Saudi Arabia is rapidly advancing toward a cashless society, driven by a booming fintech sector, robust regulatory backing, and widespread consumer adoption of digital services. The initiative forms a key pillar of the Kingdom’s Vision 2030 reform plan, aiming to modernize its economy and financial infrastructure.
From high-tech districts in Riyadh to small businesses in remote towns, the transition from cash to digital payments is well underway. The country’s youthful, tech-savvy population and rising use of mobile payment apps are accelerating the shift.
“The Kingdom’s move to a cashless economy presents a major opportunity for financial institutions to rethink their business models,” said Khalid Al-Sharif, CEO of Abdul Latif Jameel Finance. “Banking is moving from branches and cash to mobile services, artificial intelligence, and digital financing.”
The fintech sector, a cornerstone of this transformation, has witnessed rapid growth. By the end of 2023, the number of fintech firms in Saudi Arabia had reached 216—44 percent above initial targets. Venture capital investment in the sector also soared, with SR2.5 billion ($666 million) raised in 2023 alone. Fintech assets under management are projected to hit $64 billion in 2024.
“The rise of digital banking and blockchain-based solutions will help position Saudi Arabia as a regional fintech leader,” said Imad Kaddoura, a partner at PwC Middle East.
Digital banks are now using artificial intelligence and data analytics to offer personalized services and reach underserved populations. Meanwhile, mobile payment platforms such as stc pay, Apple Pay, and Mada Pay are transforming everyday transactions—from groceries to utility bills.
According to Al-Sharif, 70 percent of all retail consumer transactions in 2023 were electronic, up from 62 percent in 2022. The Saudi Central Bank (SAMA) aims to push this figure to 80 percent by 2030, reinforcing the shift through regulatory support and infrastructure upgrades.
SAMA’s regulatory sandbox allows fintech firms to test blockchain and open banking solutions in a controlled environment. These innovations, officials say, will enhance transparency and competition while safeguarding consumer data.
But challenges remain. Experts warn that increased digitization brings heightened cybersecurity risks. “Cybersecurity and fraud prevention must be central to the financial ecosystem,” said Al-Sharif.
Still, the long-term goal is clear: a digital-first economy that boosts financial inclusion, supports small businesses, and strengthens Saudi Arabia’s global competitiveness.
“With Vision 2030 as a roadmap, the Kingdom is building a more inclusive, efficient, and resilient financial future,” said Kaddoura.
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