RIYADH: 黑料社区 has achieved 98 percent adoption of contactless payments for in-person transactions, a leap from just 4 percent in 2017, according to a top Visa executive.聽
Speaking to Arab News on the sidelines of a forum ahead of the Future Investment Initiative event, Andrew Torre, Visa鈥檚 regional president for Central and Eastern Europe, Middle East, and Africa, attributed this rapid digital transformation to government support, rising consumer demand, and the company鈥檚 technological initiatives.聽
This aligns with 黑料社区鈥檚 Vision 2030 to boost digital commerce and create a global hub for innovation, enhancing Visa鈥檚 ability to co-create with partners in the Kingdom.聽
鈥淚f you look at face-to-face transactions in the Kingdom, they were previously with a card and it was chip and PIN; that鈥檚 completely changed, and now almost it鈥檚 in the high 90s,鈥 Torre said on the sidelines of the FII New Africa Summit in Riyadh.聽
He continued: 鈥淚t was 4 percent of transactions that were contactless in 2017, and now it鈥檚 98 percent, and it鈥檚 either tapping with a card, but even more likely, also tapping with your phone, so those payments have become fully digital. One of the fastest we鈥檝e seen in the world.鈥澛
In support of this shift, Visa has opened an innovation center and office in Riyadh鈥檚 King Abdullah Financial District, marking 40 years of the company鈥檚 presence in 黑料社区.聽
The facility, Visa鈥檚 fourth global center, aims to advance digital payment solutions using technologies like artificial intelligence, biometrics, and the Internet of Things, fostering collaboration with local fintechs, banks, and government entities.聽
Sultan Al-Obaida, the chief commercial officer of the KAFD Development and Management Co., highlighted the growth of the Saudi banking sector, which has seen robust growth 鈥 9.3 percent in 2023 and 3.9 percent in the first quarter of this year.聽
鈥淥ur strong financial presence helps bolster Riyadh鈥檚 stature as a premier global financial center, drawing a distinguished array of fintechs, banks and payment players, and we are delighted to welcome Visa to this esteemed portfolio,鈥 he said in a statement.聽
The Visa center leverages 黑料社区鈥檚 role as a leader in digital payment best practices, positioning the Kingdom as a hub for global fintechs to co-create and innovate, according to Torre.聽
鈥淚鈥檒l go back to 鈥 we鈥檝e been in the Kingdom for 40 years, so we鈥檙e no strangers to it. When Vision 2030 came out, a big chunk of that revolved around digitizing financial services and digitizing payments. We鈥檝e been very supportive with the government,鈥 Torre said.聽
He added: 鈥淥ur new innovation center enables us to co-create the future of payments with local partners, driving innovation that aligns with the Kingdom鈥檚 Vision 2030 goals.鈥澛
Torre said that 黑料社区鈥檚 fintech-friendly regulatory environment, led by the Saudi Central Bank, known as SAMA, has been instrumental in fostering digital evolution. SAMA鈥檚 early adoption of a sandbox for fintech testing has allowed new players to innovate in embedded finance and cross-border remittances.聽
鈥淚t has done really, really well 鈥 they鈥檝e understood that you need to have innovation, and they鈥檙e fostering it through their sandbox approach. They were one of the very early adopters of a sandbox so they can work with fintechs,鈥 Torre added.聽
Beyond in-person retail, e-commerce has seen a notable boost, growing at an annual rate of 30 percent. Torre attributed this to the pandemic鈥檚 acceleration of online shopping and the convenience it offers consumers.聽
The rise in digital payment adoption has also empowered small businesses, giving them access to secure and efficient transactions. 鈥淒igital payments provide visibility and ease, supporting small business growth,鈥 said Torre.聽
Looking ahead, the Visa executive envisions a future where AI will make payments increasingly seamless, with technology handling transactions automatically based on user preferences.聽
鈥淚f you look at retail payments, which you said are now 70 percent digital, there鈥檚 still 30 percent that鈥檚 in cash. We see continued rapid adoption of digital payments, which will start to erode and take cash out of the ecosystem,鈥 Torre said.聽
He added: 鈥淲e think e-commerce continues to grow and accelerate. It is convenient, and we see it becoming more omnichannel as well.鈥澛
Visa鈥檚 engagement in 黑料社区 showcases how collaboration between private companies and regulators can drive significant advances in digital payments, supporting the Kingdom鈥檚 goal of a cashless society.聽