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RIYADH: Saudi Arabia’s payments industry is experiencing strong growth, with total revenues expected to reach $21.7 billion by 2028, according to a new report by Boston Consulting Group.
The sector’s expansion is driven by the Kingdom’s focus on digital transformation, fintech adoption, and efforts to improve financial accessibility.
The Kingdom’s payments revenues grew from $10.3 billion in 2018 to $16.2 billion in 2023, reflecting a compound annual growth rate of 9.4 percent. By 2028, this figure is projected to grow by another 34 percent. Additionally, transaction volumes are forecasted to surge by 68 percent, from 11.3 billion in 2023 to 19 billion by 2028.
These developments highlight Saudi Arabia as a leader in the Gulf Cooperation Council payments sector and a key driver of the Middle East’s projected 7 percent CAGR for payments revenue through 2028.
“Saudi Arabia’s payments industry is moving toward a balanced model that integrates rapid growth with sustainable resilience,” said Lukasz Rey, managing director, partner and head of the Middle East Financial Institutions Practice at Boston Consulting Group.
“To achieve this, Saudi firms must prioritize scalable, modular infrastructures that optimize operational flexibility while reducing technology overhead. Incorporating generative AI (artificial intelligence) can elevate customer service, streamline fraud detection, and drive efficiency at scale, which are essential factors as the market matures,” she added.
Rey went on to say that as regulatory scrutiny intensifies, companies that proactively embed risk management and compliance into their core technology will set the standard for delivering secure, innovative services that meet the high expectations of both customers and stakeholders in an evolving sector.
While Saudi Arabia and the broader Middle East region remain growth hotspots, the report highlights a significant global slowdown in the payments industry.
Global payments revenue is expected to see a CAGR of 5 percent through 2028 — just over half of the 9 percent rate achieved over the past five years.
The global revenue pool is expected to increase from $1.8 trillion in 2023 to $2.3 trillion by 2028.
North America and Europe are set to experience the steepest slowdowns, with annual revenue growth of just 3 percent.
In contrast, emerging markets such as the Middle East, Latin America, and Asia-Pacific are forecasted to see stronger development, driven by the accelerating adoption of digital payments.
As global payments markets face increasing regulatory scrutiny, technological disruptions, and evolving customer expectations, the Kingdom is well-positioned to sustain its growth trajectory through continued innovation.
Saudi Arabia’s efforts to modernize its payments infrastructure, expand digital payments adoption, and integrate new technologies like generative AI will play a key role in its long-term success.
“With transaction volumes in Saudi Arabia set to increase by 68 percent by 2028, the payments sector is a regional leader in growth potential,” said Bhavya Kumar, managing director and partner at Boston Consulting Group.
“Capturing this value, however, will require firms to build flexible, API-driven infrastructures that integrate seamlessly into digital ecosystems. By adopting agile methods and focusing on regulatory alignment, Saudi firms can adapt quickly to shifting consumer expectations and market demands,” he explained.
“The companies that strategically invest in scalable technology and embrace a disciplined approach to risk management will distinguish themselves, fostering a resilient framework that drives sustainable success within Saudi Arabia’s dynamic payments industry,” Kumar added.