In a significant indicator of its rapid digital transformation, Saudi Arabia has seen digital payments account for 80% of all transactions, according to a new report from Visa. This milestone underscores the Kingdom’s successful push towards a cashless economy and marks a profound shift in consumer behavior.
A Kingdom Moving Beyond Cash
The report from the global payments leader highlights a dramatic decline in the use of physical cash across the country. The surge to 80% in digital transactions, encompassing everything from contactless cards to mobile payments, reflects the high adoption rate of new financial technologies by both consumers and merchants.
This transition has been accelerated by strong government support, widespread mobile connectivity, and a young, tech-savvy population eager to embrace more convenient and secure payment methods. The growth points to a maturing digital infrastructure that is now on par with leading global economies.
Vision 2030’s Fintech Ambitions
This achievement is a direct result of the strategic goals outlined in Saudi Vision 2030 and its Financial Sector Development Program. A key objective of the program is to increase the share of non-cash transactions, aiming to reach 70% by 2025. Surpassing this target ahead of schedule demonstrates the effectiveness of the Kingdom’s policies in fostering a robust fintech ecosystem.
The Central Bank of Saudi Arabia (SAMA) has played a pivotal role by creating a supportive regulatory environment, launching initiatives like the Saudi Payments network, and licensing a new wave of fintech companies and digital banks that are driving innovation in the sector.
Implications for the Startup Ecosystem
For founders, VCs, and tech professionals, this high rate of digital payment adoption is a powerful market signal. It confirms a large and receptive customer base for digital-first products and services, extending beyond just fintech to e-commerce, mobility, food delivery, and subscription-based models.
The data indicates reduced friction for customer onboarding and monetization, creating fertile ground for startups to scale more quickly. For investors, it de-risks investments in consumer-facing tech companies and highlights the immense opportunity within Saudi Arabia’s burgeoning digital economy.
About Visa
Visa is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions, and government entities across more than 200 countries and territories. Its mission is to connect the world through the most innovative, convenient, reliable, and secure payment network, enabling individuals, businesses, and economies to thrive.
Source: Fast Company ME
