RIYADH: Saudi Arabia’s e-commerce sales via Mada cards saw an annual rise of 13 percent in June to reach SR15.14 billion ($4.04 billion).
Data from the Saudi Central Bank, also known as SAMA, indicates that this included online shopping, in-app purchases, and e-wallet transactions but did not include payments using different credit cards.
The number of purchases using Mada cards increased by 19 percent year-on-year, totaling SR88.78 million in June, up from 74.8 million the previous year — a sign that consumers are increasingly comfortable and reliant on digital payment methods.
SAMA’s Mada scheme aims to promote digital payments in the Kingdom, mainly supporting e-commerce and point-of-sale transactions.
This initiative is part of Vision 2030, which strives to develop Saudi Arabia’s digital payment infrastructure to encourage a cashless economy, expand financial inclusion, and drive sector innovation.
The electronic retail industry in the Kingdom is rapidly growing, driven by technological advancements, high mobile and internet penetration rates, and a young, tech-savvy population.
SAMA’s data for July highlighted a significant shift toward digital payments, evidenced by the closure of 373 ATMs and the issuance of 3.86 million new cards since June of the previous year.
Cash transactions are also decreasing, with withdrawals from banks and Mada cards declining by 10 percent and 11 percent, respectively. Total cash disbursements through these two methods dropped to SR44.78 billion from SR50.17 billion, further highlighting the ongoing shift toward digital payment methods.
Cashless payments in Saudi Arabia are projected to rise by 7.6 percent in 2024, reaching SR550 billion compared to SR511.5 billion in the previous year, according to an April report by Global Data.
The company also predicted that the Saudi card payments market will grow at an annual rate of 6.4 percent between 2024 and 2028, reaching SR705.2 billion.
This shift is supported by a robust digital payment infrastructure, a developing market, and a well-established card acceptance network.
Debit cards currently dominate the market, according to the report, accounting for 85 percent of the total payment value in 2023.
Global Data highlighted that the government’s financial inclusion initiatives, consumers’ preference for debt-free payments, and careful customer spending have contributed to the dominance of debit cards in Saudi Arabia.
Source: Arab News
