Through the expansion, Thunes set up an office in the Kingdom of Saudi Arabia and appointed a new country head.
Thunes is a business-to-business (B2B) company that powers payments for global businesses – from gig economy giants such as Uber and Deliveroo and Southeast Asia’s super app Grab to global fintechs such as PayPal and Remitly. Thunes said in a statement that it is also in advanced stages to sign partnerships with local Money Transfer Operators, e-wallets service providers, and banks.
According to the officials, bringing Thune’s payments network and technology capabilities into MENA’s market will help accelerate growth for digital wallets, banks, money transfer operators, and super apps.
Furthermore, this expansion aligns with Thunes’ commitment to the Kingdom of Saudi Arabia, Gulf Cooperation Council (GCC), and broader region. Thune’ focus falls on increasing access to financial and payments services to more people around the world.
In February 2022, Checkout.com – a global payment solutions provider – released a new report tracking Saudi Arabia’s ecommerce boom as financial inclusion, innovation, and economic development remain cornerstones of the Saudi Vision 2030.
The report suggests that Saudi Arabia’s forward-looking regulatory framework for the fintech industry is opening the Kingdom up to international business. It explains why 45% of Saudi consumers now believe the most important pillar to underpin Vision 2030 is further digitisation of the Saudi economy, along with greater access to digital skills and education.
Saudi Arabia’s digital payments market is evolving fast to keep pace with the Kingdom’s ‘Vision 2030’, which aims to increase the number of cashless transactions to 70% in 2025.
Thunes, therefore, is looking to be part of Vision 2030 and will work with local partners, helping them achieve a great customer experience by enabling instant borderless payments across the globe for their retail and business customers.
MENA economic activity is gaining momentum and bucking the global trend of sluggish growth. Saudi Arabia’s economy grew 9.9% in the first quarter, the fastest pace in a decade, driven by higher oil prices and business-friendly reforms.
Saudi Arabia continues to undertake a rapid transformation towards a digital economy in an accelerated time period. It is a booming economy with a developing digital infrastructure and evolving fintech scene.
The Saudi population that understands how to utilise digital payment solutions will be the prominent driver towards a cashless economy. Around 70% of the Kingdom’s population is under the age of 30 with high smartphone penetration at 93.3%. The demand for contactless payment cards or digital wallets is driven primarily by high smartphone penetration and technologically savvy millennial populations with a high desire to try new solutions.
On top of that, online shopping is growing at four times the speed of traditional retail in Saudi, and improvements in the online payments landscape are bound to drive Saudi’s cashless economy transformation forward.
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