Middle East Prepaid Card and Digital Wallet Market Growth Dynamics Databook 2025: Saudi Arabia's Unbanked Leverage Prepaid Cards for Financial Inclusion

Dublin, June 12, 2025 (GLOBE NEWSWIRE) -- The "Middle East Prepaid Card and Digital Wallet Market Intelligence and Future Growth Dynamics Databook - Q2 2025 Update" report has been added to ResearchAndMarkets.com's offering.

The Middle East's prepaid card and digital wallet market is poised for remarkable growth, projected to escalate by 11.3% annually, reaching USD 44 billion by 2025. This sector experienced a strong development phase from 2020-2024, boasting a CAGR of 15.8%. The robust expansion trajectory is set to continue with a CAGR of 9.5% forecasted between 2025-2029, further propelling the market to approximately USD 63.3 billion by 2029.

Key Trends and Drivers in the Middle East Prepaid Cards Sector

The prepaid card market in the Middle East is rapidly transforming, driven by digital payment advancements and financial inclusion efforts. Countries like the UAE and Qatar are integrating prepaid cards with digital wallets, reflecting a broader push towards cashless economies. Meanwhile, Saudi Arabia and Oman are leveraging prepaid solutions to address financial accessibility among unbanked populations, providing a secure and efficient alternative to traditional banking.

Over the next few years, the prepaid card sector is expected to expand, with government policies and financial institutions playing a crucial role in shaping market dynamics. Kuwait's retail industry and Oman's corporate sector demonstrate increased reliance on prepaid cards, indicating sector-specific growth opportunities. As financial ecosystems modernize, prepaid cards will remain a central tool for promoting financial inclusion and digital payment adoption across the Middle East.

Government Initiatives Driving Digital Payment Adoption in the United Arab Emirates

• The UAE is experiencing a significant increase in the adoption of prepaid payment instruments, supported by government efforts to digitize the economy. This includes initiatives to promote cashless transactions and enhance financial inclusion.
• The government's push towards a digital economy is a primary driver of this trend. By encouraging digital payment solutions, the UAE aims to improve transaction efficiency and reduce the reliance on cash.
• The trend is expected to continue, with increased collaboration between the government and financial institutions to introduce innovative prepaid card solutions. This will likely lead to higher adoption rates among consumers and businesses, further embedding prepaid cards into the UAE's payment ecosystem.

Rising Adoption of Prepaid Cards Among Unbanked Populations in Saudi Arabia

• In Saudi Arabia, prepaid cards are being used increasingly by individuals without traditional bank accounts. These cards provide a means for unbanked populations to engage in digital transactions.
• This trend is driven by the need for accessible financial services among unbanked individuals. Prepaid cards offer a practical solution for secure transactions without a traditional bank account.
• The adoption of prepaid cards among unbanked populations is expected to grow, contributing to greater financial inclusion in Saudi Arabia. Financial institutions may develop more tailored prepaid card products to meet the specific needs of this demographic.

Integration of Prepaid Cards with Digital Wallets in Qatar

• Qatar is witnessing the integration of prepaid cards with digital wallet platforms, allowing users to manage funds and make payments through their smartphones.
• The increasing penetration of smartphones and the demand for convenient payment solutions drive this trend. Consumers prefer the ease of managing finances digitally, which prepaid cards linked to mobile wallets facilitate.
• This integration is expected to deepen, with more financial institutions partnering with technology providers to offer seamless prepaid card and digital wallet solutions. This will likely enhance the user experience and promote cashless transactions in Qatar.

Growth of Prepaid Gift Cards in the Retail Sector in Kuwait

• Kuwait's retail sector is experiencing an increase in the issuance and use of prepaid gift cards, particularly during festive seasons and special occasions.
• Retailers are adopting prepaid gift cards to boost sales and attract customers. Consumers appreciate gift cards' flexibility, making them a popular choice for gifting.
• The trend is expected to intensify, with more retailers launching customized prepaid gift card programs. This will likely increase consumer engagement and loyalty in Kuwait's retail market.

Corporate Adoption of Prepaid Payroll Cards in Oman

• In Oman, companies are increasingly utilizing prepaid payroll cards to disburse salaries to employees, especially those without bank accounts.
• The need for efficient and secure salary disbursement methods drives this trend. Prepaid payroll cards offer a practical solution for employers to pay unbanked employees, ensuring timely and transparent transactions.
• Prepaid payroll cards are expected to expand, with more companies adopting this method to streamline payroll processes. This will contribute to financial inclusion and improve the financial well-being of employees in Oman.

Competitive Landscape of the Middle East Prepaid Card Market

The Middle East's prepaid card market is evolving rapidly, fueled by digital transformation, financial inclusion initiatives, and the growing demand for cashless payment solutions. Established financial institutions and fintech startups actively expand their offerings, leveraging strategic partnerships to enhance market reach.
As regulatory frameworks continue to adapt to the changing financial landscape, companies must balance compliance with innovation to remain competitive. The next few years will be critical in determining which players successfully capitalize on emerging opportunities, shaping the region's future of prepaid payment solutions.

Current Market Dynamics

• The rising adoption of prepaid cards in e-commerce, transportation, and corporate payroll solutions supports the market's growth. With many unbanked populations in the region, prepaid cards have become an essential financial tool, offering secure and accessible payment alternatives. Additionally, fintech companies are driving innovation, introducing digital wallets linked to prepaid cards, further expanding the market's reach.

Key Players and Market Share

• The prepaid card market in the Middle East is highly competitive, with a mix of global financial institutions and emerging fintech players. Leading companies such as Visa, Mastercard, American Express, and Carrefour SA dominate the market, offering a diverse range of prepaid card solutions for personal, corporate, and travel-related transactions. These companies have established strong distribution networks, leveraging partnerships with banks and retail chains.
• In addition to traditional financial institutions, fintech firms are entering the market with innovative prepaid card solutions tailored to regional needs. Companies like YouGotaGift, a digital gift card provider, have expanded their presence through partnerships with major retailers such as Carrefour. Meanwhile, regional fintech startups in Saudi Arabia and the UAE are launching prepaid card solutions integrated with mobile wallets, catering to the growing demand for digital financial services.

Recent Launches and Partnerships

• Strategic collaborations and partnerships are crucial in the evolution of the prepaid card market in the Middle East. One notable partnership is YouGotaGift's collaboration with Carrefour, which has expanded the availability of digital prepaid gift cards, addressing the rising demand for digital gifting solutions. Additionally, banks and fintech firms are forming alliances to integrate prepaid card services with digital payment platforms, enhancing consumer convenience.
• While direct mergers and acquisitions in the prepaid card segment remain limited, broader financial sector consolidations impact the market. Large financial institutions are acquiring smaller fintech firms to strengthen their prepaid card portfolios and expand their customer base. This trend is expected to intensify as traditional banks seek to enhance their digital offerings by leveraging the technological capabilities of fintech startups.

Anticipated Market Evolution (Next 2-4 Years)

• The prepaid card market in the Middle East is expected to become increasingly competitive over the next few years. The entry of new fintech firms and the expansion of services by existing players will drive further innovation. Integrating prepaid cards with digital wallets and mobile payment solutions will likely become a key differentiator, with companies focusing on enhancing customer convenience and security.
• Regulatory developments will also play a crucial role in shaping the market. As governments implement stricter financial regulations, prepaid card providers must navigate compliance challenges while maintaining product innovation. Additionally, the push for financial inclusion will create opportunities for companies to introduce prepaid solutions tailored to unbanked and underbanked populations, further driving market growth.

Regulatory Changes

• Regulatory bodies in the Middle East have introduced new measures to enhance consumer protection and improve financial transparency in the prepaid card industry. Governments across the region are focusing on strengthening anti-money laundering (AML) and know-your-customer (KYC) compliance frameworks to ensure secure prepaid card transactions. These regulations aim to reduce fraud risks and increase trust in digital payment solutions.
• Central banks in countries like Saudi Arabia and the UAE have also introduced guidelines to facilitate the seamless integration of prepaid cards with mobile payment systems. These changes enhance the financial ecosystem, providing consumers with more secure and convenient digital transaction options. As regulatory frameworks continue to evolve, prepaid card issuers must ensure compliance while maintaining a seamless user experience.

This report provides a detailed data-centric analysis of the prepaid card and digital wallet industry in Middle East, covering market opportunities and analysis across a range of prepaid card and digital wallet domains.

With over 80+ KPIs at the country level, this report provides a comprehensive understanding of prepaid card and digital wallet market dynamics, market size and forecast, and market share statistics.

Key Attributes:

Report Scope

This report offers an in-depth, data-driven examination of prepaid payment instruments, focusing on expenditures via prepaid cards and digital wallets within both retail and corporate consumer sectors. It also presents an overview of global consumer behavior and retail spending patterns. The report includes a detailed breakdown of key market segments for each country.

• Prepaid Payment Instrument Market Size and Forecast
• Digital Wallet Market Size and Forecast
• Digital Wallet Market Size and Forecast by Key Segments
• Digital Wallet Retail Spend Dynamics
• Prepaid Card Industry Market Attractiveness
• Open Loop Prepaid Card Future Growth Dynamics
• Closed Loop Prepaid Card Future Growth Dynamics
• Prepaid Card Consumer Usage Trends
• Prepaid Card Retail Spend Dynamics
• General Purpose Prepaid Card Market Size and Forecast
• Gift Card Market Size and Forecast
• Gift Card Market Size and Forecast by Consumer Segments
• Gift Card Market Share Analysis by Retail Categories
• Entertainment and Gaming Prepaid Card Market Size and Forecast
• Teen and Campus Prepaid Card Market Size and Forecast
• Business and Administrative Expense Prepaid Card Market Size and Forecast
• Payroll Prepaid Card Market Size and Forecast
• Meal Prepaid Card Market Size and Forecast
• Travel Forex Prepaid Card Market Size and Forecast
• Transit and Tolls Prepaid Card Market Size and Forecast
• Social Security and Other Government Benefit Programs Prepaid Card Market Size and Forecast
• Fuel Prepaid Cards Market Size and Forecast
• Utilities, and Other Prepaid Cards Market Size and Forecast
• Virtual Prepaid Card Industry Market Attractiveness
• Virtual Prepaid Card Market Size by Key Categories

For more information about this report visit https://www.researchandmarkets.com/r/jluwpd

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• Middle Eastern Prepaid Card and Digital Wallet Market