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E-Payments Hit Record Figure in Saudi Arabia

E-Payments Hit Record Figure in Saudi Arabia
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E-Payments Hit Record Figure in Saudi Arabia

E-Payments Hit Record Figure in Saudi Arabia

Saudi Payments, a Saudi Arabian Monetary Authority (SAMA) subsidiary, has revealed an unprecedented figure for e-payments.

Such payments exceeded two billion transactions through points of sale (POS) in the Kingdom since early 2020 until mid-October, with an increase of more than 69 percent compared to the same period last year.

The total purchasing value amounted to SAR269 billion ($71.7 billion), an increase of about 21 percent compared to the same period in 2019.

Also, an increase was recorded in the number of POS devices to more than 614,000 in various retail sectors across the Kingdom.

Payments made through Apple Pay and Mada Pay accounted for 25 percent of the total number of transactions on POS devices until the end of Q3 2020.

According to a statement issued on Tuesday, “this increase in the number of e-payments comes in line with Saudi Payments efforts to achieve the goals of the Financial Sector Development Program” as part of the Kingdom’s Vision 2030.

The program seeks making the Saudi community less dependent on cash by reaching 70 percent of e-transactions by 2030, the statement added.

To achieve this target, Saudi Payments has been working on raising the efficiency of financial transactions for all business sectors through the permanent development of the national payments system’s infrastructure to provide more flexibility and security in various means of e-payments.

The statement further noted that many factors have helped the Kingdom reach this new record, including coordination and joint efforts among SAMA, the national anti-commercial concealment program and Saudi Payments.

This cooperation has contributed to compelling e-payment methods in the retail sector starting from late August, including gas stations, shops selling auto parts, clothes, foodstuffs, mobiles, personal service activities (laundries, beauty salons and barbershops) and other commercial sectors.

Saudi Payments CEO Fahd al-Akeel said this new record reflects the success of the company in helping the society be less dependent on cash transactions.

“We seek to bolster the infrastructure for payments and e-commerce in the coming period,” he stated, adding that this includes facilitating payment processes, which will contribute to providing a smoother experience for consumers in the Kingdom.

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FILE PHOTO: A 3D-printed miniature model of US President Donald Trump, US Flag and word "Tariffs" are seen in this illustration taken, April 2, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: A 3D-printed miniature model of US President Donald Trump, US Flag and word "Tariffs" are seen in this illustration taken, April 2, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
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Where Trump's Tariffs Could Hurt Americans' Wallets

FILE PHOTO: A 3D-printed miniature model of US President Donald Trump, US Flag and word "Tariffs" are seen in this illustration taken, April 2, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: A 3D-printed miniature model of US President Donald Trump, US Flag and word "Tariffs" are seen in this illustration taken, April 2, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

As global financial markets plunge in the wake of US President Donald Trump's "Liberation Day" tariffs, Americans must also grapple with the potentially long-lasting impact of the move on household budgets.

The tariffs -- which are paid in the first instance by US importers -- will likely push up the price of many household items in the United States and reduce consumers' spending power.

Grocery store costs

The US imports a growing share of the fresh fruits and vegetables consumed each year, according to the US Department of Agriculture (USDA).

Many of the fresh goods come from Canada and Mexico, two countries not immediately affected by the tariffs announced Wednesday.

But other goods will be hit by the stinging duties set to come into effect this month.

For example, the United States imports large quantities of bananas from the Latin American countries of Guatemala, Ecuador and Costa Rica, which will all face a 10 percent tariff from April 5.

Coffee -- around 80 percent of which is imported, according to the USDA -- is likely to see a price increase, given that top exporters Brazil and Colombia will also face the new baseline 10 percent rate.

Olive oil and alcohol imports from Italy, Spain and Greece will be hit with a new 20 percent levy against the European Union from April 9.

And Thai jasmine rice and Indian basmati rice will face tariffs of 36 percent and 26 percent respectively, while Indian shrimp -- which the US imports large quantities of -- will face the same 26 percent rate.

Electronics and cars

Consumer electronics are also set to be hit with steep tariffs this month, given how many of products are manufactured or assembled in India and China.

Despite moves to expand its supply chain, Apple still makes the vast majority of its iPhones in China, through supplier Foxconn, where hardware exports will be hit with a tariff totaling 54 percent from April 9.

Apple analyst Ming-Chi Kuo predicted that US buyers of high-end iPhones, who account for as much as 70 percent of sales, are "relatively more accepting of price increases."

On top of the measures announced Wednesday, the Trump administration has also rolled out a 25 percent tariff against vehicles not made in the United States -- a step analysts have warned could add thousands to the cost of the average car.

Shoes, clothes

Shares of clothing and textile companies, which rely on cheap labor in countries including China and Vietnam, fell sharply Thursday, with Nike sinking more than 13 percent and Gap tanking more than 20 percent.

The new tariffs announced Wednesday mean imports to the United States from China and Vietnam will be taxed at 54 percent and 46 percent respectively.

Yale's Budget Lab estimated the effect of recent tariffs, up to and including Wednesday's announcement, would cause a 17 percent rise in the cost of clothing and textiles.

The think tank calculated that the overall effect on prices of the tariffs announced so far was equivalent to an average per household consumer loss of $3,800.

Speaking to reporters on Thursday, Trump insisted that tariffs would make the United States "very rich."

"The operation is over," he said, referring to the recent tariff announcement. "And now we let it settle in."