SAMA: E-Payments Hit 79% of Retail Payments in 2024

Electronic payments accounted for 79% of total retail payments in Saudi Arabia during 2024, up from 70% in 2023, according to an official announcement by the Saudi Central Bank (SAMA). The milestone, released via the Saudi Press Agency on April 15, 2025, underscores the Kingdom’s rapid transformation into a digital-first economy and represents a significant step toward the objectives of the Financial Sector Development Program (FSDP), a key initiative under Saudi Vision 2030. With 12.6 billion non-cash transactions processed in 2024 compared to 10.8 billion in 2023, the data reveals not only growing consumer confidence in digital payment channels but also the success of sustained strategic investments in national payment infrastructure. How did Saudi Arabia achieve such a sweeping shift in payment behavior in just a few years? The answer lies in a coordinated national effort led by SAMA, in collaboration with the financial sector, to expand payment options, enhance security, and reduce reliance on cash.

The announcement highlights the growing maturity of the Kingdom’s financial ecosystem. The rise from 70% to 79% in a single year is a testament to the widespread adoption of digital solutions such as mobile wallets, contactless cards, and online banking. This progress is not merely a technological achievement but a cultural and economic shift that aligns with Vision 2030’s goal of building a diversified, resilient economy. As more Saudis and residents embrace digital payments, the benefits ripple across the economy—from improved efficiency for businesses to greater financial inclusion for individuals. The Saudi Central Bank’s continued focus on innovation and infrastructure development signals that this trajectory is set to accelerate, positioning the Kingdom as a regional leader in financial technology.

Context and Background

Why has Saudi Arabia placed such a strong emphasis on digital payments? The answer is rooted in the Kingdom’s long-term vision for economic diversification and modernization. For decades, cash dominated retail transactions in Saudi Arabia, as in many other economies. However, the launch of Vision 2030 in 2016 marked a turning point, with the Financial Sector Development Program (FSDP) explicitly targeting a reduction in cash usage and an increase in digital payments. The FSDP, one of the Vision 2030 realization programs, aims to create a diversified and effective financial sector that supports the development of the national economy. SAMA, as the central bank, has been at the forefront of this effort, rolling out initiatives such as the National Payments Strategy, the Saudi Payments Network (Mada), and regulatory frameworks for fintech companies. These measures have fostered a competitive and innovative payments landscape, encouraging both traditional banks and new entrants to offer user-friendly digital solutions.

The growth in electronic payments also reflects broader changes in Saudi society. With a young, tech-savvy population and near-universal smartphone penetration, the appetite for digital convenience is high. The government’s push for digital transformation across all sectors—from education to healthcare—has normalized the use of technology in daily life. Moreover, the COVID-19 pandemic acted as a catalyst, as consumers and merchants alike sought contactless options to ensure safety and continuity. Since then, the momentum has only grown. The 79% figure announced by SAMA is the culmination of these trends, but it also sets the stage for further advancements. As the Kingdom continues to invest in fintech, cybersecurity, and digital infrastructure, the share of electronic payments is expected to rise even further, bringing Saudi Arabia closer to its goal of a cashless society.

Key Details

What exactly do the latest SAMA figures reveal? According to the official press release, the total number of electronic non-cash payments transactions reached 12.6 billion in 2024, a substantial increase from 10.8 billion in 2023. This growth of approximately 16.7% year-on-year demonstrates the accelerating adoption of digital payment methods across the Kingdom. The 79% share of retail payments is particularly notable because it exceeds the interim target set by the FSDP, which aimed for 70% by 2025. Achieving this milestone a year early underscores the effectiveness of SAMA’s strategies and the financial sector’s responsiveness. The release also emphasized that SAMA will continue to expand payment options by advancing the national payment systems’ infrastructure and enhancing related solutions. This includes ongoing upgrades to the Saudi Payments Network (Mada), the introduction of new digital wallets, and the integration of emerging technologies such as blockchain and open banking APIs.

The data also highlights the diversity of payment channels contributing to this growth. Point-of-sale (POS) terminals, online gateways, and mobile applications are all seeing increased usage. Contactless payments, in particular, have surged, with consumers appreciating the speed and convenience of tapping to pay. The expansion of e-commerce has further fueled the trend, as online shopping requires digital payment methods. SAMA has also been proactive in ensuring the security and reliability of these systems, implementing robust cybersecurity measures and consumer protection regulations. The central bank’s collaboration with banks, payment service providers, and fintech firms has been instrumental in creating a seamless user experience. As a result, more merchants—from large retailers to small businesses—are now accepting digital payments, further entrenching the cashless habit. The 12.6 billion transactions represent not just volume but also the trust that consumers and businesses place in the system.

International and Regional Impact

How does Saudi Arabia’s progress in digital payments compare to global trends, and what does it mean for the region? The Kingdom’s achievement places it among the world’s leading economies in terms of digital payment adoption. According to global benchmarks, Saudi Arabia’s 79% share is comparable to advanced economies in Europe and North America, and it surpasses many emerging markets. This positions the Kingdom as a digital payments pioneer in the Middle East and North Africa (MENA) region, setting an example for neighboring countries. The success of SAMA’s initiatives could inspire similar programs across the Gulf Cooperation Council (GCC) and beyond, fostering regional integration and interoperability. For international businesses and investors, Saudi Arabia’s advanced payment infrastructure is a strong draw, as it facilitates seamless transactions and reduces the friction of doing business. The Kingdom’s commitment to digital innovation also enhances its attractiveness as a hub for technology companies and financial institutions looking to tap into the growing digital economy.

On a regional level, the shift toward electronic payments supports broader economic integration. The GCC has been working on cross-border payment linkages, and Saudi Arabia’s advanced systems can serve as a cornerstone for these efforts. For example, the Arab Monetary Fund’s Buna platform, which facilitates cross-border payments in Arab currencies, benefits from the participation of countries with robust digital infrastructures. Saudi Arabia’s experience can provide valuable insights for other nations seeking to modernize their payment systems. Moreover, the Kingdom’s progress contributes to the global trend of financial digitalization, which is seen as a key driver of economic growth and inclusion. By sharing its expertise and best practices, Saudi Arabia can play a leadership role in shaping the future of payments in the region and beyond. The international recognition of SAMA’s efforts further reinforces the Kingdom’s standing as a responsible and forward-looking global player.

Economic and Strategic Significance

Why does the surge in electronic payments matter for Saudi Arabia’s economy? The shift from cash to digital payments has profound implications for economic efficiency, transparency, and growth. Digital transactions are faster, cheaper, and more secure than cash, reducing the costs associated with handling physical currency. For businesses, this means lower administrative burdens and quicker access to funds, which can improve cash flow and investment capacity. For the government, digital payments enhance tax collection and reduce the shadow economy, as transactions are traceable. This supports fiscal sustainability and allows for more targeted economic policies. Furthermore, the data generated by digital payments provides valuable insights into consumer behavior and economic trends, enabling better decision-making by policymakers and businesses alike. The growth of the digital payments sector also stimulates innovation and competition, particularly among fintech startups, which can lead to new products and services that benefit consumers.

Strategically, the dominance of electronic payments aligns with Vision 2030’s goal of building a diversified and knowledge-based economy. A modern financial infrastructure is essential for attracting foreign investment and supporting the growth of non-oil sectors such as tourism, entertainment, and technology. For instance, the influx of international visitors for events like Expo 2030 and the FIFA World Cup 2034 will require seamless digital payment options. By providing a world-class payments ecosystem, Saudi Arabia enhances its competitiveness as a destination for business and leisure. Additionally, the shift reduces the reliance on cash, which can be a vector for illicit activities. SAMA’s efforts to promote digital payments thus contribute to the integrity and stability of the financial system. The central bank’s ongoing commitment to innovation ensures that the Kingdom remains at the forefront of financial technology, driving economic progress and improving the quality of life for citizens and residents.

Vision 2030 Alignment

How does the 79% milestone fit into the broader Vision 2030 narrative? The Financial Sector Development Program, a core component of Vision 2030, aims to create a diversified and effective financial sector that supports the development of the national economy. One of its key objectives is to increase the share of electronic payments to 70% by 2025, a target that has now been exceeded. This achievement is a clear indication that the Kingdom is on track to realize its ambitious transformation. Vision 2030 seeks to reduce dependence on oil, diversify revenue streams, and foster a vibrant society. A digital payments infrastructure underpins these goals by enabling e-commerce, facilitating remittances, and promoting financial inclusion. It also supports the growth of small and medium-sized enterprises (SMEs), which are vital for job creation and innovation. By making payments easier and more accessible, SAMA is helping to unlock the potential of all segments of society.

Looking ahead, SAMA’s continued efforts to expand payment options and promote digital payments will be crucial for sustaining this momentum. The central bank has outlined plans to further develop the national payment systems’ infrastructure, enhance cybersecurity, and foster collaboration with international partners. These initiatives will not only consolidate the gains made so far but also pave the way for next-generation payment solutions, such as instant payments and open banking. As Saudi Arabia marches toward a cashless future, it is setting a benchmark for other nations in the region and around the world. The 79% figure is more than a statistic; it is a symbol of the Kingdom’s determination to embrace the future and deliver on the promises of Vision 2030. With strong leadership and a clear strategic direction, Saudi Arabia is well-positioned to continue leading the charge in digital financial innovation, contributing to a prosperous and sustainable economy for generations to come.

20 Questions

Q1. What percentage of retail payments in Saudi Arabia were electronic in 2024?

A1. Electronic payments accounted for 79% of total retail payments in 2024, according to the Saudi Central Bank (SAMA). This is an increase from 70% in 2023, reflecting the rapid adoption of digital payment methods across the Kingdom.

Q2. How many non-cash transactions were processed in Saudi Arabia in 2024?

A2. SAMA reported that the number of electronic non-cash payments transactions reached 12.6 billion in 2024. This is a significant rise from 10.8 billion transactions in 2023, demonstrating growing consumer and business confidence in digital payments.

Q3. Which Saudi government program is driving the shift to electronic payments?

A3. The Financial Sector Development Program (FSDP), a key initiative under Saudi Vision 2030, is driving the shift. The FSDP aims to reduce reliance on cash and boost payment digitalization, with targets set for electronic payments as a share of total retail payments.

Q4. What is the Saudi Central Bank’s role in advancing digital payments?

A4. The Saudi Central Bank (SAMA) leads the national payments strategy, develops infrastructure, and collaborates with the financial sector. SAMA also regulates and promotes innovation in payment solutions to expand adoption and enhance security across the Kingdom.

Q5. How does the 79% figure compare to the FSDP target?

A5. The FSDP set a target of 70% electronic payments by 2025. The achievement of 79% in 2024 means the Kingdom has exceeded this interim goal a year early, showcasing the effectiveness of SAMA’s initiatives and the financial sector’s commitment.

Q6. What are the main electronic payment methods used in Saudi Arabia?

A6. Key methods include point-of-sale (POS) terminals, mobile wallets, contactless cards, and online banking. The Saudi Payments Network (Mada) is the national backbone, and fintech solutions are increasingly popular among consumers and merchants.

Q7. How does this progress align with Saudi Vision 2030?

A7. Vision 2030 seeks to diversify the economy and modernize society. A digital payments infrastructure supports e-commerce, financial inclusion, and non-oil growth. The 79% milestone reflects the Kingdom’s commitment to building a knowledge-based economy and improving quality of life.

Q8. What benefits do electronic payments bring to the Saudi economy?

A8. Electronic payments enhance efficiency, reduce costs, and increase transparency. They support tax collection, reduce the shadow economy, and provide data for better policy-making. They also stimulate fintech innovation and attract foreign investment to the Kingdom.

Q9. How does Saudi Arabia’s digital payment adoption compare regionally?

A9. Saudi Arabia is a regional leader in digital payments, with adoption rates comparable to advanced economies. Its success serves as a model for other GCC and MENA countries, fostering regional integration and interoperability in payment systems.

Q10. What initiatives has SAMA launched to promote digital payments?

A10. SAMA has launched the National Payments Strategy, upgraded the Mada network, and introduced regulatory frameworks for fintech. It also promotes open banking, instant payments, and cybersecurity measures to ensure a robust and secure payments ecosystem.

Q11. How has consumer behavior changed regarding cash usage in Saudi Arabia?

A11. Consumers have increasingly embraced digital payments for their convenience, speed, and security. The COVID-19 pandemic accelerated this shift, and today, more Saudis and residents prefer tapping or using mobile apps over carrying cash for daily transactions.

Q12. What role do fintech companies play in Saudi Arabia’s payment landscape?

A12. Fintech companies drive innovation by offering new payment solutions, such as digital wallets and peer-to-peer transfers. SAMA’s supportive regulatory environment, including sandbox programs, encourages fintech growth, enhancing competition and choice for consumers.

Q13. How does the growth in electronic payments affect small businesses in Saudi Arabia?

A13. Small businesses benefit from lower transaction costs, faster settlements, and access to a wider customer base through e-commerce. Digital payments enable them to operate more efficiently and compete in the modern economy, supporting job creation and innovation.

Q14. What measures are in place to ensure the security of electronic payments?

A14. SAMA enforces strict cybersecurity standards and consumer protection regulations. Banks and payment providers use encryption, tokenization, and multi-factor authentication. Regular audits and monitoring help safeguard the integrity of the payment systems.

Q15. How does the shift to electronic payments support financial inclusion?

A15. Digital payments make financial services accessible to underserved populations, including those in remote areas. Mobile wallets and simplified account opening processes allow more people to participate in the formal economy, reducing reliance on cash and enhancing economic empowerment.

Q16. What is the expected future trend for electronic payments in Saudi Arabia?

A16. The share of electronic payments is expected to continue rising, driven by ongoing investments in technology, supportive regulations, and changing consumer preferences. SAMA aims to further expand payment options and infrastructure to achieve a near-cashless society.

Q17. How does Saudi Arabia’s digital payment progress attract foreign investment?

A17. A modern, efficient payment system reduces operational friction for international businesses. Investors view robust digital infrastructure as a sign of economic maturity, making the Kingdom more attractive for foreign direct investment and partnerships in technology and finance.

Q18. What are the environmental benefits of moving away from cash?

A18. Reducing cash usage lowers the environmental footprint associated with printing, transporting, and handling physical currency. Digital payments also decrease the need for paper receipts and bank branches, contributing to sustainability goals aligned with Vision 2030.

Q19. How does SAMA collaborate with international counterparts on payment systems?

A19. SAMA engages with global institutions like the Bank for International Settlements and participates in cross-border payment initiatives. It shares best practices and adopts international standards to ensure interoperability and security of payment systems.

Q20. What does the 79% milestone mean for the future of Saudi Arabia’s economy?

A20. It signifies a major leap toward a digital economy, enhancing efficiency, transparency, and growth. This milestone supports Vision 2030’s goals of diversification and modernization, positioning Saudi Arabia as a global leader in financial innovation and economic transformation.

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