Retail Consumer Electronic Payments Surge in Saudi Arabia, Accounting for 70% of Total Transactions in 2023
In a remarkable development, official data has revealed that the share of retail consumer electronic payments in Saudi Arabia skyrocketed to 70 percent of total transactions in 2023, up from 62 percent in the previous year. This surge is attributed to the substantial growth of transactions processed through national payment systems, totaling 10.8 billion deals compared to 8.7 billion in the previous year, according to the Saudi Central Bank, also known as SAMA.
Financial Sector Development Program and Saudi Vision 2030 Driving the Shift
The increase in retail consumer e-payments aligns with the objectives of the Financial Sector Development Program, which serves as a significant key performance indicator within the plan. This program, a cornerstone of the Saudi Vision 2030 initiative, aims to create a diversified and efficient financial services sector to bolster the development of the national economy.
SAMA’s Ongoing Efforts to Boost Digital Transactions
SAMA’s ongoing efforts to offer more options and encourage the adoption of digital transactions by further developing the national payments infrastructure and enhancing related services have played a crucial role in this shift. The central bank has reaffirmed its commitment to collaborating with its partners to facilitate economic activities.
Thriving Fintech Sector and Growth of Financial Technology Companies
In recent years, Saudi Arabia has witnessed rapid growth in the adoption of e-payments, driven by an integrated, strategic, and collaborative approach across the financial community. The evolving cost-effective and reliable commerce system has improved transaction efficiency and backed financial stability.
A top official of the central bank highlighted the thriving fintech sector in Saudi Arabia, noting that the share of digital payments had reached 62 percent, close to the target of 70 percent by the end of 2025. Speaking at a digital conference in Riyadh, Khalid Al-Dhaher, vice governor for supervision and technology at SAMA, emphasized the growth of the Kingdom’s financial sector since the launch of Vision 2030. He mentioned that the number of financial technology companies had reached 183 companies by the end of the second quarter of 2023, representing 80 percent of the target set for 2025.