Saudi e-commerce sales using Mada cards reached SR18.34 billion ($4.89 billion) in October – an annual increase of around 37 percent, recent data revealed.
According to the Kingdom’s central bank, also known as SAMA, this figure includes online shopping payments, in-app purchases and e-wallets, and excludes transactions by Visa, MasterCard and other credit cards.
Mada cards are Saudi Arabia’s national payment cards, offering debit and prepaid services within the network. They use Near Field Communication for contactless payments, allowing secure transactions at retailers and online, and play a key role in supporting the country’s cashless economy.
The number of e-commerce transactions also increased by 29.3 percent on a year-on-year basis to reach around 101 million in October.
The prevalence of smartphones, with a 98 percent penetration rate according to the Kingdom’s Fashion Commission, highlights the digital readiness of Saudi consumers compared to advanced markets like the US, which has a 90 percent rate, and the UK with 80 percent.
The Kingdom’s youthful and increasingly affluent population is embracing online shopping, spurred by rising disposable incomes and growing awareness of e-commerce benefits like convenience and cost savings.
Saudi Arabia’s per capita gross domestic product is on a steady rise, with the IMF forecasting a 15.95 percent increase by 2029, reaching $38,124.66.
This growing individual income is enhancing purchasing power, spurring demand for fashion, apparel, and other consumer goods. Combined with government initiatives to promote cashless transactions and local brand development, these trends are creating ripe opportunities for e-commerce players.—AN
