In January, Saudi Arabia’s e-commerce sales soared by 45%, exceeding $5.5 billion. This increase highlights the Kingdom’s growing shift toward digital payments and online shopping. The surge in sales was driven by a combination of factors, including rising consumer spending and widespread adoption of digital payment methods.
The Saudi Central Bank (SAMA) reported that Mada card transactions, including online shopping, in-app purchases, and e-wallet transactions, jumped by 33.65%. In total, 111.42 million transactions were made, reflecting the country’s growing preference for contactless payment technologies. Mada, which provides debit and prepaid card services, has become a major player in this transition.
Mada’s rise in popularity is part of a broader trend of digital payments replacing cash transactions. The network’s use of near-field communication (NFC) technology for contactless payments ensures both speed and security for online and in-store purchases. Saudi consumers, aided by the adoption of NFC-enabled devices, are embracing this technology in increasing numbers. As a result, Mada is becoming the preferred method of payment for many shoppers.
A key factor contributing to the growth is the country’s improving economic conditions. Dual-income households and the country’s overall economic strength have boosted consumer purchasing power. The ease of use and security offered by digital payment solutions like Mada are also contributing to the rapid shift toward a cashless society.Spending on various goods and services saw significant growth. For instance, spending on miscellaneous goods, including personal care and supplies, accounted for 12% of total sales, amounting to around $1.9 billion.
