Remarkable Success of Mobile and Contactless Payments Through Near Field Communication “NFC” Technology Boosting the Aim of a Less Dependent on Cash Society Within the Kingdom of Saudi Arabia
As Saudi Arabia’s national payments infrastructure operator, Saudi Payments has the task of driving the Kingdom’s digital transformation towards a less dependent on cash society. Its aim, under the Kingdom’s Vision 2030 roadmap, is to ensure 70% of all transactions in the country are digital by 2030, and its secret weapon towards achieving this, is through digital and mobile payments (utilizing Near Field Communication “NFC” technology within physical cards and mobile devices).
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201110005684/en/
NFC and Mobile Payments in Saudi Arabia (Photo: AETOSWire)
Introduced only four years ago, mobile and NFC payments have rapidly become the payment of choice for a largely young, youth and tech savvy Saudi and non-Saudi citizens within the society. The rate of growth has been phenomenal, increasing from 97 million transactions in September 2019, to over 266 million contactless transactions with a value of SAR 27.5 billion. That represents 174% increase comparing to same period in 2019.
The Saudi population is young, in a nation of 35 million people, two thirds are under the age of 35. The Kingdom is also one of the highest users of mobile phones in the world, with over 28 million registered smartphones. The Millennials and Gen Z have grown up in a digital age where they expect to have technology to their fingertips to make payments. “Cash is fast” terminology is becoming a phase of the past.
There are currently over 22 million NFC mada cards in circulation in the Kingdom. In the third quarter of 2020, mobile payments represented 24% of all POS payments, an increase of 567% compared with 2019.
Saudi Payments Managing Director Fahad Al-Akeel said: “The growth in digital and mobile payments has outstripped expectation, Saudi Payments strategy is to enrich the Kingdom’s digital and mobile payment environment and make it more competitive. Our aim is to support the National Digital Transformation under Vision 2030 by enabling the Kingdom of Saudi Arabia to become essentially a less dependent on cash society during the next ten years, if not even achieved beforehand.
However, the speed with which the technology has been adopted has surpassed all expectation. In September 2020 91% of transactions were contactless, compared with 66% in 2019. There are also now over 614K POS terminals across the country, 96% of which are NFC enabled.”
Fahad Al-Akeel acknowledges and emphasizes that COVID-19 has had a positive impact on speeding up the transition, “The huge growth this year in digital and mobile payments could be attributed to COVID-19 and cardholders increasingly turning to online shopping and preferring to use cards and mobile at point of sales “POS” instead of cash. The result has meant we have exceeded all forecasts, with 25% mobile Payments Volume share vs overall POS Volume as of September 2020, compared to 8% in September 2019, an overall increase of 495%.
Saudi Payments developed its universal mobile payments infrastructure in 2018, in connection with all card issuers in the Kingdom, which rapidly lead to the introduction of NFC based payment solutions such as mada Pay and Apple Pay. The overwhelming success of the infrastructure means further OEM and international Pays are anticipated to come on line in the near future.
More recent developments have included an NFC limit/CDCVM/CVM/ PIN free which is applicable on physical NFC mada cards. The single transaction limit on physical cards and mada pay was increased in March 2020 from SAR 100 to SAR 300, in order to minimize the chance of COVID-19 infection and increase the share of contactless payments by simply tapping the card or mobile device without the need of a PIN entry at the POS terminal.
These multiple steps have collectively made NFC a cultural phenomenon which could easily see the Kingdom achieve its Vision 2030 goal of creating a cashless society well before 2030.
Saudi Payments is a fully owned subsidiary of the Saudi Arabian Monetary Authority (SAMA)
About Saudi Payments
Saudi Payments was established in 1991 to operate and develop all major national payment systems.
Since its establishment, it has played a vital role in enabling the public and private sectors to connect with domestic and international payment services, helping to develop the Kingdom’s payment infrastructure.
Saudi Payments provides fast, flexible, and safe electronic payment services at low cost, through mada, SADAD and Esal systems, enhancing the national electronic payment infrastructure and reducing cash transactions.
Saudi Payments supports the government’s Financial Sector Development Program, a part of the Kingdom's Vision 2030 Program. Saudi Payments operates to international standards, connecting local and international service providers with payment networks, reducing the need for cash payments.
To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.
External Communication Manager
About Business Wire
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
Logitech Delivers Strong Start to Fiscal Year 202227.7.2021 03:00:00 CEST | Press release
SIX Swiss Exchange Ad hoc announcement pursuant to Art. 53 LR — Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the first quarter of Fiscal Year 2022. Q1 sales were $1.31 billion, up 66 percent in US dollars and 58 percent in constant currency, compared to Q1 of the prior year. Q1 GAAP operating income grew 143 percent to $203 million, compared to $83 million in the same quarter a year ago. Q1 GAAP earnings per share (EPS) grew 160 percent to $1.09, compared to $0.42 in the same quarter a year ago. Q1 non-GAAP operating income grew 100 percent to $235 million, compared to $117 million in the same quarter a year ago. Q1 non-GAAP EPS grew 91 percent to $1.22, compared to $0.64 in the same quarter a year ago. “We’ve started strong in Fiscal Year 2022, with Q1 sales up 58% in constant currency and profits doubling versus last year,” said Bracken Darrell, Logitech president and chief executive officer. “Our key categories grew high double digits. This
Adagio Therapeutics Partners with Biocon Biologics to Bring Potent and Broadly Neutralizing COVID-19 Antibody Treatment to Patients in India and Select Emerging Markets26.7.2021 22:05:00 CEST | Press release
Adagio Therapeutics, Inc., a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of antibody-based solutions for infectious diseases with pandemic potential, today announced a partnership agreement with Biocon Biologics Ltd., to combat the ongoing COVID-19 crisis in southern Asia. Biocon Biologics Ltd. is a fully integrated biosimilars company and a subsidiary of Biocon Ltd., a global biopharmaceuticals company, (BSE code: 532523, NSE: BIOCON). Under the terms of the agreement, Adagio will provide Biocon with materials and know-how to manufacture and commercialize an antibody treatment based on ADG20 in India and additional select emerging markets. ADG20, Adagio’s lead product candidate, is designed to be a potent, long-acting and broadly neutralizing antibody for both the treatment and prevention of COVID-19 as either a single or combination agent. Unlike other antibody-based therapies specifically targeting SARS-CoV-2, ADG20 has demons
SpeeDx Launch Solution for SARS-CoV-2 Variant Analysis26.7.2021 18:40:00 CEST | Press release
SpeeDx Pty. Ltd., a developer of innovative molecular diagnostic solutions, have launched a new product line of research reagents to support reflex variant analysis for circulating SARS-CoV-2 variants of concern (VOC). The rapid development of PlexPrime® SARS-CoV-2 Genotyping* tests will support investigations and monitoring of the range of emerging and circulating SARS-CoV-2 VOC that have been linked to increased transmissibility, reduced vaccine efficacy, or other characteristics that may require specific public health actions.1 This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210726005313/en/ SpeeDx unique technology excels in mutation detection applications and can readily be applied to variants reported in the SARS-CoV-2 sequence databases. Compatible with standard qPCR instrumentation, the PlexPrime® SARS-CoV-2 Genotyping research reagents can reduce the manual process of preparing positive samples for sequence analysis
V-Square Appoints Erik Norland as Head of Distribution26.7.2021 17:00:00 CEST | Press release
V-Square Quantitative Management (V-Square) has announced the hiring of Erik Norland as its Head of Distribution. A 20-year industry veteran with asset management, custody, and global markets expertise, Erik’s addition to the team bolsters our strong client-centric approach to deliver customized ESG solutions as we continue to build our reputation as a specialized global asset manager. He will lead the firm's sales, consultant relationship and client service functions across institutional, insurance and wholesale. Mr. Norland, based in Stockholm, will report to Mamadou-Abou Sarr, co-founder and President and will join the global leadership team. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210726005571/en/ Erik Norland, Head of Distribution (Photo: Business Wire) "Erik is a results-focused leader who brings excellent experience in distribution strategy and execution, sales management and client relationship roles. I had th
Private and Public Sector Join Forces Under the Umbrella of the kENUP Foundation: BioNTech Announces Project to Develop the First mRNA-Based Prophylactic Malaria vaccine, and the set-up of Manufacturing Infrastructures in Africa26.7.2021 16:10:00 CEST | Press release
Today, BioNTech SE (“BioNTech”) announced the start of its Malaria project which aims at the development of a safe and highly effective malaria vaccine and the implementation of sustainable vaccine supply solutions on the African continent. The company’s project is part of a programme by the kENUP Foundation to accelerating the eradication of Malaria. This goal was out of reach so far, despite enormous financial and public health efforts of the global community. The scientific and entrepreneurial progress made during the COVID-19 pandemic raise hopes that a highly efficacious vaccine could soon help to eradicate Malaria. BioNTech aims to develop a safe and highly effective mRNA vaccine with durable protective immunity for prevention of malaria and disease associated mortality. To this end, BioNTech will assess multiple vaccine candidates featuring known Malaria targets such as the circumsporozoite protein (CSP), as well as new antigens discovered in the pre-clinical research phase. The
PPG to Expand Production Capacity for PPG ISENSE Gloss Beverage Can Coatings at Delaware, Ohio, Plant26.7.2021 15:02:00 CEST | Press release
PPG (NYSE:PPG) today announced that it is currently adding capacity for the production of overvarnish coatings for beverage can exteriors, including PPG ISENSE™ Gloss coatings, at its Delaware, Ohio, plant. PPG expects the addition of the Delaware plant’s new volume to existing overvarnish capacity at its Oak Creek, Wisconsin, packaging coatings facility will increase the company’s overall production of overvarnish coatings in the U.S. by 40%. “Beverage can manufacturers around the world are facing unprecedented demand for their products,” said Todd White, PPG general manager, U.S. and Canada, and global strategic accounts, packaging coatings. “With this added capacity, we are committed to helping them meet that demand while adding more security to their supply chain for beverage can coatings.” In addition to increasing supply chain security for its customers and the packaging industry, the Delaware plant will provide in-line analytical capabilities for enhanced batch consistency. “PPG
NET ZERO Leaders Summit (Japan Business Conference 2021) - Online Event From Wednesday, July 28 : Latest Information26.7.2021 15:00:00 CEST | Press release
Japan’s Ministry of Economy, Trade and Industry (METI) and the Japan External Trade Organization (JETRO) are pleased to announce the jointly organized “NET ZERO Leaders Summit (Japan Business Conference 2021)” to accelerate innovation in green investment and the realization of carbon neutrality. The event will take place from Wednesday, July 28, and will be held online. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210726005389/en/ Entrance_Lobby_Image (Graphic: Business Wire) Main Program In the main program, panel discussions will be held between 15 leaders of global companies and organizations. In addition, Mr. SASAKI Nobuhiko, Chairman and CEO of the Japan External Trade Organization (JETRO), will present the opening remarks, Mr. TOKURA Masakazu, Chairman of KEIDANREN (Japan Business Federation), will present the keynote speech and Prime Minister SUGA Yoshihide and Minister of Economy, Trade and Industry KAJIYAMA Hirosh
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.Visit our pressroom