Saudi Arabia’s shift from a predominantly cash-based economy to one where 72% of retail transactions are electronic represents one of the fastest payments transformations in any major economy. The target of 70% electronic payments by 2025, set under the Financial Sector Development Program, was achieved six months ahead of schedule.
The mada Ecosystem
At the center of the payments transformation is mada, the national payment scheme operated by the Saudi Payments company (a SAMA subsidiary). mada processes over 1.8 billion point-of-sale transactions annually, with the network supporting contactless NFC payments, QR code payments, and real-time peer-to-peer transfers through the Sarie instant payment system.
The introduction of mada Pay — the national digital wallet — has further accelerated adoption by enabling payments through smartphones without the need for physical cards. The wallet has been downloaded by over 14 million users since its launch.
Fintech Licensing Expansion
SAMA’s progressive regulatory approach has been instrumental. The central bank has issued 28 new payment institution licenses since 2023, creating competitive pressure that has driven down transaction fees, improved user experience, and expanded the range of available payment products.
The regulatory sandbox, operated jointly by SAMA and the Capital Markets Authority, has processed over 180 fintech applications, with 62 graduating to full licensure. This pipeline ensures continuous innovation in the payments space.
Merchant Adoption
Point-of-sale terminal density has reached 42 terminals per 1,000 inhabitants, among the highest in the Middle East. The government’s mandate requiring all businesses with annual revenue exceeding SAR 375,000 to accept electronic payments has been progressively expanded, with the threshold lowering to SAR 150,000 in 2026.
Infrastructure Investment
The underlying payments infrastructure has undergone significant modernization. The Sarie real-time gross settlement system processes inter-bank transfers in under 10 seconds, 24 hours a day. The Open Banking framework, launched in 2024, enables third-party providers to access bank account data (with customer consent) to build innovative financial products.