85% of Saudi retail payments digital; e-commerce, remittances offer growth opportunities: Visa

Ali Bailoun, Visa’s Senior Vice President and Group Country Manager for Saudi Arabia, Bahrain and Oman

Ali Bailoun, Visa’s Senior Vice President and Group Country Manager for Saudi Arabia, Bahrain and Oman, said digital payments now account for around 85% of retail payments in Saudi Arabia.

He said the next phase of growth will be driven increasingly by the expansion of e-commerce, payments by small and medium-sized enterprises (SMEs), and cross-border remittances.

In an interview with Argaam, Bailoun said the most significant market shift goes beyond increased digital payment usage. It also reflects changes in consumer behavior around shopping, travel and money transfers, alongside rising expectations for seamless and secure payments.

Visa’s Money Travels study found that 54% of remittance users surveyed in Saudi Arabia rely on online banking or banking apps.

Eight in 10 make multiple transfers each year, he added.

Bailoun said future growth in digital payments will not depend solely on higher average transaction values. Significant room for expansion remains in e-commerce, SME payments and cross-border remittances.

International visitor spends SAR 10,400 on average

On visitor spending, Bailoun said tourism supports a broad range of economic activities in the Kingdom.

Visa’s Global Travel Intentions study showed that international visitors surveyed spent an average of around SAR 10,400 per trip to Saudi Arabia.

Accommodation accounted for the largest share of visitor spending at 19%, followed by transportation to and from the destination at 18%, food and beverages at 17%, and experiences and activities at 15%.

Shopping was among the activities undertaken by 75% of visitors to the Kingdom surveyed, highlighting the broad impact of tourism spending across a wide range of activities and businesses.

Credit and debit cards were among the most widely used payment methods among visitors.

However, 42% of travelers to the Kingdom surveyed carried cash during their trip, mainly for emergencies and small purchases.

The figure indicates continued scope to expand digital payment acceptance across more sectors and points of sale, giving visitors greater ability to rely on electronic payment methods throughout their stay, he said.

Competition raises importance of security, value proposition

On intensifying competition among banks, payment companies and fintech firms, Bailoun said the value proposition offered by each service provider is becoming increasingly important as Saudi Arabia’s payments market evolves.

Fees are one element of competition, but consumers also place significant importance on service reliability and the security of their funds, he said.

Visa’s Money Travels study showed that one in four remittance users surveyed in Saudi Arabia had experienced fraud, underscoring the importance of investing in fraud prevention and risk management technologies.

Visa continues to invest in fraud prevention, tokenization and risk management solutions. It is also expanding payment acceptance and developing infrastructure that enables payments to be processed more efficiently.

Bailoun said the market’s evolution will depend on combining ease of use, broad acceptance and enhanced security.

This will support greater participation by consumers and businesses in the digital economy.