GlobalData analyses Saudi Arabia's card payments market

Specifically, the Saudi Arabia card payments market is projected to expand by 7.6% USD 146.8 billion in 2024, as stated by GlobalData. Factors contributing to this growth include the increasing inclination of consumers towards electronic payments, a surge in contactless payments, and governmental initiatives aiming to promote a cashless society. 

GlobalData's Payment Cards Analytics data indicates growth in card payment value in Saudi Arabia by 17.8% in 2022 and 9.7% in 2023, reaching USD 136.4 billion, primarily fueled by heightened consumer spending. Officials from GlobalData cited by Yahoo highlighted the decline in cash usage in favour of electronic payments, supported by a robust digital payment infrastructure and the government's encouragement of merchants to adopt electronic payment options.

What about cash usage? 

While cash remains prevalent for lower-value transactions, there is a noticeable decrease in its usage, with electronic payment methods gaining traction. The government aims to reduce cash dependency, promote electronic payments, and foster payment innovation, aligned with the Vision 2030 plan targeting a 70% share of electronic transactions by 2025. 

The COVID-19 pandemic has further accelerated the shift towards contactless payments in Saudi Arabia, with a notable increase in contactless card transactions reported by the Saudi Arabian central bank. Debit cards hold dominance in the card payment space, accounting for 85% of the total card payment value in 2023, attributed to governmental financial inclusion initiatives and consumer preference for debt-free payments. 

Yahoo further reports that credit and charge cards face limited popularity in Saudi Arabia, primarily due to religious considerations regarding debt aversion. GlobalData officials further underscored the gradual transition of Saudi consumers towards electronic payments, supported by governmental initiatives, improved payment infrastructure, increased consumer awareness, and the adoption of contactless technology.