Saudi Arabia Prepaid Card Market Research Report, 2030

The prepaid card market in Saudi Arabia is experiencing significant growth, fueled by the rapid adoption of digital payment solutions, increased smartphone penetration, and government initiatives promoting a cashless economy. As part of Vision 2030, the Saudi government is actively encouraging financial inclusion and digital transformation, which has led to a surge in the use of prepaid cards across different consumer segments. The demand for these cards is primarily driven by their convenience, security, and ability to cater to both banked and unbanked populations. With a large expatriate workforce in the country, prepaid payroll cards have gained immense traction, allowing employers to streamline salary disbursements while ensuring financial accessibility for workers. Furthermore, the booming e-commerce industry has led to increased adoption of prepaid cards for secure online transactions, as many consumers prefer them over traditional credit or debit cards. The rise of fintech companies and neobanks has also played a crucial role in shaping the market, introducing innovative prepaid card solutions tailored for various needs, such as travel, corporate expenses, and government subsidies. As more businesses integrate prepaid card solutions for loyalty programs and employee benefits, the market is expected to witness sustained growth in the coming years. Additionally, international travelers and students studying abroad are increasingly using prepaid travel cards, contributing to market expansion. With Saudi Arabia’s strong focus on digital banking and contactless payment solutions, prepaid cards are poised to become an integral part of the financial ecosystem. According to the research report, "Saudi Arabia Prepaid Card Market Research Report, 2030," published by Actual Market Research, the Saudi Arabia Prepaid Card market is anticipated to add to more than USD 12.76 Billion by 2025–30. Saudi prepaid card market is undergoing a transformative shift, driven by evolving consumer behaviors, technological advancements, and regulatory support. One of the most notable trends is the increasing adoption of contactless payments, with consumers preferring tap-and-go transactions for enhanced convenience and security. The integration of prepaid cards with digital wallets such as Apple Pay and STC Pay has further accelerated this shift, enabling seamless transactions across various platforms. Another significant trend is the rising demand for virtual prepaid cards, particularly among e-commerce shoppers and digital service subscribers who seek greater privacy and fraud protection. The corporate sector is also leveraging prepaid cards for expense management, with businesses issuing reloadable prepaid cards to employees for controlled spending. Additionally, the use of prepaid cards for government welfare programs and subsidies is growing, as authorities aim to enhance financial inclusion while ensuring transparency in fund distribution. Loyalty-based prepaid cards are gaining traction, with retail and hospitality businesses issuing closed-loop prepaid cards to drive customer engagement and repeat purchases. The emergence of fintech startups has further fueled innovation in the market, with many introducing AI-driven prepaid solutions that offer real-time transaction monitoring and spending insights. The push for blockchain-based prepaid cards is another emerging trend, as financial institutions explore ways to enhance security and reduce fraud risks. Furthermore, with the Saudi Central Bank encouraging digital banking initiatives, banks and fintech firms are increasingly collaborating to expand prepaid card offerings. The growing popularity of multi-currency prepaid travel cards also reflects the rising demand for seamless international transactions.

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The Saudi prepaid card market is segmented into open-loop and closed-loop prepaid cards, both serving distinct consumer needs. Open-loop prepaid cards have gained widespread acceptance due to their flexibility and usability across different merchants, ATMs, and online platforms. These cards are linked to major payment networks such as Visa and Mastercard, enabling users to make secure transactions anywhere these networks are accepted. The growing preference for open-loop prepaid cards is driven by their ability to serve as an alternative to traditional bank accounts, making them particularly beneficial for expatriates and low-income workers who require a secure method for receiving salaries and managing expenses. Businesses are also increasingly issuing open-loop prepaid cards to employees for travel expenses, corporate spending, and meal allowances. On the other hand, closed-loop prepaid cards are primarily used within specific merchant networks or service providers, offering businesses an effective tool for customer retention and loyalty programs. Retailers, restaurants, and entertainment providers frequently issue closed-loop prepaid cards to incentivize repeat purchases and brand engagement. These cards are also gaining popularity as digital gift cards, allowing consumers to make seamless transactions within a predefined ecosystem. The demand for closed-loop prepaid cards is further driven by the expansion of loyalty programs, where businesses reward customers with prepaid store credits. Additionally, transportation services and theme parks are increasingly adopting closed-loop prepaid cards to facilitate cashless transactions for ticketing and in-venue purchases. Prepaid cards in Saudi Arabia serve a variety of applications, catering to different financial and transactional needs. General-purpose reloadable (GPR) cards represent a significant portion of the market, offering consumers a flexible alternative to traditional banking. These cards are widely used for everyday expenses, online purchases, and bill payments, making them a preferred financial tool among young professionals, students, and expatriates. Gift cards have also seen a surge in popularity, particularly during festive occasions and corporate gifting programs. Businesses are increasingly leveraging prepaid gift cards to reward employees and customers, fostering brand loyalty while driving sales. Payroll cards play a crucial role in salary disbursement, especially for blue-collar workers who lack access to traditional banking services. Employers favor payroll prepaid cards as a cost-effective and secure solution for distributing wages, reducing the reliance on cash transactions. Government benefits cards have become an essential component of social welfare programs, enabling authorities to provide financial aid to eligible citizens efficiently. These cards ensure transparency in subsidy distribution, aligning with the government’s efforts to enhance financial inclusion. Travel prepaid cards are also gaining traction, particularly among frequent travelers who require a secure and convenient payment method for international expenses. With multi-currency features and competitive exchange rates, travel prepaid cards offer a practical alternative to carrying cash. Other applications include prepaid meal cards, fuel cards, and student cards, all designed to streamline payments within specific use cases. The prepaid card market in Saudi Arabia caters to a wide range of end users, including retail consumers, corporate businesses, and government entities. Retail consumers represent the largest segment, utilizing prepaid cards for everyday transactions, online shopping, travel expenses, and personal budgeting. With increasing digital literacy and the growing preference for cashless payments, consumers are adopting prepaid cards as a secure and convenient alternative to cash and traditional banking. The rise of neobanks and fintech apps has further facilitated prepaid card adoption among individuals seeking hassle-free financial solutions. Corporate and business users also constitute a significant portion of the market, employing prepaid cards for employee expense management, travel allowances, and business-related transactions. Companies benefit from the transparency and control that prepaid cards offer, ensuring that employee spending is monitored and managed efficiently. Additionally, many businesses issue prepaid gift cards as part of customer loyalty programs, boosting brand engagement and sales. The government and public sector are increasingly utilizing prepaid cards for subsidy distribution, salary payments for public employees, and student welfare programs. By digitizing financial aid and government disbursements, authorities are enhancing financial inclusion while minimizing fraud and inefficiencies. As prepaid card usage continues to expand across different end-user segments, financial institutions and fintech providers are expected to introduce more tailored solutions to meet the evolving needs of Saudi consumers, businesses, and government bodies.

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The Saudi prepaid card market is segmented into single-use and multi-use prepaid cards, each serving distinct consumer and business needs. Single-use prepaid cards are primarily issued for specific transactions, such as gift cards and promotional incentives. These cards are commonly used in retail and hospitality sectors, where businesses offer them as part of loyalty rewards and seasonal campaigns. Single-use prepaid cards are particularly popular during festive periods, allowing recipients to make purchases within a predefined limit without the need for reloads. On the other hand, multi-use prepaid cards are gaining traction due to their reusability and flexibility. These cards are widely used for payroll, corporate expenses, and daily financial management, offering consumers the ability to reload funds as needed. Multi-use prepaid cards cater to individuals who require a long-term financial tool for managing expenses without a bank account. The integration of multi-use prepaid cards with digital wallets and contactless payment systems has further enhanced their appeal, making them a preferred choice for frequent travelers and online shoppers. As consumer preferences continue to evolve, both single-use and multi-use prepaid cards will play a crucial role in the expanding Saudi digital payments ecosystem. The increasing reliance on prepaid cards for financial management, budgeting, and digital transactions has further expanded the use cases for both single-use and multi-use prepaid cards. Single-use prepaid cards are particularly popular in the entertainment industry, where they are used for purchasing gaming credits, streaming subscriptions, and event tickets. These cards provide an added layer of security for users who prefer not to share their bank details online, reducing the risk of fraud and unauthorized transactions. The distribution of prepaid cards in Saudi Arabia is facilitated through multiple channels, including banking institutions, retail stores, and online platforms. Banking institutions play a dominant role in issuing prepaid cards, leveraging their existing customer base and extensive financial infrastructure. Banks offer a wide range of prepaid card solutions, including payroll cards, travel cards, and general-purpose reloadable (GPR) cards, catering to both individual and corporate clients. The strong regulatory framework and trust associated with banking institutions have led to a high adoption rate of bank-issued prepaid cards, particularly among expatriates and salaried professionals who require secure financial tools. Retail stores also serve as key distribution points, particularly for closed-loop and gift prepaid cards. Supermarkets, convenience stores, and major retail chains offer prepaid cards that customers can purchase for themselves or as gifts. These cards are commonly used for shopping, dining, and entertainment, providing businesses with an effective tool for driving customer engagement and brand loyalty. Additionally, partnerships between retailers and financial institutions have facilitated the growth of co-branded prepaid card programs, allowing businesses to expand their payment offerings. Online platforms have emerged as a rapidly growing distribution channel, driven by the increasing penetration of e-commerce and digital banking solutions. Many fintech companies and digital payment providers offer virtual prepaid cards that can be acquired and managed through mobile apps, eliminating the need for physical card issuance. Online platforms provide consumers with instant access to prepaid cards, enabling seamless transactions for online shopping, subscriptions, and travel bookings. Considered in this report • Historic Year: 2019 • Base year: 2024 • Estimated year: 2025 • Forecast year: 2030

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Aspects covered in this report • Prepaid Card Market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Card Type • Open-Loop Prepaid Cards • Closed-Loop Prepaid Cards By Application • General-Purpose Reloadable (GPR) Cards • Gift Cards • Payroll Cards • Government Benefits Cards • Travel Cards • Others By End User • Retail Consumers • Corporate & Businesses • Government & Public Sector By Usage • Single-Use Prepaid Cards • Multi-Use Prepaid Cards By Distribution Channel • Banking Institutions • Retail Stores • Online Platforms The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.