The Saudi Central Bank is spearheading a comprehensive regulatory and technical initiative to transform the Kingdom’s digital payments landscape, shifting from traditional banking to establishing a global financial hub, opening the sector to regulated foreign investment, and licensing more international electronic payment applications.
The effort forms part of a broader initiative to enhance the competitiveness of the national economy and solidify Saudi Arabia’s position as a regional and global financial hub.
The push includes updating regulatory frameworks, enabling payments companies, e-wallet providers, and foreign-owned exchange houses, as well as expanding the acceptance of international wallets and applications at points of sale and across e-commerce platforms.
The measures are intended to broaden payment options for individuals, visitors, and investors, raise efficiency in the financial sector, and enhance the appeal of the Saudi market to global capital.
Within this framework, Abdulelah Aldeheem, Assistant Governor for Executive Affairs at the Saudi Central Bank, told Asharq Al-Awsat that the central bank’s new strategy aims to create a society that is less dependent on cash while ensuring the highest levels of cybersecurity and consumer protection.
Aldeheem said the central bank continuously analyzes global developments in payments and adapts them to local market needs. Through ongoing cooperation with peer central banks and international organizations, it monitors and evaluates innovations, exploring modern technologies to keep pace with the rapid changes in this vital and sensitive sector, while safeguarding financial stability.
He stated that the central bank is committed to adopting and integrating the latest technologies to deliver advanced and secure financial services that meet user expectations, thereby reinforcing Saudi Arabia’s standing as a leading financial center in the region.
This work aligns with the bank’s strategy to enhance the payments ecosystem by providing secure and reliable core payment services that ensure interoperability and ease of access.
Broad regulatory powers over payments
Aldeheem stated that the Saudi Central Bank is the authority responsible for supervising and overseeing the payments sector, exercising all powers necessary to ensure financial stability, encourage innovation, and protect customers, in accordance with the Payments and Payment Services Law and its executive regulations.
These powers include issuing rules, regulations, and instructions governing payment systems and services, licensing and renewing payment system operators, setting capital, governance, and risk management requirements, classifying systemically important payment systems, overseeing payments infrastructure to ensure efficiency and continuity, obliging providers to safeguard and segregate customer funds and data, and conducting inspections and supervision.
Consumer protection at the core
On consumer protection, Aldeheem said that the central bank prioritizes protecting customers in the financial sector in line with international best practices. Regulatory frameworks require payment service providers to comply with provisions related to framework agreements, including the nature of the service, execution timelines, fees, currencies, and complaint handling.
Rules also cover the safeguarding of protected funds, including holding them in separate accounts at licensed banks. Providers are required to offer effective channels for receiving and resolving complaints fairly and transparently, comply with cybersecurity requirements, and adhere to final settlement rules and default management frameworks to protect customer rights.
The central bank licenses two types of payment activities, electronic wallets and payment services. Aldeheem said 28 companies are currently licensed, including 13 e-wallet providers and 15 payment service companies.
Future of ATMs
Despite the rapid growth of electronic payments, Aldeheem said the central bank closely monitors developments related to automated teller machines.
It has established a regulatory and supervisory framework for ATM networks and set clear rules for banks to ensure effective monitoring, thereby encouraging geographic coverage in line with financial inclusion targets, he told Asharq Al-Awsat.
Foreign ownership
Foreign investors can enter the exchange sector by either opening a branch of a foreign company or establishing a local firm. Aldeheem said foreign investors are permitted to own exchange companies in Saudi Arabia with full ownership.
Licenses enable exchange firms to buy and sell foreign currencies, as well as handle imports and exports. He noted that a Saudi company with foreign capital, Global Exchange AS Currency Services Ltd, was licensed in September as part of the sector's regulated opening to foreign investment.
Regulation of buy now, pay later services
Regarding buy-now, pay-later services, Aldeheem stated that the activity is classified as a financing service licensed by the Saudi Central Bank. It provides financing for goods and services without deferred payment costs and, in some cases, covers education or medical expenses, extending beyond traditional consumer finance.
The central bank issued rules governing BNPL companies to protect users, particularly individuals, ensure financing aligns with borrowers’ credit profiles, and safeguard the stability of the sector. The rules were reviewed and updated in November 2024.
Seven companies have been licensed to operate BNPL services, while six others are completing licensing requirements. New financing during the first nine months of 2025 reached about 28 billion riyals ($7.5 billion).
Users aged 25 to 45 accounted for around 67 percent of total financing. Wholesale and retail trade accounted for approximately 70 percent, followed by health services at 9 percent.
Growth in Mada point-of-sale transactions
Aldeheem said transactions processed through the national payments system, Mada, for point-of-sale devices rose 16 percent in 2024 from the previous year, reaching 10.4 billion transactions worth more than 668 billion riyals ($178.1 billion).
The growth coincided with a sharp expansion in POS devices, which exceeded 2.3 million units by the end of October 2025, the highest level on record, reflecting the depth of the shift toward electronic payments in the Saudi market.
Cash and electronic payments
While electronic transactions now account for 79 percent of operations, Aldeheem said the central bank does not aim to eliminate cash entirely. Its objective is to build a society that is less reliant on cash, while maintaining the national currency's acceptance as legal tender.
He stressed that ensuring the availability of all payment options, including cash, supports financial inclusion and serves residents and visitors alike.
Global payment applications
Regarding services such as Apple Pay, Samsung Pay, and Google Pay, Aldeheem explained that the central bank supports new entrants that meet regulatory requirements. Several new electronic payment applications are expected to launch in the near term, supported by interoperable infrastructure that allows seamless use at POS terminals and e-commerce platforms.
Saudi Arabia was among the first countries globally to adopt NFC-based mobile payments, he revealed, adding that the central bank continues to improve user experience while maintaining high security standards.
To facilitate payments for tourists and visitors, the central bank has invested in payments infrastructure for decades, linking global networks including Visa, Mastercard, American Express, UnionPay, Discover, and JCB through the Mada system.
Aldeheem said acceptance of international networks is being expanded in line with growth in tourist numbers. He cited a recent agreement between the Saudi Central Bank and Ant International, which will enable the acceptance of Alipay+ payments via Mada in 2026.
The bank has also worked to reduce the cost of accepting international card payments by reviewing fee structures with payment service providers, banks, and global card networks, supporting competitiveness in sectors such as hospitality and retail.
Unified digital services platform
Aldeheem said the central bank is enhancing its digital channels in line with national digital transformation goals. A unified electronic services portal has been launched, providing over 25 services to individuals, businesses, and government entities.
These include digital government banking services, regulatory sandbox applications, approvals for senior management appointments, ATM licensing, and consumer complaints services.
Digital check clearing and cybersecurity
Among the digital transformation initiatives is electronic check clearing, which processes check data electronically through a central clearing house, enabling settlement within one business day.
On cybersecurity, Aldeheem said requirements are embedded across all digital initiatives, with continuous testing to ensure readiness against evolving threats. National expertise within the central bank plays a key role in monitoring systems and strengthening defenses.
Currency in circulation and counterfeit protection
Addressing the rise in currency in circulation to nearly 250 billion riyals ($66 billion), Aldeheem cited economic growth, higher consumption, increased tourism, and year-round Umrah as key factors contributing to this increase. Cash in circulation accounts for approximately 6 percent of GDP and reflects confidence in the local economy.
Regarding counterfeiting, he stated that the sixth currency issue, printed under Custodian of the Holy Mosques King Salman bin Abdulaziz Al Saud, incorporates advanced security features.
The central bank has conducted awareness campaigns and training sessions for banks, customs officials, security agencies, and private sector workers to maintain trust in the national currency as a reliable means of payment and savings.
