Saudi- eCommerce remains key driver of electronic payments

(MENAFN- Arab News) Saudi Arabia''s key driver of electronic payments is e-Commerce says Ahmed Gaber Visa country manager for Saudi Arabia in Riyadh.

''Saudi Arabia has been witnessing phenomenal growth in e-Commerce over the last few years as a result of which the country is seeing accelerated expansion of electronic payments'' Gaber told a media roundtable.

Improving Internet connectivity access to high-end mobile devices and the growing number of online merchants that accept card payments are prompting consumers to shop online.

The overall upturn is also indicative of the increasing purchasing power of mid-segment consumers that is driving ''aspirational'' spending'' Gaber said pointing out that there is positive growth on the back of advancements in the country''s technology and communication infrastructure.

According to industry sources online transaction volumes in Saudi Arabia grew by more than 30 percent in 2014. Some 2.2 billion Visa cards are being used in all parts of the world and the annual financial transactions have reached $7 trillion till the end of March 2014.

The results from VisaNet the global payments company''s processing platform released at the media roundtable is aligned with the online retail trends in Saudi Arabia where Internet penetration currently stands at 60 percent and is rapidly increasing.

Growing e-Commerce in the Kingdom is also prompting financial institutions to offer products that are exclusively targeted at online shoppers he added. Examples of this include Al-Rahji Bank Saudi British Bank (SABB) Samba Financial Group and Riyad Bank that offer cardholders cash back reward points flexible repayment options etc. for online purchases.

Visa cards in Saudi Arabia are also on the rise with debit card issuance doubling over the past five years. Cross-border spending on Visa cards shows that cardholders from Saudi Arabia spent the most in the United States the UAE the UK and Turkey.