Saudi Arabia Mobile Wallet Market

Saudi Arabia Mobile Wallet Market Overview:

The Saudi Arabia mobile wallet market size reached USD 2.45 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 9.01 Billion by 2033, exhibiting a growth rate (CAGR) of 14.40% during 2025-2033. Due to rising smartphone adoption, government encouragement for cashless transactions, and customer preferences for digital payment methods that improve convenience and security in financial transactions, the Saudi Arabian mobile wallet market share is growing.

Saudi Arabia Mobile Wallet Market Trends:

Growth of E-commerce and Online Retail

The rapid expansion of e-commerce and online shopping portals is driving the use of mobile wallets in Saudi Arabia. As per the IMARC Group, the Saudi Arabia e-commerce market size reached USD 222.9 Billion in 2024. People are purchasing fashion, electronics, groceries, and essential services online, and digital wallets offer a convenient, secure, and quick payment option. Unlike traditional card payments, mobile wallets allow faster checkout, enhanced fraud protection, and one-click purchases, making them ideal for the fast-paced online retail environment. Retailers and e-commerce platforms are also incentivizing digital wallet utilization by offering discounts, cashback, and loyalty rewards to encourage adoption. With e-commerce platforms gaining popularity, mobile wallets are becoming a default payment method. The seamless integration of wallets with online shopping apps not only reduces cart abandonment rates but also promotes repeat purchases.

Rising Smartphone Penetration and Internet Connectivity

The widespread adoption of smartphones in Saudi Arabia is a key driver of the market growth. With one of the highest smartphone penetration rates in the region, people have the essential tool to access mobile payment applications. As per the Canalys research, in the first quarter of 2024, smartphone shipments in Saudi Arabia experienced a strong 54% increase compared to 2023. Coupled with the growing internet connectivity and faster mobile data services, using mobile wallets for everyday transactions has become seamless. The availability of 4G and expansion of 5G networks has further enhanced app usability, enabling smoother, faster, and more secure digital payments. Moreover, app developers and financial institutions are capitalizing on this connectivity by designing mobile wallets that are intuitive, multilingual, and compatible with different operating systems. As digital literacy is improving and people are spending more time online for shopping, banking, and bill payments, mobile wallets are becoming the preferred payment method.

Government Initiatives for Cashless Economy

Saudi Arabia’s Vision 2030 is placing heavy emphasis on digital transformation, with one of its goals being to shift the economy towards cashless transactions. As per the GobalData, in 2024, cashless payments in Saudi Arabia were anticipated to rise by 7.6% to SR550 Billion (USD 146.8 Billion), up from SR511.5 Billion in 2023. The government, through the Saudi Central Bank (SAMA), has been encouraging the adoption of mobile wallets by licensing fintech providers and creating a secure regulatory environment for digital payments. This commitment helps build user trust while ensuring that financial institutions invest in mobile wallet solutions. By linking financial inclusion goals with mobile payment initiatives, the government is creating an ecosystem where citizens and businesses are motivated to move away from cash. In addition, mandatory regulations for merchants to accept digital payments in sectors, such as retail and transportation, have accelerated mobile wallet adoption.

Key Growth Drivers of Saudi Arabia Mobile Wallet Market:

Changing User Behavior and Preference for Convenience

User behavior in Saudi Arabia is shifting rapidly towards convenience, digital lifestyles, and faster payment methods, fueling mobile wallet adoption. Younger generations, especially millennials and Gen Z, are accustomed to digital-first experiences and prefer mobile-based solutions over traditional cash or card transactions. These users are drawn to features like contactless payments, peer-to-peer transfers, and integration with ride-hailing, food delivery, and entertainment apps. Mobile wallets also offer the advantage of consolidating multiple services, ranging from bill payments to ticket bookings, into a single application, eliminating the need for multiple platforms. User preferences are further transitioning to contactless, hygienic payment options, further embedding mobile wallets into daily routines. This behavioral transformation, coupled with rising digital literacy, ensures that mobile wallets are not just an alternative but a mainstream financial tool in Saudi Arabia.

Financial Inclusion and Reach to the Unbanked Population

Mobile wallets play a significant role in extending financial services to Saudi Arabia’s underbanked or unbanked populations. Many individuals, including expatriate workers, have limited access to traditional banking infrastructure but own smartphones, making mobile wallets a convenient entry point into the financial system. By allowing people to send remittances, pay bills, and make purchases without requiring a bank account, mobile wallets empower these groups with greater economic participation. Government policies supporting financial inclusion, alongside partnerships between fintech firms and telecom operators, are ensuring that mobile wallets reach remote or underserved areas. This inclusivity not only benefits individuals but also boosts the overall economy by digitizing payments and reducing reliance on cash. As more people are gaining access to digital finance, the adoption of mobile wallets is expanding, highlighting their importance in bridging financial gaps across Saudi Arabia.

Security and Regulatory Confidence

A critical factor propelling the growth in Saudi Arabia is the emphasis on strong security frameworks and regulatory oversight. With financial transactions being highly sensitive, people need assurance that their money and personal data are protected. Mobile wallets in Saudi Arabia are designed with advanced encryption, biometric authentication, and fraud detection systems, which significantly reduce risks compared to traditional cash or even card transactions. The SAMA also plays a pivotal role in enforcing compliance standards, issuing licenses, and ensuring fintech providers adhere to strict guidelines. This regulatory backing is increasing user trust and encouraging more people to transition to digital payments. Furthermore, as cyber awareness is growing, people are getting more comfortable using wallets for high-value transactions.

Saudi Arabia Mobile Wallet Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional level for 2025-2033. Our report has categorized the market based on type and application.

Type Insights:

• Proximity
• Remote

The report has provided a detailed breakup and analysis of the market based on the types. This includes proximity and remote.

Application Insights:

• Retail
• Hospitality and Transportation
• Telecommunication
• Healthcare
• Others

A detailed breakup and analysis of the market based on the applications have also been provided in the report. This includes retail, hospitality and transportation, telecommunication, healthcare, and others.

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Saudi Arabia Mobile Wallet Market News:

• September 2025: The Central Bank of Saudi Arabia (SAMA) and Ant International, a prominent global provider of digital payments, digitization, and financial technology, is set to introduce cross-border QR code payments between Saudi Arabia’s (KSA) national payment system, mada, and Ant International’s wallet platform, Alipay+, in 2026 to promote digitization and inclusive growth for local businesses. The partnership aimed to support the bold objectives of Vision 2030 and expand the robust digital infrastructure by SAMA to improve mobile payment connectivity and elevate Saudi Arabia’s position as a global tourism center.
• September 2025: Thunes and barq, the swiftly expanding digital wallet in Saudi Arabia, revealed the introduction of barq’s improved remittance services for millions of users throughout the Kingdom. With Thunes' reliable Direct Global Network, barq users could effortlessly transfer money internationally, with transactions reaching billions of mobile wallets and bank accounts in real time.
• September 2024: Tabby, a financial technology company located in Riyadh, Saudi Arabia, announced its acquisition of the Saudi mobile wallet company, Tweeq. This marked the first acquisition for the Dubai-based company, which was valued at USD 1.5 Billion in its most recent funding round in 2023. This strategic choice would enable Tabby to expand its digital banking offerings in Saudi Arabia, where it primarily served over 80 percent of its 14 million clients. Additionally, Tabby operated in the UAE, Bahrain, Kuwait, and Qatar, providing its UAE customers with a Visa card that enabled them to split their transactions into four payments at any retailer that accepted Visa.

Saudi Arabia Mobile Wallet Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia mobile wallet market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia mobile wallet 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 Saudi Arabia mobile wallet 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.