Adam Jones

From partnerships and innovations to driving a digital society, here is how Mastercard is supporting Saudi Arabia in achieving its Vision 2030 goals.

How would you define the peculiarities and trends defining Saudi Arabia?

The payments landscape in Saudi Arabia is experiencing fundamental changes across channels and the value chain. These changes have been accelerated by globalization, changes in consumer behavior, and more activist regulations. According to Mastercard’s 2022 New Payments Index, in addition to being aware of solutions like digital cards, biometric payments, and open banking, consumers in Saudi Arabia are increasingly and actively using these solutions in their everyday lives. The index found that 89% of people in Saudi Arabia have used at least one emerging payment method in the last year. They include 42% who have used a tappable smartphone wallet, 31% who have used a digital money transfer app, and 21% who have used a BNPL installment plan. Consumers are also making purchases in increasingly diverse ways, including through voice assistants and social media apps. While traditional payment methods still have traction, 30% of consumers in Saudi Arabia indicated they used less cash in the past year. By contrast, 69% of Saudi users, compared to 61% globally, increased their use of at least one digital payment method in the last year, including digital cards, SMS payments, digital money transfer apps, and instant payment services. This contributes to the aims of Saudi Arabia’s Financial Sector Development Program (FSDP), under the strategic aims of Saudi Vision 2030, which has set a target of achieving a 70% cashless society by 2030.

What steps is Mastercard taking to connect and power a digital economy that benefits the communities in Saudi Arabia?

As a multi-rail company that serves merchants, banks, telecommunications organizations, financial technology companies, and governments, we at Mastercard are redefining the future of payments. We are committed to delivering simple, secure, and innovative payment solutions that will continue to drive digital transformation in Saudi Arabia and across the wider region. We are achieving this by forming productive partnerships across the spectrum, ensuring that people and organizations have access to the networks, tools, and solutions that can help them reach their full potential and achieve financial security. In 2021 we worked in cooperation with the Saudi Central Bank (SAMA), Saudi Payments, and IBM to launch Saudi Arabia’s instant payments system, “sarie,”, which allows bank customers to send and receive money in real-time using a wider range of services and transfer options. And in 2019, Vocalink, now known as Mastercard New Payment Platforms, and Saudi Payments introduced real-time, account-to-account payments in Saudi Arabia, enabling instant payments between financial institutions, businesses, and consumers. In addition to speeding up digital commerce, this enables newer fintechs and financial institutions to take advantage of the benefits of a digital economy.

Gaming and esports have been identified as key drivers of growth across Saudi Arabia, as they are expected to reach USD6.8 billion in value by 2030. How is Mastercard supporting the development of these industries and what specific initiatives are you currently involved with?

Gaming and esports have been identified as drivers of growth across Saudi Arabia, supporting the ongoing transformation of the nation’s digital infrastructure, economy, and society. Studies by the Saudi eSports Federation (SEF) show that 85% of gaming fans in the Middle East and North Africa are in Saudi Arabia, of which 78% are Saudi nationals. In June, we announced our partnership with the SEF, a historic agreement that will help showcase the new technologies that are transforming the Kingdom into a leading hub for gaming and esports. The collaboration will see us working with the SEF to curate special offerings, events, and engagements, using our technology to make payments easier for gamers and creating more immersive experiences and truly priceless moments for the people of Saudi Arabia and avid gamers from all around the world to enjoy. 6