{"id":23784,"date":"2023-08-04T13:43:53","date_gmt":"2023-08-04T13:43:53","guid":{"rendered":"https:\/\/www.meretailnews.com\/?p=23784"},"modified":"2023-08-04T13:44:10","modified_gmt":"2023-08-04T13:44:10","slug":"saudi-card-payments","status":"publish","type":"post","link":"https:\/\/www.meretailnews.com\/2023\/08\/04\/saudi-card-payments\/","title":{"rendered":"Saudi card payments market to grow by 14.6 per cent in 2023, GlobalData predicts"},"content":{"rendered":"


\nThe Saudi card payments<\/a> market is forecast to grow by 14.6 per cent this year, reaching SAR532.1 billion ($141.9 billion), driven by consumers\u2019 increasing preference for electronic payments, a surge in contactless payments and the government\u2019s drive for a cashless society, according to\u00a0<\/span>GlobalData<\/span><\/a>.<\/span><\/p>\n

The total card payments value in Saudi Arabia registered a growth of 29.8 per cent in 2021 and 17.3 per cent in 2022, spurred on by improved economic conditions and an increase in consumer spending, the data shows.<\/span><\/p>\n

Lead banking and payments analyst at GlobalData, Ravi Sharma, said: \u201cWhile cash has traditionally been a preferred method of payment in Saudi Arabia, its usage is on the decline in line with the rising consumer preference for electronic payments.\u00a0<\/span><\/p>\n

“This trend became more prevalent amid Covid-19, with banks and merchants urging consumers to use non-cash payment methods to help contain the spread of the virus. The increasing preference for contactless payments and the mandatory acceptance of electronic payments at retail stores are among the key drivers of payment card market growth.\u201d<\/span><\/p>\n

SAMA’s role<\/span><\/h3>\n

On August 25, 2020, in a bid to incentivise e-payments, the Saudi central bank (SAMA) passed a regulation that requires all retailers operating in the country to provide their customers with electronic payment options via POS terminals or QR codes.<\/span><\/p>\n

This decision came as the sixth phase of the initiative, with electronic payment methods availability made mandatory at fuel stations in the first phase effective from July 2019. In the retail sector, this was further extended to grocery stores in phase four.<\/span><\/p>\n

Saudi Vision 2030\u00a0<\/span><\/h3>\n

\u201cThe government has also been taking several initiatives to reduce the country\u2019s dependence on cash and to promote electronic payments and payment innovation,” added Mr Sharma.<\/span><\/p>\n

“The Kingdom\u2019s Vision 2030 plan is aimed at reducing cash transactions and increasing the share of electronic payments to 70 per cent of all transactions by 2025. This will greatly benefit card adoption and usage.\u201d<\/span><\/p>\n

The lockdown and restrictions has radically transformed the way Saudi consumers make payments, as more and more consumers opted for contactless payments bolstered by an improved payment infrastructure.<\/span><\/p>\n

As a result, Saudi Payments, 95 per cent of all POS transactions in the country were contactless in 2021, according to the country\u2019s national payment infrastructure operator.<\/span><\/p>\n

\u201cSaudi consumers are gradually embracing electronic payments, moving away from cash, supported by government push, improvements in payment infrastructure, growing consumer awareness, and rising adoption of newer technology like contactless,” concluded Mr Sharma.<\/span><\/p>\n

“The Saudi Arabia card payments market is forecast to grow at a strong compound annual growth rate of 10.2 per cent between 2023 and 2027.”<\/span><\/p>\n

In May, ACI Worldwide’s study found that Saudi Arabia broke into the global Top 10 for mobile wallet adoption \u2013 taking the ninth place \u2013 with 80 per cent of Saudi consumers stating they are avid mobile wallet users.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Saudi card payments market is bound to hit SAR532.1 billion, according to\u00a0GlobalData<\/p>\n","protected":false},"author":38,"featured_media":18232,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[1093,3988,2683],"_links":{"self":[{"href":"https:\/\/www.meretailnews.com\/wp-json\/wp\/v2\/posts\/23784"}],"collection":[{"href":"https:\/\/www.meretailnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.meretailnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.meretailnews.com\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.meretailnews.com\/wp-json\/wp\/v2\/comments?post=23784"}],"version-history":[{"count":3,"href":"https:\/\/www.meretailnews.com\/wp-json\/wp\/v2\/posts\/23784\/revisions"}],"predecessor-version":[{"id":23787,"href":"https:\/\/www.meretailnews.com\/wp-json\/wp\/v2\/posts\/23784\/revisions\/23787"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.meretailnews.com\/wp-json\/wp\/v2\/media\/18232"}],"wp:attachment":[{"href":"https:\/\/www.meretailnews.com\/wp-json\/wp\/v2\/media?parent=23784"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.meretailnews.com\/wp-json\/wp\/v2\/categories?post=23784"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.meretailnews.com\/wp-json\/wp\/v2\/tags?post=23784"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}