The Kingdom of Saudi Arabia has observed a significant 20 percent year-on-year upsurge in point-of-sale (POS) transactions this February, amounting to SR53.72 billion ($14.33 billion). The swell in activity underscores the country’s broader push towards a digital-first economy.
In a breakdown of consumer spending, the food and beverage sector commanded the lion’s share of POS expenditures, representing 15.7 percent with an outlay of SR8.43 billion. Hot on its heels, restaurant and café expenses accounted for 15 percent of the total, tallying up to SR8.02 billion.
POS systems are commonly utilized for in-store purchases, such as transactions at cash registers or through card swipes.
This uptick in digital transactions is in line with Saudi Arabia’s commitment to digital transformation, supporting its objectives for sustainable city development and a robust digital economy.
An impressive 93 percent of these sales were conducted using near-field communication (NFC) technology via mobile phones and cards, highlighting the rapid adoption of this convenient and hygienic contactless payment method.
With consumer preferences leaning towards quick and secure transactions, businesses are swiftly integrating NFC capabilities into their payment solutions, incorporating advanced security measures to combat fraud.
Recent central bank data indicates the decommissioning of 349 ATMs as of February 2023, while the introduction of 5.4 million new cards during the same period marks a decisive move away from cash towards digital payment methods.
Furthermore, there was a notable surge in POS spending on miscellaneous goods and services, such as personal care, supplies, and maintenance, which accounted for 20 percent of the overall increase in POS sales. This category alone grew by 39 percent, reaching SR6.5 billion in February 2024.
The highest growth rate among all categories was recorded in miscellaneous goods, with the hotel sector also showing significant gains of 28 percent, achieving sales of SR1.52 billion.
In addition, the beverage, food, and jewelry sectors each saw a rise of 23 percent and 21 percent, respectively.
Riyadh, the nation’s capital, led the charge in POS sales, claiming 34 percent of the total, while Jeddah followed with 14 percent. Riyadh’s population has boomed from half a million in 1972 to over 7.8 million in 2024, a factor that has contributed to its status as a commercial powerhouse with a high concentration of sales transactions.