Saudi Arabia Sees 20% Surge in POS Payments, Reaching SR53.72 Billion in February
In a significant development, payments made through point-of-sale terminals in Saudi Arabia witnessed a remarkable 20 percent annual increase in February, totaling an impressive SR53.72 billion ($14.33 billion), as per the latest data released.
Top Categories in POS Spending
According to the data from the Saudi Central Bank, the largest portion of POS spending in February was attributed to beverages and food, making up 15.7 percent of the total at SR8.43 billion. Following closely was spending on restaurants and cafes, accounting for 15 percent of the total and reaching SR8.02 billion.
Digital Transformation Drive in the Kingdom
The surge in POS payments reflects Saudi Arabia’s commitment to digital transformation and investments in a technology-centric future. The nation is actively pursuing initiatives to foster sustainable urban development and a thriving digital economy.
NFC Technology Revolutionizes Contactless Payments
More than 93 percent of sales transactions in Saudi Arabia utilize near-field communication (NFC) technology through mobile phones and cards. NFC has revolutionized contactless payments, allowing transactions to be completed with a simple tap, providing speed and hygienic benefits by minimizing physical contact.
Shift Towards Digital Methods
Data from the central bank indicated the closure of 349 ATMs since February 2023, signaling a shift from physical cash towards digital methods. The issuance of 5.4 million cards during this period further supports this transition.
Notable Increase in Miscellaneous Goods Spending
There was a significant rise in spending on miscellaneous goods and services, such as personal care items, supplies, maintenance, and cleaning, constituting the largest share of the total increase in POS sales. This category accounted for 12 percent of total expenditure in February 2024, reaching SR6.5 billion and experiencing a growth rate of 39 percent.
POS Sales Trends by Category
Among all categories, POS payments for miscellaneous goods showed the highest growth rate, followed by hotels with a 28 percent increase. Beverages, food, and jewelry also saw boosts of 23 percent and 21 percent, respectively.
Regional Breakdown of POS Sales
Riyadh led the POS sales, accounting for 34 percent of the total, with Jeddah following at 14 percent. The capital city’s rapid population growth and urbanization have solidified its position as a bustling hub for sales transactions.