Saudi Arabians envisage a rise in cross-border payments by 2024, study shows

By Puja Sharma

Mastercard’s Borderless Payments Report 2023 reveals 43% of people in Saudi Arabia expect to send cross-border payments more frequently in the next 12 months. Around 40% of people in Saudi Arabia expect to receive more cross-border payments in the next year.

Mastercard’s Borderless Payments Report 2023 reveals that 43% of people in Saudi Arabia expect to send cross-border payments more frequently in the next 12 months.

Globally, the report highlights two in five (40%) senders, and half of receivers, intend to use cross-border payments more frequently over the same period, while approximately half plan to increase the value of their transactions.

The report also details that 40% of people in Saudi Arabia expect to receive more cross-border payments in the next year. The findings from Mastercard’s third borderless payments report, draw on the views of over 11,000 consumers and small businesses across 15 different markets in the Americas, Europe, the Middle East, Africa and Asia.

The report results show that speed, lower fees and 24/7 service are the key factors for people in Saudi Arabia when choosing a brand or company to use for cross-border payments. According to the report, over half (52%) of respondents in Saudi Arabia said delivering funds quickly was crucial, while 49% reiterated a preference for lower fees for sending and receiving money, and 44% expressed a demand for a website or an app that designed to facilitate cross-border payments anytime, anywhere.

Maria Medvedeva, Country Manager, Saudi Arabia, and Bahrain, Mastercard, said: “Saudi Arabia is home to a sophisticated community of consumers and businesses that rely on cross-border payments to support their everyday needs. Our latest findings show that these payments continue to play a vital role for many across the Kingdom, with our research underlining the importance of convenience and security to those we serve. In embracing these new payment platforms, Mastercard is committed to driving financial inclusion through innovative cross-border payment solutions, recognizing the transformative power of remittances.”

At a time when digital transformation and the digitization of financial services has placed an emphasis on greater security, 40% of the report’s Saudi respondents stressed the importance of keeping personal information secure. 29% called for fraud protections to be in place.

Speaking to the growth of the Saudi small and medium-sized enterprise (SME) sector, the research also highlights that 80% of SMEs in Saudi Arabia say they are actively planning to do more international business in the future, with 84% saying they are using more international suppliers and services than they were 12 months ago.

Notably, 88% of SMEs say they use an app to make cross-border payments — the second highest percentage across the markets surveyed.