Saudi E-commerce Sales Skyrocketing Through Mada Cards
In a digital era, Saudi Arabia’s e-commerce sales via Mada cards have seen a tremendous 28 percent annual increase, reaching a whopping SR16.22 billion ($4.32 billion) in May.
The Saudi Central Bank’s data reveals that this surge includes online shopping, in-app purchases, and e-wallet transactions, showcasing a growing trend towards digital payment methods among consumers.
The Rise of Mada Transactions
Transactions using Mada cards have jumped by 30 percent year-on-year, totaling SR91.87 million in May 2024. This significant increase from the previous year indicates a shift towards digital payments and a preference for secure and reliable transactions.
Vision 2030 Driving Cashless Economy
SAMA’s Mada scheme, aligned with Vision 2030, aims to enhance Saudi Arabia’s digital payment infrastructure, promoting a cashless economy and fostering financial inclusion. The initiative supports e-commerce, point-of-sale, and ATM growth, enabling real-time transactions for various purposes.
E-commerce Boom in Saudi Arabia
With the electronic retail industry in Saudi Arabia witnessing rapid growth, technological advancements, high mobile and internet penetration rates, and a tech-savvy population are driving the e-commerce sector forward. E-commerce is expected to represent over 25 percent of retail sales in Saudi Arabia by 2035.
Middle East’s Digital Retail Powerhouses
Saudi Arabia and the UAE are leading the digital retail revolution in the Middle East, with significant growth anticipated in the coming years. Reports indicate a doubling in the number of online shoppers in these countries over the past two years, showcasing the region’s digital retail potential.
Future Outlook for E-commerce in Saudi Arabia
As smartphone and internet access continue to expand, e-commerce in Saudi Arabia is poised for further growth. With advancements in digital payment systems, AI-driven personalization, and logistics infrastructure improvements, online shopping is becoming more convenient and appealing to consumers.