Saudi Arabia’s financial landscape is undergoing a rapid transformation as consumers increasingly move away from cash towards digital payment methods. A new report from Visa highlights a significant acceleration in this trend, revealing that the majority of consumers in the Kingdom now prefer the speed, security, and convenience offered by cards and mobile devices.
The Kingdom’s Evolving Payment Habits
According to the third edition of Visa’s “Where Cash Hides” report, 67% of consumers in Saudi Arabia are now classified as largely non-cash users. This figure marks a notable 4% increase from the previous year, underscoring a consistent and growing preference for digital transactions.
While nearly a quarter of consumers still use cash for some everyday purchases, its use is declining in key sectors. The report notes a significant drop in cash payments for dining out (-9%) and bill payments (-8%) as digital alternatives become more accessible and integrated into daily life.
Cash Persists in Peer-to-Peer Transactions
Despite the strong digital shift, cash maintains a foothold in specific peer-to-peer (P2P) and informal payment scenarios. The report indicates that cash is still the preferred method for tips (39%), P2P services (28%), and rent payments (14%), areas where formal digital infrastructure is still developing.
A Collaborative Push Towards Vision 2030
The move towards a digital-first economy is a collaborative effort, aligning with the Kingdom’s strategic goals under Vision 2030.
“The data shows a steady move toward digital payments in Saudi Arabia. Such progress is possible only because banks, fintechs, merchants and technology partners are pushing together in the same direction,” said Ali Bailoun, Visa’s Senior Vice President and Group Country Manager for Saudi Arabia, Bahrain, and Oman.
Bailoun added, “As more people try mobile and card payments in their daily lives, their expectations evolve. Consumers want payment options that are quick, convenient, and safe. When digital solutions meet these expectations, they naturally become the preferred choice.”
The Drivers Behind Digital Adoption
The primary drivers for this consumer shift are the inherent benefits of digital payments. Cards offer enhanced security by reducing the risks associated with carrying cash, while also providing clear transaction records for better financial management.
Mobile payments further elevate security through tokenisation, a technology that replaces sensitive card details with unique digital identifiers. Additionally, the value-added benefits of credit cards, such as rewards programs and cashback offers, provide a powerful incentive for consumers to choose digital methods for both domestic and international purchases.
About Visa
Visa is a world leader in digital payments, facilitating payment transactions between consumers, merchants, financial institutions, and government entities across more than 200 countries and territories.
Source: Fintech News Middle East
