The Saudi Central Bank (SAMA) launched on Thursday the instant payments system, effective from Feb. 21.
This follows the successful launch of the first phase of the trial to activate the system with a number of Saudi local banks.
The system will enable financial institutions, companies, and individuals to complete instant transfers among various banks within 24 hours, seven days a week.
The Central Bank stated that the system, developed by Saudi Payments, a wholly-owned subsidiary of SAMA, will reinforce economic development.
It will also contribute to increasing transparency in payments between companies and individuals, activating innovation in financial services, as well as upgrading services provided to beneficiaries.
The system further increases the effectiveness of financial transactions among all parties in the corporate and retail sectors and enables banking institutions and financial technology companies to improve financial products and manage cash flows in businesses.
The Central Bank's statement emphasized that the system works seamlessly between Saudi banks and financial technology companies, and it helps reduce operational costs and provide innovative solutions to the financial sector.
SAMA will supervise the new system which, it said, would achieve the Saudi Vision 2030 objective in making the Kingdom less dependent on cash.
Two years ago, SAMA, represented by Saudi Payments, inked a deal with Vocalink and IBM to develop the financial sector infrastructure. It expected an increase of digital payments by 15 percent, which will lead to saving SAR16 billion ($4.2 billion) from the cost of cash during the first five years of operation.
