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Saudi Is Making Big Leaps In Cashless Payments This Year!
According to a report by GlobalData, a London-based data analytics company, digital payments are expected to jump by 7.6 percent in 2024, hitting SR550 billion ($146.8 billion), up from SR511.5 billion the previous year.
This uptick is part of Saudi’s push towards a cashless society, with the government encouraging everyone to ditch cash for cards when it comes to financial transactions. Ravi Sharma, a lead analyst at GlobalData, mentioned how cash has been king in Saudi Arabia, but now, more people are leaning towards electronic payments.
The Kingdom has a solid digital payment setup
Sharma highlighted that the country’s got a solid digital payment setup, backed by a growing card market and a well-established acceptance system. Plus, the government’s pushing for more merchants to offer electronic payment options alongside cash.
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While cash still has its place, especially for smaller buys, the trend is moving towards cashless payments. This shift aligns with Saudi’s Vision 2030, aiming to slash cash transactions and boost electronic payments to 70 percent of all transactions by 2025.
This change towards digital payments was accelerated with the pandemic
The pandemic has accelerated this change, with more people preferring contactless payments. Sharma noted a rise in contactless card usage, with Saudi’s central bank reporting a whopping 363.4 million transactions using NFC-enabled mada cards in February 2024, up from 331.7 million in February 2023.
Debit cards rule the roost in the card payment scene, making up a whopping 85 percent of the total card payment value in 2023. It’s all part of a larger trend towards electronic payments, backed by government initiatives, improved payment infrastructure, and growing consumer awareness.
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