Saudi Arabia Digital Payments Market Overview

Market Size in 2024: USD 1.16 Billion

Market Size in 2033: USD 3.86 Billion

Market Growth Rate 2025-2033: 14.34%

According to IMARC Group's latest research publication, "Saudi Arabia Digital Payments Market Size, Share, Trends and Forecast by Component, Payment Mode, Deployment Mode, End Use Industry and Region, 2025-2033", The Saudi Arabia digital payments market size reached USD 1.16 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 3.86 Billion by 2033, exhibiting a growth rate (CAGR) of 14.34% during 2025-2033.

Growth Factors in the Saudi Arabia Digital Payments Market

• Vision 2030 and Government Initiatives

Saudi Arabia’s Vision 2030 is turbocharging the digital payments industry by pushing for a cashless economy. The Saudi Central Bank (SAMA) has been a key player, with its Financial Sector Development Program (FSDP) driving 79% of retail transactions to electronic payments, totaling 12.6 billion transactions. SAMA’s initiatives, like the mada payment system, support NFC-based contactless payments, with millions of POS terminals now connected nationwide. The government’s USD 131.9 billion digital economy, 15% of GDP, fuels infrastructure investments. Policies like tax incentives for fintech startups and streamlined licensing are attracting companies like Moyasar, which launched the advanced MPG payment gateway. This strategic push is making digital payments seamless, boosting adoption across urban and rural areas.

• Surge in Mobile Shopping and E-Commerce

With two-thirds of retail purchases made via smartphones—the highest globally—Saudi Arabia’s digital payments market is booming, driven by mobile shopping and e-commerce. The 98% smartphone penetration rate enables platforms like Noon and Amazon.sa to process millions of transactions daily. Card payments hit USD 152.3 billion, with contactless payments via mada and Apple Pay leading the charge. However, a PYMNTS report notes high checkout friction, with nearly all shoppers facing issues like transaction failures. Companies like STC Pay and Jahez are investing in smoother payment interfaces to tackle this. The government’s Digital Economy Policy supports e-commerce growth, ensuring robust payment systems. This mobile-first culture is driving digital payment adoption, especially among younger Saudis.

• Fintech Innovation and Private Investment

The fintech sector is a major driver of digital payments, with over 200 licensed fintechs operating in Saudi Arabia. The prepaid card and digital wallet market reached USD 9.65 billion, fueled by players like STC Pay, Al Rajhi Bank, and PayTabs. SAMA’s regulatory sandbox encourages innovation, allowing startups like Moyasar to launch solutions like the MPG gateway, tailored for merchants. Private investments, backed by the Public Investment Fund (PIF), are pouring into fintech, with companies like Ejari generating over USD 50 million in service demand. Open banking initiatives are also fostering collaboration between banks and fintechs, enhancing payment efficiency. This vibrant ecosystem, supported by regulatory flexibility and investor confidence, is accelerating digital payment adoption across the Kingdom.

Key Trends in the Saudi Arabia Digital Payments Market

• Rise of Contactless and NFC Payments

Contactless payments are reshaping Saudi Arabia’s digital payments landscape, driven by mada’s NFC-enabled POS systems and global platforms like Apple Pay. With 79% of retail transactions now electronic, contactless payments dominate, especially in public transport and retail. Over 2.9 billion card swipes occur annually at POS terminals, reflecting widespread adoption. Companies like Visa and Mastercard are partnering with local banks to expand NFC infrastructure, while SAMA’s regulations mandate contactless-enabled terminals nationwide. This trend, highlighted by posts on X, is reducing cash reliance and speeding up transactions. As urban centers like Riyadh embrace contactless tech, consumers enjoy faster, safer checkouts, aligning with Vision 2030’s cashless goals and boosting merchant efficiency.

• Growth of Instant Payment Systems

Real-time payments are gaining traction in Saudi Arabia, driven by demand for instant fund transfers. SAMA’s new e-commerce payments interface integrates mada with global networks, processing millions of transactions instantly. The Riyad Bank PMI notes strong non-oil sector demand, with digital transactions accounting for 70% of retail payments. Platforms like STC Pay and Alinma Bank are rolling out instant payment solutions for P2P and B2B transfers, handling thousands of transactions daily. This trend, supported by SAMA’s infrastructure upgrades, enhances financial inclusion, especially in rural areas. Posts on X highlight excitement over faster checkouts, reflecting consumer demand for speed and convenience. Instant payments are set to redefine Saudi Arabia’s payment ecosystem, driving efficiency and trust.

• Integration of AI and Blockchain

AI and blockchain are transforming Saudi Arabia’s digital payments by enhancing security and efficiency. Fintechs like Tamam Financing use AI-driven compliance checks to process transactions, while blockchain-based smart contracts ensure transparency. The loan aggregator market, valued at USD 43.65 million, leverages these technologies for seamless payments. Companies like Moyasar are integrating AI to reduce checkout friction, addressing issues like transaction failures noted in PYMNTS reports. SAMA’s regulatory support encourages blockchain adoption, with pilot projects testing decentralized payment systems. This trend, buzzing on X, aligns with Vision 2030’s digital transformation goals, offering faster, more secure transactions. As fintechs innovate, AI and blockchain will drive consumer trust and streamline payments, positioning Saudi Arabia as a fintech leader.

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Saudi Arabia Digital Payments Industry Segmentation:

The report has segmented the market into the following categories:

Component Insights:

• Solutions
  • Application Program Interface
  • Payment Gateway
  • Payment Processing
  • Payment Security and Fraud Management
  • Transaction Risk Management 
  • Others
• Services
  • Professional Services
  • Managed Services

Payment Mode Insights:

• Bank Cards
• Digital Currencies
• Digital Wallets
• Net Banking
• Others

Deployment Type Insights:

• Could-based
• On-premises

End Use Industry Insights:

• BFSI
• Healthcare
• IT and telecom
• Media and Entertainment
• Retail and E-commerce
• Transportation
• Others

Regional Analysis:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Future Outlook

Saudi Arabia’s digital payments market is set to thrive, fueled by Vision 2030’s push for a cashless economy. With 79% of retail transactions already electronic and a USD 131.9 billion digital economy, the Kingdom is a regional fintech hub. SAMA’s initiatives, like the mada-integrated e-commerce platform, will drive seamless transactions, while the USD 9.65 billion prepaid card and digital wallet market grows with players like STC Pay. AI and blockchain will enhance security and efficiency, reducing checkout friction. The 98% smartphone penetration and booming e-commerce, with USD 152.3 billion in card payments, signal strong consumer adoption. As fintechs expand and infrastructure improves, Saudi Arabia will lead in digital payment innovation, supporting economic diversification and financial inclusion across urban and rural regions.

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

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