Cash is Out: 70% of Saudis Are Paying Electronically

As recently announced by the Saudi Central Bank (SAMA), 70% of Saudi payments were electronic in 2023, up from 62% in 2022. Nearly everyone (96%) used NFC for quick and easy payments, showing a strong preference for phone-based transactions.

The growing preference for digital payments over cash or cards is reshaping the country’s financial landscape. Both the government and businesses are closely monitoring this shift in how money flows within the nation.

What’s Making This Happen?

A big reason for this change is a plan called the ‘Financial Sector Development Program.’ It’s part of Saudi Arabia’s Vision 2030, which aims to make the economy stronger.

This program is all about making banks and money-related businesses better and helping new tech companies get started. Also, the government has made it a rule for stores to use special machines for payments, which has made it easier for people to pay electronically.

What It Means for the Economy

This shift to e-payments could have a big impact on Saudi Arabia’s economy. By using phones and computers to pay, things could get done faster and with fewer mistakes.

This will also help the government track where money is going, which is important for making smart decisions about the economy. Plus, it could encourage more people to spend money, bring more people into the financial system, and help small businesses grow.

Overall, it’s a step towards making Saudi Arabia’s economy stronger and more modern.

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