Saudi Arabian E-Commerce Plays Key Role in Widespread Use of Electronic Payments
March 23, 2024
By: Michael Cheng
The growth of Saudi Arabia’s e-commerce market supported by a flourishing economy has contributed to a surge in electronic payments.
Local industry statistics indicated a 30 percent increase in online transaction volume during 2014. Saudi Arabia is expected to benefit from the positive direction of the country’s digital retail trend, as internet penetration ratings hit a whopping 60 percent.
”Saudi Arabia has been witnessing phenomenal growth in e-Commerce over the last few years as a result of which the country is seeing accelerated expansion of electronic payments,” said Ahmed Gaber, Visa country manager for Saudi Arabia in Riyadh.
A rapid increase in merchants that offer stable payment options has encouraged customers to shop from the comfort of their home or office. Furthermore, mid-segment consumers have reported consistent purchasing power due to the country’s thriving free market economy.
The shift from an agricultural society to a region with enhanced infrastructure has become the primary driver for the ongoing changes taking place in the area. Individuals now have better access to Internet services, which has allowed companies to take their businesses online.
To facilitate the country’s recent advancements in the digital space, financial service providers specializing in fraud and security have started to invest in the local tech sector.
“Security segments such as cloud security services, centralized security services, distributed denial-of-service (DDoS), managed fraud prevention services are amongst the leading contributors to MSS market in Saudi Arabia,” mentioned Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.
In order to sustain the ideal conditions of the eCommerce market, banking establishments, such as Al-Rahji Bank Saudi British Bank (SABB) Samba Financial Group and Riyad Bank, have started to extend their services to include reward points and versatile repayment options.
