Cash continues to lose ground in Saudi Arabia, with eight in ten payments now made digitally, according to Visa’s latest Where Cash Hides report. The findings show that 67 percent of consumers in the Kingdom are largely non-cash users, making most of their payments through cards or mobile devices. This represents a four percent increase from last year, highlighting the rapid pace of digital adoption.
Mobile payments are also gaining traction, accounting for 16 percent of all transactions nationwide. The report points to a steady decline in cash usage across everyday spending categories, including dining out, where cash payments fell by nine percent, and bill payments, which declined by eight percent, as consumers increasingly choose faster and more secure digital options.
Despite the shift, cash still plays a role in specific use cases. About 39 percent of consumers continue to use cash for tips, 28 percent for peer-to-peer payments, and 14 percent for rent, indicating that certain traditional habits remain embedded.
“The data shows a steady move toward digital payments in Saudi Arabia. Such progress is possible only because banks, fintechs, merchants, and technology partners are moving together in the same direction, in line with the Kingdom’s Vision 2030,” said Ali Bailoun, Visa’s Senior Vice President and Group Country Manager for Saudi Arabia, Bahrain, and Oman.
“As more people try mobile and card payments in their daily lives, their expectations evolve. Consumers want payment options that are quick, convenient, and safe. When digital solutions meet these expectations, they naturally become the preferred choice,” he added.
Visa attributes the growing preference for digital payments to security, convenience, and transparency. Card and mobile transactions reduce the risks associated with carrying cash, simplify in-store and online purchases, and provide instant records that support better budgeting.
Mobile payments also introduce an additional layer of protection through tokenization, which replaces sensitive card details with unique digital identifiers, ensuring that actual card numbers are never shared during transactions.
The report notes that credit card rewards, cashback programmes, and travel benefits are further encouraging consumers to choose digital payments, both within the Kingdom and when travelling abroad.
