Remarkable Success of Mobile and Contactless Payments Through Near Field Communication “NFC” Technology Boosting the Aim of a Less Dependent on Cash Society Within the Kingdom of Saudi Arabia
10.11.2020 15:51:00 EET | Business Wire | Press release
As Saudi Arabia’s national payments infrastructure operator, Saudi Payments has the task of driving the Kingdom’s digital transformation towards a less dependent on cash society. Its aim, under the Kingdom’s Vision 2030 roadmap, is to ensure 70% of all transactions in the country are digital by 2030, and its secret weapon towards achieving this, is through digital and mobile payments (utilizing Near Field Communication “NFC” technology within physical cards and mobile devices).
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201110005684/en/
NFC and Mobile Payments in Saudi Arabia (Photo: AETOSWire)
Introduced only four years ago, mobile and NFC payments have rapidly become the payment of choice for a largely young, youth and tech savvy Saudi and non-Saudi citizens within the society. The rate of growth has been phenomenal, increasing from 97 million transactions in September 2019, to over 266 million contactless transactions with a value of SAR 27.5 billion. That represents 174% increase comparing to same period in 2019.
The Saudi population is young, in a nation of 35 million people, two thirds are under the age of 35. The Kingdom is also one of the highest users of mobile phones in the world, with over 28 million registered smartphones. The Millennials and Gen Z have grown up in a digital age where they expect to have technology to their fingertips to make payments. “Cash is fast” terminology is becoming a phase of the past.
There are currently over 22 million NFC mada cards in circulation in the Kingdom. In the third quarter of 2020, mobile payments represented 24% of all POS payments, an increase of 567% compared with 2019.
Saudi Payments Managing Director Fahad Al-Akeel said: “The growth in digital and mobile payments has outstripped expectation, Saudi Payments strategy is to enrich the Kingdom’s digital and mobile payment environment and make it more competitive. Our aim is to support the National Digital Transformation under Vision 2030 by enabling the Kingdom of Saudi Arabia to become essentially a less dependent on cash society during the next ten years, if not even achieved beforehand.
However, the speed with which the technology has been adopted has surpassed all expectation. In September 2020 91% of transactions were contactless, compared with 66% in 2019. There are also now over 614K POS terminals across the country, 96% of which are NFC enabled.”
Fahad Al-Akeel acknowledges and emphasizes that COVID-19 has had a positive impact on speeding up the transition, “The huge growth this year in digital and mobile payments could be attributed to COVID-19 and cardholders increasingly turning to online shopping and preferring to use cards and mobile at point of sales “POS” instead of cash. The result has meant we have exceeded all forecasts, with 25% mobile Payments Volume share vs overall POS Volume as of September 2020, compared to 8% in September 2019, an overall increase of 495%.
Saudi Payments developed its universal mobile payments infrastructure in 2018, in connection with all card issuers in the Kingdom, which rapidly lead to the introduction of NFC based payment solutions such as mada Pay and Apple Pay. The overwhelming success of the infrastructure means further OEM and international Pays are anticipated to come on line in the near future.
More recent developments have included an NFC limit/CDCVM/CVM/ PIN free which is applicable on physical NFC mada cards. The single transaction limit on physical cards and mada pay was increased in March 2020 from SAR 100 to SAR 300, in order to minimize the chance of COVID-19 infection and increase the share of contactless payments by simply tapping the card or mobile device without the need of a PIN entry at the POS terminal.
These multiple steps have collectively made NFC a cultural phenomenon which could easily see the Kingdom achieve its Vision 2030 goal of creating a cashless society well before 2030.
Saudi Payments is a fully owned subsidiary of the Saudi Arabian Monetary Authority (SAMA)
About Saudi Payments
Saudi Payments was established in 1991 to operate and develop all major national payment systems.
Since its establishment, it has played a vital role in enabling the public and private sectors to connect with domestic and international payment services, helping to develop the Kingdom’s payment infrastructure.
Saudi Payments provides fast, flexible, and safe electronic payment services at low cost, through mada, SADAD and Esal systems, enhancing the national electronic payment infrastructure and reducing cash transactions.
Saudi Payments supports the government’s Financial Sector Development Program, a part of the Kingdom's Vision 2030 Program. Saudi Payments operates to international standards, connecting local and international service providers with payment networks, reducing the need for cash payments.
*Source: AETOSWire
To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.
View source version on businesswire.com: https://www.businesswire.com/news/home/20201110005684/en/
Contact information
Showmer Alshowmer
External Communication Manager
SAUDI PAYMENTS
E
Saalshowmer@saudipayments.com
T +966-11-8292000-2045
About Business Wire
For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
Azafaros Completes Enrollment of Phase 3 (NAVIGATE) Study Evaluating Nizubaglustat for the Treatment of Patients with GM1/GM2 Gangliosidoses23.7.2026 14:00:00 EEST | Press release
Azafaros, a private company building a portfolio of disease-modifying therapeuticsto become a leader in lysosomal storage disorders (LSDs) focused on addressing neurological symptoms, today announced the completion of patient recruitment in its Phase 3 study evaluating nizubaglustat for the treatment of GM1/GM2 gangliosidoses. “Completing enrollment in our Phase 3 GM1/GM2 study is a significant step toward potentially bringing nizubaglustat to patients and families living with these devastating neurodegenerative diseases," said Stefano Portolano, Chief Executive Officer at Azafaros. "We are deeply grateful to the patients, caregivers, investigators and advocacy groups who have made this milestone possible. As we advance the GM1/GM2 study toward data readout and regulatory submission, we continue to enroll in our Phase 3 NPC study and remain focused on our goal of addressing the significant unmet medical needs faced by these rare disease communities." Professor Roberto Giugliani, Princi
Francisco Partners Closes $21 Billion Across Flagship and Agility Funds23.7.2026 14:00:00 EEST | Press release
Francisco Partners (“FP”), a leading global investment firm that specializes in partnering with technology companies, today announced the closing of $21 billion in capital commitments across its Francisco Partners VIII, L.P. flagship fund and Francisco Partners Agility IV, L.P., its middle-market fund. FP exceeded its initial targets of $14.0 billion and $3.5 billion, respectively. This milestone builds on Francisco Partners' longstanding track record of performance, underscored by its distinction as the only firm to rank among the top three performers in each of the past six HEC-Dow Jones Large Buyout Performance Rankings.* “In our business, long-term success is created through a series of relationships built on years of trust and collaboration," said Dipanjan (“DJ”) Deb, Co-Founder and CEO of Francisco Partners. "We want to thank our investors for their support, our management teams for their dedication and performance, our friends and partners throughout the technology ecosystem, ou
Taiwanese ensembles showcase erhu and ocarina at Prague Folklore Days23.7.2026 11:21:00 EEST | Press release
The Prague Folklore Days 2026 was held on July 17 and 18 in the heart of Prague, bringing together 56 international arts groups from Germany, Austria, Slovakia, Spain, the Netherlands, and Poland. Four Taiwanese groups took part: Hildebrand Yu’s ocarina band, the Shi-xian Huqin Orchestra, the Taipei Folk Orchestra, and the Four Strings Ensemble. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260722841530/en/ Taiwanese ensembles showcase erhu and ocarina at Prague Folklore Days Led by Huang Chun-sin, the official Taiwan representative band featured a diverse lineup of ocarina, erhu, and dance performers. Their program stood out among the European groups with its distinctive character and vivid stage presence. Hildebrand Yu’s ocarina band captivated audiences with warm, uplifting melodies accompanied by the ocarina and ukulele. Yu also performed “Twilight Waltz,” delivering a heartfelt piece of poetic expression, like sunlight
Taiwan Children’s Choirs Garner Major Awards at Hungarian Choral Competition23.7.2026 10:33:00 EEST | Press release
Competing against 36 leading contenders from 20 countries, four Taiwanese children’s choirs have garnered several major awards and top honors at the 5th Budapest International Choral Celebration, showcasing Taiwan’s cultural diversity and music excellence. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260722613876/en/ Puzangalan Children’s Choir and Yo Wu Wei Children’s Chorus join forces with international choral ensembles and orchestras to perform Mozart’s Requiem Mass in D minor, K. 626 at the Béla Bartók National Concert Hall of Müpa Budapest. With its pure, angelic voices and exceptional vocal techniques, Puzangalan Children’s Choir from Pingtung County won the top prize, Laurea Summa Cum Laude, in the Grand Prix Competition’s Youth Choir of Equal Voices, Folklore, and Sacred Music categories. In the Open Competition, Yo Wu Wei Children’s Chorus claimed three gold prizes in the categories of Youth Choir of Equal Voices
Evotec Selects Navan to Unify Global Travel, Payments, and Expense Management23.7.2026 10:00:00 EEST | Press release
Navan (NASDAQ: NAVN), the global AI-powered business travel and expense platform, today announced that Evotec (NASDAQ: EVO; Frankfurt Prime Standard: EVT), the global drug discovery and development company, has selected Navan to manage its complete corporate Travel and Expense (T&E) program in its top global markets. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260722261092/en/ Global drug discovery leader partners with Navan to drive operational excellence and eliminate manual expense reporting A life science company that is pioneering the future of drug discovery and development, Evotec had historically managed T&E independently across different countries, meaning employees were dealing with a patchwork of different tools and manual offline processes. As part of its focus on operational excellence, Evotec is further streamlining these processes through one unified, easy-to-use platform that supports consistency, transpar
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.
Visit our pressroom