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Saudi Individual E-Payments Capture 70% of Transactions

The number of “Mada” card transactions online has risen to its highest levels since the service was introduced (SPA)
The number of “Mada” card transactions online has risen to its highest levels since the service was introduced (SPA)
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Saudi Individual E-Payments Capture 70% of Transactions

The number of “Mada” card transactions online has risen to its highest levels since the service was introduced (SPA)
The number of “Mada” card transactions online has risen to its highest levels since the service was introduced (SPA)

Saudi Arabia has seen a big rise in e-payments by individuals, making up 70% of total individual transactions in 2023, up from 62% in 2022—a 13% increase.

According to the Saudi Central Bank, also known as SAMA, almost all transactions, 96%, were made using Near Field Communication (NFC) technology.

The government, through its Financial Sector Development Program, part of Saudi Arabia’s Vision 2030, is focused on building a strong economy by empowering institutions, advancing the financial market, and backing fintech startups.

This program is crucial for the stability and growth of the Kingdom’s banking system, investing in technologies to improve banking experiences and access to financial services.

Experts speaking to Asharq Al-Awsat say the rise in individual e-payments is a big step in Saudi Arabia’s digital transformation journey, showing its commitment to improving the financial sector and financial inclusion.

Dr. Salem Bajajah from King Abdulaziz University credits technological progress and the government’s focus on information security, especially in banking.

He also mentioned that the Ministry of Commerce’s requirement for stores to have point-of-sale devices has helped boost e-payments.

Mohammed Al-Faraj, from Arbah Capital, highlighted that Saudi Arabia has seen a significant increase, with 70% of retail payments now made electronically by individuals.

This change marks an important moment in the Kingdom’s digital transformation efforts and its goal of improving the financial sector and financial inclusion.

Al-Faraj credited this rise to efforts by SAMA and other government bodies to promote digital payments, as well as awareness campaigns about the benefits and security of electronic transactions.

A statement by SAMA highlighted that Saudi Arabia has seen significant progress in adopting e-payments in recent years, thanks to collaborative efforts between the central bank and the financial sector.

SAMA emphasized its commitment to providing diverse payment options and improving the quality of digital payment solutions to facilitate financial transactions, enhance efficiency, and reduce costs.

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Washington Urges Israel to Extend Cooperation with Palestinian Banks

A West Bank Jewish settlement is seen in the background, while a protestor waves a Palestinian flag during a protest against Israel's separation barrier in the West Bank village of Bilin in 2012. (AP)
A West Bank Jewish settlement is seen in the background, while a protestor waves a Palestinian flag during a protest against Israel's separation barrier in the West Bank village of Bilin in 2012. (AP)
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Washington Urges Israel to Extend Cooperation with Palestinian Banks

A West Bank Jewish settlement is seen in the background, while a protestor waves a Palestinian flag during a protest against Israel's separation barrier in the West Bank village of Bilin in 2012. (AP)
A West Bank Jewish settlement is seen in the background, while a protestor waves a Palestinian flag during a protest against Israel's separation barrier in the West Bank village of Bilin in 2012. (AP)

The United States on Thursday called on Israel to extend its cooperation with Palestinian banks for another year, to avoid blocking vital transactions in the occupied West Bank.

"I am glad that Israel has allowed its banks to continue cooperating with Palestinian banks, but I remain convinced that a one-year extension of the waiver to facilitate this cooperation is needed," US Treasury Secretary Janet Yellen said Thursday, on the sidelines of a meeting of G20 finance ministers in Rio de Janeiro.

In May, Israeli Finance Minister Bezalel Smotrich threatened to cut off a vital banking channel between Israel and the West Bank in response to three European countries recognizing the State of Palestine.

On June 30, however, Smotrich extended a waiver that allows cooperation between Israel's banking system and Palestinian banks in the occupied West Bank for four months, according to Israeli media, according to AFP.

The Times of Israel newspaper reported that the decision on the waiver was made at a cabinet meeting in a "move that saw Israel legalize several West Bank settlement outposts."

The waiver was due to expire at the end of June, and the extension permitted Israeli banks to process payments for salaries and services to the Palestinian Authority in shekels, averting a blow to a Palestinian economy already devastated by the war in Gaza.

The Israeli threat raised serious concerns in the United States, which said at the time it feared "a humanitarian crisis" if banking ties were cut.

According to Washington, these banking channels are key to nearly $8 billion of imports from Israel to the West Bank, including electricity, water, fuel and food.