Riyadh’s Record-Breaking Point-of-Sale Payments in March Driven by Food and Beverages
In a stunning revelation, official data has shown that point-of-sale payments in Saudi Arabia skyrocketed to a record SR59.68 billion ($15.91 billion) in March, with food and beverages transactions playing a significant role in this surge.
Factors Driving the Increase in Spending
Figures released by the Saudi Central Bank, also known as SAMA, indicate an 8 percent annual increase in spending across all sectors. The holy month of Ramadan likely played a crucial role in boosting expenditures, along with an expanding market offering flexible payment options.
Breakdown of Spending Categories
During March, spending on food and beverages accounted for the largest portion, making up 17 percent of total payments. Expenditures on restaurants, cafes, and miscellaneous goods and services each represented 12 percent of overall spending.
Consumer Behavior Trends in Saudi Arabia
Redseer Strategy Consultants predicted a surge in consumer spending during Ramadan, with 62 percent of Saudi respondents planning to increase their expenditures. The market’s focus on flexible payment options and exclusive high-quality products is driving this upward trend.
Shift in Consumer Preferences
While consumers in the UAE prioritize affordability, Saudi Arabia’s market is experiencing growth and placing a notable emphasis on platform and experience-related aspects. Flexible payment options and strong customer support are becoming increasingly important, signaling a shift in consumer preferences.
Growth Drivers and Spending Patterns
SAMA data revealed that increased spending on miscellaneous goods and services, clothing and footwear, and food and beverages were the primary drivers of growth in March. The rise in online payments and digitalization is reshaping the retail landscape and impacting consumer behavior.
Challenges and Risks in Online Transactions
With the rise of e-commerce and digital transactions, the proliferation of fraudulent sites and cybercriminals targeting unsuspecting users has become a significant concern. Consumers are advised to remain vigilant and report any suspicious activities to mitigate potential fraud risks.