Saudi Arabia Fintech Mobile PoS Payment Market Size and Forecast by Device Types, End Users, Industry, Application, and Payment Type: 2019-2033

Saudi Arabia Fintech Mobile PoS Payment Market Growth and Performance

• The Saudi Arabia fintech mobile PoS payment market in 2033 will be US$ XX6.16 Billion, with a forecasted Compound Annual Growth Rate (CAGR) of 55.8%.
• In terms of device types classification, the primary segment expected to lead is smartphones, with an estimated market worth of US$ XX3.05 Billion by 2033.

Saudi Arabia Fintech Mobile PoS Payment Market Outlook

Saudi Arabia mobile point-of-sale (mPoS) payment market is undergoing a remarkable transformation, driven by rapid digitalization and government-backed financial reforms. The country has witnessed a significant surge in POS transactions, with a 20% year-on-year increase in February 2024, reaching $14.33 billion (SAR 53.72 billion). This growth underscores the nation's shift toward a cashless economy, in line with Vision 2030 objectives. The increasing adoption of near-field communication (NFC) technology has further accelerated this trend, with over 93% of transactions now utilizing contactless payment methods. Riyadh remains the leading contributor, accounting for 34% of total POS sales, a trend fueled by urban expansion and a growing digitally savvy population.

The expansion of mobile PoS solutions is playing a crucial role in empowering small and medium-sized businesses (SMBs), enabling them to accept digital payments seamlessly. Visa’s Tap to Phone technology has experienced a staggering 77% year-over-year growth in Saudi Arabia, transforming smartphones into efficient PoS devices. This innovation reduces the need for traditional PoS hardware, offering cost-effective and secure payment processing solutions for merchants. The telecommunications sector has also benefited significantly, with a 42% increase in POS transaction volume, highlighting the growing demand for digital financial services across various industries.

Consumer spending patterns further reflect the mPoS market's evolution. Food and beverages accounted for 15.7% of total spending in February 2024, followed closely by restaurants and cafes at 15%. Additionally, the retail and e-commerce sectors have witnessed substantial growth, with electronic payments in retail surpassing 70% of total transactions in 2023. The surge in contactless payments is not only enhancing consumer convenience but also driving financial inclusion. The Saudi Central Bank (SAMA) has played a pivotal role in fostering this ecosystem, with over one million PoS terminals now operational across the Kingdom, marking a 40% growth in terminal deployment since 2020.

The impact of technological advancements is evident in the increasing use of artificial intelligence (AI) and blockchain-based payment solutions. AI-driven financial analytics are optimizing transaction processing, fraud detection, and personalized financial services. Meanwhile, blockchain-based remittances are gaining traction, enabling secure and transparent cross-border transactions. Saudi Arabia mPoS market is also benefiting from the integration of biometric authentication in digital payment systems, enhancing security and consumer confidence.

Saudi Arabia’s strategic initiatives to promote a cashless economy have positioned it as a regional leader in digital payments. The adoption of Tap on Phone solutions has not only facilitated merchant accessibility but has also contributed to a 9.8% rise in POS transactions, totaling SAR 614 billion in 2023. The Kingdom’s commitment to financial technology innovation, coupled with high smartphone penetration and increasing debit card usage, is set to propel the mPoS market forward. Furthermore, as digital wallets and QR-code-based payments continue to gain popularity, Saudi Arabia's financial landscape is expected to witness sustained growth and modernization.

Saudi Arabia Fintech Mobile PoS Payment Market Scope