Saudi Arabia’s march toward a cashless economy

Saudi Arabia has emerged as a regional leader in electronic payments, driven by rapid digital transformation, a sophisticated financial infrastructure, and ambitious reforms under Vision 2030. 

As the Kingdom accelerates its transition toward a digital economy, electronic payments have become a central pillar of its broader modernization agenda.

Over the past decade, Saudi Arabia has made significant progress in reducing its reliance on cash by expanding digital payment solutions, strengthening fintech capabilities, and implementing a regulatory framework that promotes innovation while ensuring the security and efficiency of financial transactions. These efforts have positioned the Kingdom at the forefront of digital financial services in the region.

The pace of change has been remarkable. Saudi Arabia achieved its Vision 2030 target of increasing electronic payments to 70 percent of total retail transactions ahead of schedule in 2023. Since then, adoption has continued to accelerate, surpassing the original benchmark by a wide margin.

According to the Saudi Central Bank, electronic payments accounted for 85 percent of total retail transactions in 2025, up from 79 percent in 2024. The increase reflects the continued expansion of the Kingdom’s national payment systems, with the number of electronic transactions reaching 14.6 billion in 2025, compared with 12.6 billion the previous year.

These figures underscore Saudi Arabia’s commitment to financial inclusion, digital innovation, and economic modernization. They also reinforce the Kingdom’s growing status as a regional fintech hub, supported by rising transaction volumes across the national payments ecosystem.

Growth has been particularly strong across key payment channels. Transactions conducted through point-of-sale terminals reached approximately 11.5 billion in 2025, an increase of more than 11 percent compared with the previous year. Meanwhile, mada e-commerce transactions climbed to about 1.77 billion, posting annual growth of more than 57 percent.

Other payment platforms also recorded robust expansion. Transactions processed through the Sarie instant payment system totaled around 784 million, representing year-on-year growth of more than 32 percent. Transactions executed through the SADAD payment system reached approximately 373 million, reflecting continued growth in the use of digital payment services across the Kingdom.

The steady rise in transaction volumes demonstrates the success of efforts to broaden access to innovative payment solutions and encourage the adoption of diverse digital payment methods. More importantly, it highlights a fundamental shift in consumer behavior as individuals and businesses increasingly embrace the convenience, speed, and security of electronic transactions.

This transformation aligns closely with the objectives of Vision 2030, particularly the goal of building a less cash-dependent economy and accelerating digitalization across the financial sector. Looking ahead, SAMA is expected to continue enhancing the national payments infrastructure, expanding payment options, and supporting the development of advanced technologies that improve efficiency, foster innovation, and deepen financial inclusion.

The benefits extend beyond convenience. Greater reliance on electronic payments reduces the significant costs associated with printing, transporting, storing, and securing physical currency. It also strengthens transparency, improves the efficiency of economic activity, and broadens participation in the formal financial system.

Yet the transition toward a cashless society should be approached with balance and prudence. International experience shows that while digital payments deliver substantial economic and social benefits, excessive dependence on electronic systems can expose economies to cybersecurity threats, technological failures, and operational disruptions.

For that reason, the objective should not be the complete elimination of cash, but the creation of a resilient, secure, and inclusive payments ecosystem. Such a system would capitalize on the advantages of digital innovation while preserving the flexibility and safeguards necessary to maintain public confidence and financial stability under all circumstances.

Saudi Arabia’s rapid progress in electronic payments reflects the success of its broader economic transformation and its commitment to building a modern digital economy. The challenge now is to sustain this momentum while ensuring that the payments ecosystem remains secure, accessible, and resilient in an increasingly interconnected world.

• Talat Zaki Hafiz is an economist and financial analyst.

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