Approximately 56 per cent of retail consumers in Saudi Arabia use mobile wallets every day, according to a newly released report by GfK consulting service.
Managing Director of GfK in Mena, Nacho San Martin, said: “According to our recently released GfK Consumer Pulse MENA3 Study 2022, consumers in Saudi Arabia are receptive to exciting new things entering their lives: they are considering acquiring an EV, their lifestyle is becoming more digital, not only in the sense of online shopping, but they are also beginning to investigate AR or the Metaverse.
“The Saudi consumers are similarly affected by global trends and are concerned about inflation as they are becoming more price-sensitive and willing to trade down, resulting in more strategic purchasing decisions.”
Two years ago, The Saudi Arabia Monetary Authority approved two digital financial services companies to launch e-wallet services in a bid to diminish the country’s reliance on physical cash.
According to the PayNXT360 consulting form, the mobile payment industry in Saudi Arabia is expected to record a compound annual growth rate of 18.2 per cent to reach $ 20,824.7 million by 2025. The mobile wallet payment segment in value terms was forecast to grow at a compound annual growth rate of 17.4 per cent between 2018 and 2025.
STC Pay, UR Pay, Alinma Pay and Friendy pay are among the top digital wallet options among the kingdom’s consumers.
“With more and more people embracing the convenience of digital wallets, coupled with the reassurance of their transactions being safe and secure, digitisation of the payment system is unstoppable,” said Mo Yusuf, regional manager for the Mena region and Pakistan at Checkout.com.
Around 48 per cent of respondents of a recent Checkout.com survey admitted that, at this rate, the prevalence of digital wallets could usher in a cashless society in 10 years.
