Payments using a mobile device accounted for 35 percent of all near-field communication transactions in Saudi Arabia in 2021, according to Saudi Payments.
Near-field communication payment transactions, also known as NFC payments, are those made via mobile devices and cards.
It is wireless data transfer that allows smart devices to share data when in close proximity. This technology powers contactless payments via mobile wallets like Apple Pay, Google Pay, as well as contactless cards.
The share of payment transactions made using a mobile device in all NFC payments grew from 22 percent in 2020.
The number of payment transactions using a mobile device in 2021 exceeded 1.8 billion, with the value exceeding SR128 billion. This reflected a year-on-year increase of over 182 percent.
In terms of NFC payment adoption, such payments accounted for 95 percent of all point-of-sale transactions in the Kingdom in 2021, up from 88 percent in 2020.
The NFC transactions reached over 5.1 billion, while their value exceeded SR473 billion ($126 billion).
On a global level, the Kingdom is leading in terms of NFC payment penetration as it surpassed the European average of 80 percent, Canada’s 76 percent, and Hong Kong’s 79 percent.
In the Middle East and North Africa region, Saudi Arabia still comes on top in terms of NFC payment penetration, followed by Kuwait with 81 percent, and then the UAE at 81 percent as well.
“This digital ecosystem supports the latest technologies and encourages consumers to make the shift as it provides them with the latest payment solutions aligned with the best global standards of security,” said Saudi Payments Managing Director, Abdulaziz Al Afaleq.
As of 2021, the Kingdom has over 1 million point-of-sale terminals that support the NFC features as a result of collaborations between the Saudi Central Bank, Saudi Payments, and other players to deploy relevant infrastructure.
Source: https://www.arabnews.com/node/2063161/business-economy