Adoption of Digital Payments in Saudi Arabia
As part of Vision 2030, the government has set a target of achieving 70% cashless payments by 2030. The Kingdom has done so well on working towards this target, that some claim they are aiming to achieve this target by 2025. This means that the government wants 70% of all transactions to be conducted digitally, without the exchange of physical cash. In 2021, Saudi Payments collaborated with IBM and Mastercard to launch instant payments system “Sarie” leading to adoption of faster payments, in line with Vision 2030’s cashless aims.
According to the Saudi Fintech National Adoption Survey, 74% of individuals have used at least one fintech solution, the majority being under the age of forty. 91% of individuals are aware of e-payments, and two-thirds (69%) regularly use these solutions. The Financial Sector Development Program (FSDP) also set a target for the share of electronic payments in retail to be 55% of total transactions, which was surpassed in 2021 when digital payments reached 57%.