Saudi Arabia Contactless Payment Market Overview, 2031

Saudi Arabia’s digital payments landscape has evolved rapidly over the last few years, with contactless payments emerging as a key component of the country’s financial transformation. This shift is heavily influenced by the government’s Vision 2030, which aims to reduce reliance on cash and position the kingdom as a leader in digital innovation. Major Saudi banks, such as Al Rajhi Bank, National Commercial Bank (NCB), and Riyad Bank, have played a pivotal role in advancing contactless payment solutions by offering NFC-enabled debit and credit cards. These banks have partnered with global payment providers like Mastercard and Visa to expand contactless options for consumers, facilitating quicker and more secure transactions. Additionally, the country’s public transportation systems, such as the Riyadh Metro, have integrated contactless payment systems, making travel more convenient for passengers. Smartphones have also become key devices in Saudi Arabia’s contactless payment ecosystem, with popular mobile wallet platforms like Apple Pay, STC Pay, and Samsung Pay gaining traction. These mobile wallets leverage Near Field Communication (NFC) technology, enabling users to make instant payments without needing to carry physical cards. Saudi Arabia’s push toward a cashless society has been supported by government regulations and policies encouraging fintech innovations. The Saudi Arabian Monetary Authority (SAMA) has introduced several initiatives to encourage the adoption of digital payments and the development of secure, user-friendly payment systems. However, challenges such as ensuring cybersecurity and tackling the digital divide in rural areas remain. Despite these challenges, the Saudi market is poised for continued growth in contactless payments, driven by technological advancements, strategic partnerships, and a government-backed drive for financial inclusion.

According to the research report, "Saudi Arabia Contactless Payment Market Outlook, 2031," published by Bonafide Research, the Saudi Arabia Contactless Payment market is anticipated to add USD 830 Million by 2026–31. In recent years, Saudi Arabia’s contactless payment market has been expanding rapidly across several sectors. The retail sector has been a significant adopter of contactless payment technology, with major retailers such as Carrefour and Al Othaim Hypermarket integrating contactless point-of-sale (POS) systems. These systems not only allow faster payments but also enhance the customer experience by reducing wait times. The hospitality industry has similarly embraced contactless payments, with high-end hotels, restaurants, and entertainment venues offering NFC-enabled payment solutions to guests. On the transportation front, Riyadh’s Metro project, set to open in the near future, will implement contactless payment systems, enabling passengers to tap and go using NFC cards or mobile wallets. Mobile wallets like STC Pay and Apple Pay are becoming more common, with these platforms offering a convenient and secure way for consumers to pay for goods and services. The financial services sector has also played a key role in driving adoption, with Saudi banks launching digital wallets and online payment systems, further accelerating the shift toward a cashless society. In parallel, government-backed initiatives such as the National Payment Gateway (NPG) are driving the development of secure payment infrastructure, setting the stage for continued growth in digital payments. The Kingdom’s regulatory environment, under the guidance of SAMA, continues to encourage digital payment solutions while ensuring compliance with international security standards.

In Saudi Arabia, the dominant technology for contactless payments is Near Field Communication (NFC), which allows consumers to make secure transactions simply by tapping their cards or smartphones at payment terminals. NFC technology is widely used by major banks such as Al Rajhi Bank and NCB, which have issued millions of NFC-enabled debit and credit cards. These cards are accepted at most retail locations, restaurants, and transportation systems across major cities. Major cities like Riyadh, Jeddah, and Dammam are rapidly adopting these systems for public transportation, parking, and retail. QR code payments are also gaining popularity in Saudi Arabia, especially in the growing mobile payments sector. Apps like STC Pay, Mada Pay, and Apple Pay have integrated QR code-based transactions, allowing users to scan codes at checkout to make payments seamlessly. In addition to these, Saudi banks are increasingly adopting Host Card Emulation (HCE) technology, which allows smartphones to make secure contactless payments without the need for physical cards. This is evident with services like Apple Pay and Samsung Pay, which are growing rapidly in the Kingdom. Furthermore, biometric payment technologies are expected to grow in Saudi Arabia, with experiments in facial recognition and fingerprint scanning for secure transactions in various sectors, including banking and retail. This trend is in line with the country’s broader drive toward enhancing cybersecurity and user authentication. The increasing use of smartphones and wearable devices for payments is transforming the payment landscape, providing consumers with even more options for secure and convenient transactions.

The retail sector is one of the primary drivers of contactless payment adoption in Saudi Arabia, with retailers such as Carrefour and Lulu Hypermarket leading the way in integrating NFC-enabled POS terminals across their stores. These retailers cater to the growing consumer demand for quick and secure payment options, offering both debit and credit card contactless transactions. In addition, the restaurant and hospitality sectors are increasingly adopting digital payments, with high-end establishments like the Ritz-Carlton and the Four Seasons offering seamless and fast payments via contactless cards or mobile wallets. The transportation sector is also experiencing rapid adoption, with public transport services in Riyadh and Jeddah exploring NFC-enabled solutions for bus and metro services. The recent launch of the Riyadh Metro, in particular, is expected to significantly increase the adoption of contactless payment solutions for daily commuting. In the financial sector, banks such as Al Rajhi Bank, SABB, and Banque Saudi Fransi are offering digital wallets, enabling customers to make payments through their smartphones or wearables, reducing the need for physical cards. Healthcare services, including major hospitals and pharmacies, are also shifting toward digital payments to provide patients with a faster and safer way to pay for medical services. Furthermore, the government is actively pushing for the adoption of digital payment methods for public services, including utilities and toll payments. This is aligned with the country’s Vision 2030 initiative to digitize public sector services and reduce reliance on cash.

In Saudi Arabia, smartphones have become a major device for contactless payments, with popular mobile wallet platforms such as STC Pay, Apple Pay, and Samsung Pay seeing significant growth. These platforms leverage NFC technology to enable users to make secure payments by simply tapping their phones against compatible terminals, eliminating the need for physical cards. The increasing adoption of smartphones, particularly among younger consumers, is one of the key factors driving the growth of contactless payments in the Kingdom. Additionally, contactless cards, issued by major banks such as Al Rajhi Bank and NCB, continue to be widely used across the country. These cards allow consumers to make fast and secure payments at retail stores, restaurants, and public transport systems. Wearables, such as smartwatches and fitness trackers, are also gaining traction in Saudi Arabia. Devices like the Apple Watch and Samsung Galaxy Watch allow users to make payments without needing to pull out their phones or cards, offering a convenient and seamless payment experience. The growth of wearable devices in the country is in line with the increasing trend toward mobile-first and contactless solutions. Furthermore, contactless payment technology is also being integrated into IoT devices, such as smart home systems and connected cars, creating new opportunities for consumers to make payments through everyday objects. As the digital payment landscape continues to evolve, smartphones, wearables, and contactless cards are expected to play an increasingly prominent role in facilitating secure, frictionless payments across Saudi Arabia.



Considered in this report
• Historic Year: 2020
• Base year: 2025
• Estimated year: 2026
• Forecast year: 2031

Aspects covered in this report
• Contactless Payment Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Technology
• Near Field Communication (NFC)
• Radio Frequency Identification (RFID)
• QR Codes & Barcodes
• Other (MST, Infrared (IR), Biometric Cards)

By End-User
• Retail
• Transportation & Mobility
• BFSI
• Hospitality (Hotels, cinemas, entertainment venues, Resturents, club & bars).
• Healthcare
• Others (Vending machines, self-service kiosks, Governments)

By Device
• Contactless Cards (Dual-Interface EMV Cards)
• Smartphones
• Wearables
• Others