Saudi Arabians Turning Increasingly to Mobile Payments

We all know mobile payments are catching on more in some places than in others. The UK, for example, is taking to this technology rapidly, as are parts of Europe and huge chunks of Africa.

One major new force in the mobile payments arena is Saudi Arabia, where 68 percent of consumers are turning to mobile payments via mobile phones as a matter of preference.

That’s the word from the Mastercard Impact of Innovation Study, which found that tablets were the distant second at 35 percent, and ID cards even farther back at 25 percent.

Authentication, meanwhile, was most often preferred by short message system (SMS) codes, with personal identification number (PIN) and fingerprint scan coming in behind.

What’s more, the Saudi consumers seemed to believe that this technology will get increasingly democratized in the years ahead; almost 80 percent of those surveyed believe digital services will spread to more users in the years ahead.

A substantial number, however, believe that digital services will stay a privilege meant for smaller groups. Given that smartphones are the most commonly-used device among Saudi consumers—followed by laptops and desktop PC—it may be a bad bet to bet against more users getting access to mobile payments.

Indeed, most users believe digital innovation is a good thing; 60 percent of consumers said as much, and actually considered technology’s future to be bright. Just five percent believed the impact negative, which likely puts the remaining 35 percent at neutral.

Essentially, with more customers taking advantage of smartphones in general, it’s not surprising to see these customers want to get the most out of the smartphone.

Mobile payments can represent an incredible convenience, especially if there’s reason to use the devices over cash or card. In some places, however, convenience and that “gee-whiz” factor of using something futuristic may actually be favored, and based on how optimistic the Saudis seem to be about technology’s future, there may just be a large number of early adopters in the region.

Still, markets are markets, and right now, the Saudi market for mobile payments is a big one that demands attention.