Saudi Arabia’s card payments market is anticipated to experience robust growth, expanding by 14.6% to reach 532.1 billion Saudi riyals ($141.9 billion) in 2023. This surge is propelled by the increasing popularity of contactless payments and the Saudi government’s endeavor to establish a cashless society, according to a report by London-based data and analytics firm GlobalData.
In recent years, card payment value in the kingdom has witnessed significant growth, with a notable increase of 29.8% in 2021 and 17.3% in 2022. This upward trajectory can be attributed to improved economic conditions and heightened consumer spending.
Traditionally, cash has been the preferred payment method in Saudi Arabia. However, as consumer preferences shift towards electronic payments, the usage of cash is on the decline. The COVID-19 pandemic further accelerated the trend, as banks and merchants encouraged non-cash payment methods to mitigate the spread of the virus.
Saudi Arabia’s Vision 2030 plan aims to diminish cash transactions and raise the share of electronic payments to 70% of all transactions by 2025. This ambitious target is expected to significantly benefit the adoption and usage of debit and credit cards.
Saudi Payments, the country’s national payment infrastructure operator, reported that 95% of all point of sale (POS) transactions in 2021 were contactless. Debit cards currently dominate the card payment landscape, accounting for 89% of the total card payment value in 2022.
Driven by the government’s initiatives and the continuous enhancement of payment infrastructure, Saudi consumers are gradually embracing electronic payments while moving away from cash.
Looking ahead, it is projected that the kingdom’s card payments market will maintain a strong compound annual growth rate (CAGR) of 10.2% between 2023 and 2027, reaching 785.8 billion Saudi riyals ($209.5 billion) in 2027, as predicted by Ravi Sharma, Lead Banking and Payments Analyst at GlobalData.
