Digital payments are rapidly reshaping consumer behavior in Saudi Arabia, with cash playing an increasingly smaller role in everyday transactions. According to Visa’s third edition of the Where Cash Hides report, 80% of transactions in the Kingdom are now conducted digitally, reflecting a steady shift away from cash.
The research highlights that 67% of Saudi consumers are now largely non-cash users, relying predominantly on payment cards or mobile devices for most of their purchases. This marks a 4% increase compared to the previous year, underscoring the growing preference for digital payment methods among Saudi consumers.
Mobile payments are particularly gaining momentum, accounting for 16% of all transactions. Visa attributes this shift to consumer demand for faster, more secure, and convenient payment options, supported by broader acceptance among merchants and significant improvements in the country’s digital infrastructure.
Cash usage has decreased across traditionally cash-heavy sectors. For example, cash usage for eating out has dropped by 9%, and for bill payments, it has fallen by 8%. However, cash is still used in certain day-to-day transactions, particularly for peer-to-peer payments. 39% of consumers still use cash for tips, and 28% rely on cash for certain peer-to-peer services. Additionally, 14% still use cash for property rent payments.
Ali Bailoun, Senior Vice President and Group Country Manager for Saudi Arabia, Bahrain, and Oman at Visa, noted that the growing reliance on digital payments is aligned with Saudi Vision 2030. As more people embrace mobile and card payments in their daily lives, they increasingly seek payment options that are quick, convenient, and secure.
The shift toward digital payments is driven by factors such as convenience, security, and added value. Debit and credit cards offer better transparency and ease of use compared to cash, while reducing the risks associated with carrying physical money. Mobile payments further enhance security through tokenization, which replaces sensitive card details with unique digital identifiers.
Moreover, the appeal of rewards programs, cashback offers, and lifestyle benefits linked to card usage continues to influence consumer preferences in Saudi Arabia, making digital payments even more attractive.
In conclusion, the growing trend of digital payments in Saudi Arabia reflects a shift in consumer behavior that is reshaping the payments landscape. With increasing demand for digital solutions, Saudi Arabia is becoming a cashless society, supporting the Kingdom’s broader Vision 2030 goals.
