Saudi Arabia Fintech Digital Payment Market Size | 2019-2033

Saudi Arabia Fintech Digital Payment Market Growth and Performance

• The Saudi Arabia fintech digital payment market size in 2033 will be US$ XX.22 Trillion, with a forecasted Compound Annual Growth Rate (CAGR) of 67.2%.
• In terms of type classification, the primary segment expected to lead is fintech digital commerce market, with an estimated market worth of US$ XX.46 Trillion by 2033.

Saudi Arabia Fintech Digital Payment Market Outlook

Saudi Arabia fintech sector is undergoing a profound transformation, fueled by rapid digitalization and strong government support. As part of its Vision 2030 initiative, the Kingdom is aggressively pushing towards a cashless economy, with digital payments playing a central role in reshaping financial transactions. In 2023, electronic payments accounted for 70% of total retail transactions, a significant leap from 62% in 2022. This shift is driven by the growing adoption of mobile wallets, biometric authentication, and regulatory advancements, positioning Saudi Arabia as a leader in the digital payments revolution.

The surge in e-commerce has been a major catalyst for digital payments. The country’s logistics sector achieved a remarkable milestone during Ramadan, delivering over 16.5 million parcels in just 20 days. With internet penetration nearing 99% and a tech-savvy youth population, online shopping has become the norm, fueling demand for seamless and secure payment solutions. Visa’s Tap to Phone technology, which converts smartphones into POS devices, has seen a 77% year-over-year adoption increase in the Kingdom, enabling small and medium-sized businesses (SMBs) to accept contactless payments with ease.

Buy Now, Pay Later (BNPL) services have also gained traction, with adoption rates reaching 42%. Companies like Checkout.com and Tabby are expanding BNPL options, allowing consumers to split purchases into interest-free installments. This trend enhances affordability while boosting merchant sales and customer retention. Saudi Arabia’s fintech landscape is further strengthened by regulatory support, including the establishment of a fintech sandbox that enables 45 companies to test innovative solutions in real-world environments.

Government initiatives are playing a pivotal role in fostering digital payment adoption. The Saudi Central Bank (SAMA) has launched Samsung Pay through the national payment system mada, enhancing the accessibility of mobile payments. Additionally, the introduction of three full-fledged digital banking licenses is driving competition and innovation in the sector. Investments in digital infrastructure have positioned Saudi Arabia among the top G20 nations for regulatory maturity and 5G network speed, ensuring a seamless digital payment experience for users.

The economic impact of digital payments is substantial, with transaction volumes reaching 10.8 billion in 2023. The fintech sector is projected to contribute SAR 13.3 billion to the GDP by 2030, creating thousands of new jobs and fostering financial inclusion. As cash transactions continue to decline, e-payments are expected to dominate up to 85-90% of retail transactions within the next five years. This rapid evolution aligns with the Kingdom’s broader goal of becoming a global fintech hub, attracting investments and driving innovation in digital financial services.

Cross-border digital payments are also gaining momentum, with Saudi Arabia actively collaborating with BRICS nations to develop a unified system using national currencies and blockchain technology. This initiative is expected to enhance trade efficiency and reduce reliance on traditional banking infrastructure. Moreover, the Kingdom's focus on smart city development, backed by digital payment integration, is reinforcing its commitment to modernization and economic diversification.

As the fintech ecosystem matures, emerging trends such as artificial intelligence (AI)-driven fraud detection, decentralized finance (DeFi), and open banking will further shape the future of digital payments in Saudi Arabia. The continued expansion of mobile wallets, BNPL solutions, and real-time payment networks will cement the Kingdom’s position as a regional leader in fintech innovation. With strong regulatory support, robust infrastructure, and a rapidly growing digital economy, Saudi Arabia is well on its way to achieving its Vision 2030 goals, ensuring a cashless, technologically advanced financial ecosystem.

Saudi Arabia Fintech Digital Payment Market Scope