A recent report issued by the Saudi Central Bank (SAMA), which included an extensive study on the payment methods utilised in the Kingdom of Saudi Arabia during 2021, the use of electronic payments exceeded the use of cash.
The report was part of the key objective of the Financial Sector Development Program, to promote the use of digital payment solutions transforming the Kingdom into a less-cash society by reaching 70 percent non-cash payments by 2025.
The study showed that, across all user groups, the use of electronic payments exceeded the use of cash. In total, across all areas of economic activities, the use of electronic payments increased from 44 percent in 2019 to 62 percent of all payments by volume in 2021. These transactions represent 94 percent of all payments when measured by value.
The study indicated that for the first time in KSA, cash is no longer the most used method of payment by individuals. Electronic payments of individuals have grown significantly to reach 57 percent in 2021 of the total number of transactions executed, compared to just 36 percent in 2019.
On the business front, the share of electronic payments reached a substantial 84 percent of all business payments in 2021, compared to 51 percent in 2019 (a growth of 65 percent over the two years.
In addition the study also revealed that the government sector has almost completely converted to electronic payment methods of all outward government payments to individuals, business establishments or other government agencies.
The Saudi Central Bank, through its main role in the financial sector development program, seeks to encourage use of the fastest and most efficient electronic payment methods, as an extension of SAMA efforts in the development of the national and international payments ecosystems, including new technical and operational infrastructure, regulatory and legislative adjustments and new payment services.
