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.
