Saudi Arabia Leads Digital Transformation with NFC Technology

In February, Saudi Arabia witnessed a significant 20% annual increase in point-of-sale (POS) payments, totaling SR53.72 billion ($14.33 billion). The data released by the Saudi Central Bank highlighted that the majority of POS spending was directed towards beverages, food, restaurants, and cafes. This surge reflects the Kingdom's commitment to digital transformation and investment in a technology-driven future.

POS transactions are where purchases are made in-store, either at the cash register or by swiping a card. Over 93% of these transactions in Saudi Arabia now utilize near-field communication (NFC) technology through mobile phones and cards. NFC has revolutionized contactless payments, offering speed and hygiene benefits by enabling transactions with a simple tap.

The data also revealed a shift from physical cash to digital methods, with a notable increase in spending on miscellaneous goods and services. Categories like personal care items, supplies, maintenance, and cleaning saw a significant rise, indicating a growing preference for digital payments.

Riyadh emerged as the leader in POS sales, accounting for 34% of the total, followed by Jeddah with 14%. The capital city's rapid population growth and urbanization have transformed it into a vibrant commercial center, driving a substantial portion of sales transactions.

This trend underscores Saudi Arabia's embrace of digital innovation and its efforts to foster a thriving digital economy. As businesses and consumers increasingly adopt NFC technology, the landscape of payment systems in the Kingdom continues to evolve towards efficiency, speed, and enhanced security.