Saudi Arabia's Cashless Payments Surge Towards $146.8 Billion by 2024

Cashless payments in Saudi Arabia are projected to experience a significant increase, with expectations to reach SR550 billion ($146.8 billion) by 2024, marking a 7.6 percent surge from the previous year's total of SR511.5 billion. This growth is attributed to the country's ongoing shift towards electronic payments, driven by the government's initiatives to promote a cashless society.

The Saudi card payments market is forecasted to expand at an annual rate of 6.4 percent between 2024 and 2028, aiming to hit SR705.2 billion. This upward trend reflects the rising consumer preference for digital transactions over traditional cash payments.

Despite the historical reliance on cash in Saudi Arabia, the usage of physical currency is on the decline as electronic payment methods gain popularity. The country boasts a robust digital payment infrastructure, complemented by a well-established card acceptance network, facilitating the transition towards cashless transactions.

Efforts by the Saudi government to enhance the payment infrastructure include encouraging merchants to adopt electronic payment options alongside cash, aligning with the national goal of reducing cash transactions and increasing electronic payments to 70 percent by 2025 under Vision 2030.

The impact of the COVID-19 pandemic has further accelerated the adoption of contactless payments among Saudi consumers, with an increasing number opting for this convenient and hygienic payment method. Contactless card usage has seen a notable uptick, with the Saudi Arabian central bank reporting a rise in transactions using NFC-enabled mada cards.

Debit cards currently dominate the card payment landscape in Saudi Arabia, constituting 85 percent of the total card payment value in 2023. This preference is attributed to the government's financial inclusion initiatives, consumer preference for debt-free transactions, and prudent spending habits.

Overall, the shift towards electronic payments in Saudi Arabia is driven by a combination of government support, improved payment infrastructure, heightened consumer awareness, and the adoption of innovative technologies like contactless payments. The country's journey towards a cashless society is well underway, with digital transactions poised to reshape the future of payments in the Kingdom.