowing businesses to process electronic payments securely.

The bolstering growth of the e-commerce sector and the surging popularity of online shopping due to changing consumer behavior and digitalization are creating a heightened need for secure and efficient online payment methods, primarily driving the growth of the payment gateway market in the GCC region. In addition to this, the significant expansion of small and medium enterprises (SMEs) is spurring a requirement for streamlined and simplified transaction processes, creating a favorable outlook for market expansion. Moreover, the influence of the COVID-19 pandemic, as it propels the shift towards contactless transactions, is acting as another growth-inducing driver. Concurrent with this, the increasing internet penetration and smartphone usage, coupled with growing consumer trust in digital payments, are presenting remunerative growth opportunities for the market. Furthermore, regulatory bodies across the GCC are actively endorsing cashless transactions and laying down frameworks for digital payments, thereby propelling the market forward. Other factors, such as the growing fintech landscape, investments in technology, and advancements such as mobile wallets and payment apps, are bolstering the market growth.

GCC Payment Gateway Market Trends/Drivers:

Rising digital transformation and financial technology innovation

The payment gateway market in the GCC is strongly driven by the expanding digital transformation sweeping across the region. This transformation is not merely limited to consumers adopting digital channels but also extends to businesses investing in digital infrastructure and the government initiating policies that promote digitization. This climate propels financial technology (fintech) innovations, which play a crucial role in modernizing and streamlining payment processes. Payment gateways, as integral components of fintech, are thus experiencing significant demand.

Rising proliferation of e-commerce and online services

The GCC has witnessed unprecedented growth in e-commerce and online services, both in terms of the number of online platforms and user base, creating a positive outlook for market expansion. As businesses of all sizes seek to establish an online presence and cater to the growing digital consumer base, they require reliable, secure, and efficient payment gateways to facilitate online transactions. This is a prime factor contributing to the increased demand for payment gateways in the GCC region.

GCC Payment Gateway Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the GCC payment gateway market report, along with forecasts at the regional and country levels from 2024-2032. Our report has categorized the market based on application and mode of interaction.

Breakup by Application:

• Large Enterprises
• Micro and Small Enterprises
• Mid-Size Enterprises
   

Large Enterprises represent the most widely used product type

The report has provided a detailed breakup and analysis of the market based on the application. This includes large, micro and small, and mid-size enterprises. According to the report, large enterprises represented the largest segment.

Large enterprises are increasingly seeking to streamline their financial operations and customer transactions, which, in turn, is fueling the demand for payment gateways. In line with this, the surging need for improved financial security and fraud prevention is essential in these organizations, given the large volume of transactions they handle. As a result, they are extensively investing in payment gateway solutions that provide advanced fraud detection features, creating a favorable outlook for market expansion. Moreover, as large enterprises often operate across multiple countries, they require gateways capable of processing various currencies and payment methods, which contributes to the market's growth. Furthermore, the drive for operational efficiency, the growing requirement for secure global transactions, and the rising emphasis on enhancing customer experience are key factors propelling the payment gateway demand in large enterprises.

Breakup by Mode of Interaction:

• Hosted Payment Gateways
• Non-Hosted Payment Gateways
• Direct Payment Gateways
• Platform-Based Payment Gateways

Hosted payment gateways account for the majority of the market share

A detailed breakup and analysis of the market based on the mode of interaction has also been provided in the report. This includes hosted, non-hosted, direct, and platform-based payment gateways. According to the report, hosted payment gateways accounted for the largest market share.

The demand for hosted payment gateways is primarily being propelled by their user-friendly nature and cost-effectiveness. Concurrent with this, hosted gateways redirect customers to the payment service provider's platform to complete transactions, relieving businesses of the responsibility for heavy-duty data security and compliance and making them an attractive option for businesses with limited resources. Furthermore, hosted gateways often come with a plethora of customizable options, offering a chance for businesses to create a seamless branded transaction journey. Apart from this, with the rise of software as a service (SaaS) models and the increasing demand for low-cost, high-efficiency solutions, the adoption of hosted payment gateways is presenting remunerative growth opportunities for the market.

Breakup by Country:

• Saudi Arabia
• UAE
• Qatar
• Oman
• Kuwait
• Bahrain

UAE holds the largest share in the market

The report has also provided a comprehensive analysis of all the major regional markets, which include Saudi Arabia, UAE, Qatar, Oman, Kuwait, and Bahrain. According to the report, UAE accounted for the largest market share.

In the UAE, the demand for payment gateways is significantly being driven by the influx of international tourism and the resultant increase in cross-border transactions. Besides this, the nation's strong commitment to becoming a global hub for travel and commerce necessitates the need for robust, multi-currency, and multi-language payment gateway systems. In addition to this, the rise in the number of digital-savvy expatriates seeking convenient and secure digital payment solutions is acting as another significant growth-inducing factor. Furthermore, the UAE government's strategic focus on fostering innovation and entrepreneurship, particularly within the fintech sector, provides an impetus for the growth of the payment gateway market.

Competitive Landscape:

The competitive landscape of the GCC payment gateway market is distinguished by the presence of both international and regional players, with market dynamics shaped by competition, innovation, and strategic collaborations. International entities have a substantial regional footprint, leveraging their robust, feature-rich solutions and global reputation. Besides this, local companies are capitalizing on their deep understanding of regional consumer behavior, regulations, and specific market needs. As the market continues to expand, there's a trend of strategic alliances, partnerships, and mergers to strengthen offerings and expand customer reach. Additionally, the market witnesses constant innovation as players vie to provide users secure, seamless, and efficient transaction experiences. With digital transactions becoming the norm, new entrants are expected to join the market, further intensifying the competition.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided.

GCC Payment Gateway Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the GCC payment gateway market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the GCC payment gateway market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the GCC payment gateway industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.