Saudi e-commerce sales using Mada cards have surged to $4.89 billion, reflecting a 37% annual growth and a shift towards a cashless economy

Saudi Arabia’s e-commerce landscape continues to thrive, as recent figures reveal a significant milestone in online sales. In October 2024, e-commerce transactions using Mada cards, the Kingdom’s national payment cards, reached SR18.34 billion ($4.89 billion). This marks a 37% annual increase, signalling a strong growth trajectory in the country’s digital retail sector.

Mada cards, which offer debit and prepaid services within Saudi Arabia’s network, play a crucial role in facilitating secure, contactless payments. They enable seamless transactions both in physical retail outlets and online, with Near Field Communication (NFC) technology ensuring swift and safe exchanges. According to Saudi Arabia’s central bank, SAMA, this data excludes payments made through international credit cards like Visa and MasterCard.

The surge in Mada card transactions is accompanied by an uptick in the number of e-commerce transactions, which grew by 29.3% year-on-year, reaching approximately 101 million transactions in October alone. This growth reflects the rapid adoption of digital payments and online shopping in the Kingdom.

Saudi Arabia’s exceptional digital readiness further fuels this expansion. With a smartphone penetration rate of 98%, the Kingdom surpasses other advanced markets, such as the US (90%) and the UK (80%). This high smartphone usage, combined with a youthful, tech-savvy population, has created a thriving environment for e-commerce.

The Kingdom’s population is not just digitally connected but increasingly affluent. With the International Monetary Fund (IMF) forecasting a 15.95% rise in per capita GDP by 2029, Saudi consumers will have greater disposable income, further driving demand for online shopping, especially in sectors like fashion, apparel, and electronics. This growing economic power, alongside government-backed initiatives to foster a cashless economy, positions Saudi Arabia as a key player in the global e-commerce space.

The government’s commitment to encouraging cashless transactions and supporting local businesses has enhanced the e-commerce ecosystem, presenting numerous opportunities for both international and homegrown brands. This ongoing transformation of Saudi Arabia’s retail landscape is set to shape the future of the Kingdom’s economy and its digital consumer culture.