Saudi Arabia’s E-Commerce Landscape Booming with 53% of Customers Planning to Increase Online Spending
The digital marketplace in Saudi Arabia is experiencing rapid growth, with a survey showing that 53 percent of customers in the Kingdom are looking to boost their online spending in the next 12 months. According to a report by UK-based tech firm checkout.com, the number of consumers in Saudi Arabia who shop regularly on e-commerce platforms has increased by 180 percent in the past four years.
Surge in Online Purchases and Digital Payments
The analysis also revealed a 90 percent surge in individuals making online purchases at least once a day since 2020. checkout.com stated, “Amidst an era marked by swift digital transformation, Saudi Arabia’s digital payments ecosystem has demonstrated exceptional growth, while Saudi consumers continue to be increasingly enthusiastic about online shopping.”
Transition to Digital Payments and Cashless Transactions
Highlighting the growth of digital payments in the Kingdom, the study noted that consumers preferring cash on delivery for online purchases declined by 66 percent since 2020. 75 percent of online shoppers in Saudi Arabia indicated they would opt for card payments if the cash on delivery option is unavailable.
Regional Perspective on Digital Payments
The report also underscored the fast adoption of digital payments by consumers in the Middle East and North Africa, with the overall volume of transactions in the region growing nearly sevenfold at 678 percent since 2020. A study by Arthur D. Little suggested that Saudi Arabia’s fintech sector has made significant strides towards becoming a regional financial hub.
Projected Growth in Cashless Payments in Saudi Arabia
An analysis by GlobalData projected that cashless payments in Saudi Arabia are expected to surge by 7.6 percent in 2024 to SR550 billion ($146.8 billion). The Saudi card payments market is also expected to grow at an annual rate of 6.4 percent between 2024 and 2028 to reach SR705.2 billion.