According to PayNXT360’s Q2 2021 Global Prepaid Card Survey, prepaid card market in the Saudi Arabia is expected to grow by 12.0% on annual basis to reach US$ 8,564.3 million in 2021.The prepaid card market expected to grow over the forecast period, recording a CAGR of 10.4% during 2021-2025. The prepaid card market in Saudi Arabia will increase from US$ 7,644.5 million in 2020 to reach US$ 11,376.0 million by 2025.

The growing adoption of prepaid payment instruments such as digital wallets is driving the growth of the prepaid card industry in Saudi Arabia. Moreover, the growth in e-commerce shopping has also supported the adoption of prepaid cards in the country. With more than a year into the global pandemic, the adoption of prepaid payment instruments is rising, and consumer appetite for it is growing fast.

E-commerce transactions driving the growth for prepaid card segment in Saudi Arabia:

E-commerce transactions, especially those in the fashion, electronics, and grocery sectors, have witnessed significant growth over the last few quarters. The region went into various stages of lockdown, therefore, forcing consumers to increase their online spending. This has resulted in growing business for prepaid card services. For instance,

  • LikeCard, the prepaid card service in Saudi Arabia and other GCC countries, was recording 80,000 purchase orders on a daily basis. Notably, the prepaid card provider has more than 4 million users in the region and has partnered with 70 plus regional and international e-commerce platforms.



Moreover, this growing adoption of prepaid payment instruments has also resulted in rising investment opportunities for FinTech prepaid providers. For instance,

  • Riyadh-based FinTech Hala, which provides financial services to SMEs, including a Mada prepaid card, raised US$6.5 million in March 2021.
  • In January 2021, another Riyadh-based FinTech Hakbah raised US$1.2 million for its alternative savings platform.