Point-of-sale (POS) transactions in Saudi Arabia reached new record highs, reflecting the rapid growth of the digital payments sector and strong consumer spending. According to the weekly bulletin issued by the Saudi Central Bank (SAMA), the total number of POS transactions during the week of April 26 to May 2, 2024, exceeded 270.67 million, with a total value exceeding SAR 16.63 billion, marking a significant increase compared to the same period of the previous year, which amounted to SAR 12.07 billion.
General context and the shift towards a cashless economy
This significant growth comes within the framework of the Kingdom's ambitious national efforts under Saudi Vision 2030, of which the Financial Sector Development Program is a key pillar. The program aims to reduce reliance on cash and enhance financial inclusion, targeting a 70% rate of non-cash transactions by 2025. The Saudi Central Bank has played a pivotal role in achieving this goal by developing an advanced payments infrastructure, such as the Mada network, and encouraging the use of digital wallets and mobile payment applications, thus facilitating the adoption of these modern technologies by both consumers and merchants.
The importance of the event and its economic impact
These figures are a strong indicator of the dynamism of the Saudi economy and consumer confidence, with high spending across diverse sectors reflecting continued and accelerating business activity. Domestically, the increase in electronic payments contributes to greater financial transparency, combats the informal economy, and provides accurate data that helps policymakers and businesses understand market trends. Regionally and internationally, these indicators reinforce the Kingdom's position as a leading financial and technological hub in the Middle East, attracting foreign investment in the booming fintech sector.
Spending details by sector and city
Central Bank data showed that the “restaurants and cafes” sector “food and beverages” accounted for the largest share in terms of the number of transactions, with the former reaching 65.66 million transactions worth 1.98 billion riyals, and the latter 61.92 million transactions worth 2.83 billion riyals, indicating continued strong spending on basic and recreational consumer goods.
Other sectors also witnessed remarkable activity, with the health sector recording 11.25 million transactions worth 1.02 billion riyals, the clothing and accessories sector 11.2 million transactions worth 1.38 billion riyals, while the transportation sector recorded 8.01 million transactions worth 1.23 billion riyals.
topped Riyadh the list with 86.31 million transactions with a total value of 5.52 billion riyals, followed by Jeddah with 30.48 million transactions with a value of 2.18 billion riyals, and then Dammam with 10.87 million transactions with a value of 809.75 million riyals, reflecting the economic and population weight of these major cities.
