RIYADH: Saudi Arabia is getting closer to its goal of becoming a Cashless society as the country recorded 98% in-person contactless transactions, a rise from 4% recorded in 2017, as stated by Visa’s regional president Andrew Torre. Government support, consumer demand and visa initiatives have all contributed to this rapid growth, aligning with Saudi Arabia’s Vision 2030’s objectives to enhance digital commerce and innovation.
Visa which has been in the country for 40 years, has set up an innovation centre and office at King Abdullah Financial District in Riyadh. Visa’s fourth global centre, the facility will drive digital payment solutions through AI, biometrics and the Internet of Things, partnering with local banks, fintechs and government entities. KAFD’s chief commercial officer, Sultan Al-Obaida highlighted that Saudi Arabia has a strong growth in the banking sector which uplifts Riyadh’s status as a global financial hub.
Saudi Central Bank (SAMA) which has influenced Saudi Arabia to be a fintech-friendly environment has also contributed to this digital transition. The adoption of fintech sandbox by SAMA has enabled new players to innovate, especially in embedded finance and cross-border remittances.
The growth of E-commerce in the country reached an annual rate of 30% due to the growing influence of online shopping and the pandemic’s impact. Small businesses have been empowered by adopting digital payment which provides secure and efficient transactions. Torre believes this trend to grow more as AI is improving cashless payments and reducing use of cash.
Visa’s efforts in Saudi Arabia show the effect of private public collaboration on improving digital payments, which also falls in line with Saudi Arabia’s aim of becoming a cashless society.
