Saudi Arabia's Card Payments Market to Reach SR705.2 Billion by 2028: GlobalData
The text discusses the anticipated growth of cashless payments in Saudi Arabia.
According to a report by GlobalData, cashless payments are projected to increase by 7.6 percent in 2024 to SR550 billion ($146.8 billion), up from SR511.5 billion the previous year.
The Saudi card payments market is expected to expand at an annual rate of 6.4 percent from 2024 to 2028, reaching SR705.2 billion.
This growth is attributed to the Saudi government's efforts to promote a cashless society and the increasing preference for electronic payments among consumers.
Traditional cash usage is declining as a result.
Saudi Arabia has a strong digital payment infrastructure, which includes a growing card market and an established card acceptance infrastructure.
The government is working to expand this infrastructure by encouraging merchants to offer electronic payment options beyond cash.
While cash remains popular for smaller transactions, its use is decreasing.
The goal is to increase electronic payments to 70% of all transactions by 2025 as part of Saudi Arabia's Vision 2030 plan to reduce cash transactions.
The COVID-19 pandemic led to an increase in contactless payments among Saudi consumers, with 363.4 million transactions using NFC-enabled mada cards in February 2024, compared to 331.7 million in February 2023.
Debit cards are the preferred choice for payments in the Kingdom, accounting for 85% of the overall card payment value in 2023.
This trend is attributed to the government's financial inclusion initiatives, consumers' preference for debt-free payments, and prudent consumer spending.
Saudi consumers are gradually shifting from cash to electronic payments, with the support of government push, improved payment infrastructure, growing consumer awareness, and the adoption of newer technology like contactless.
In April, the Saudi Central Bank reported a 20% annual increase in point-of-sale (POS) payments in February, amounting to SR53.72 billion.
The largest category of spending was on beverages and food, which accounted for 15.7% or SR8.43 billion.
Restaurants and cafes came in second, with 15% of the total spending, amounting to SR8.02 billion.
The Saudi card payments market is expected to expand at an annual rate of 6.4 percent from 2024 to 2028, reaching SR705.2 billion.
This growth is attributed to the Saudi government's efforts to promote a cashless society and the increasing preference for electronic payments among consumers.
Traditional cash usage is declining as a result.
Saudi Arabia has a strong digital payment infrastructure, which includes a growing card market and an established card acceptance infrastructure.
The government is working to expand this infrastructure by encouraging merchants to offer electronic payment options beyond cash.
While cash remains popular for smaller transactions, its use is decreasing.
The goal is to increase electronic payments to 70% of all transactions by 2025 as part of Saudi Arabia's Vision 2030 plan to reduce cash transactions.
The COVID-19 pandemic led to an increase in contactless payments among Saudi consumers, with 363.4 million transactions using NFC-enabled mada cards in February 2024, compared to 331.7 million in February 2023.
Debit cards are the preferred choice for payments in the Kingdom, accounting for 85% of the overall card payment value in 2023.
This trend is attributed to the government's financial inclusion initiatives, consumers' preference for debt-free payments, and prudent consumer spending.
Saudi consumers are gradually shifting from cash to electronic payments, with the support of government push, improved payment infrastructure, growing consumer awareness, and the adoption of newer technology like contactless.
In April, the Saudi Central Bank reported a 20% annual increase in point-of-sale (POS) payments in February, amounting to SR53.72 billion.
The largest category of spending was on beverages and food, which accounted for 15.7% or SR8.43 billion.
Restaurants and cafes came in second, with 15% of the total spending, amounting to SR8.02 billion.
Translation:
Translated by AI
