Payment and settlement system in Saudi Arabia: A multidimensional study

  • Received November 11, 2022;
    Accepted January 6, 2023;
    Published January 13, 2023
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/bbs.18(1).2023.04
  • Article Info
    Volume 18 2023, Issue #1, pp. 38-52
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This work is licensed under a Creative Commons Attribution 4.0 International License

A country’s payment and settlement system refers to payment means or instruments, procedures, supportive and technical services of clearance, fund transfer, and final settlement. To study the various dimensions of the payment and settlement system, an online survey was administered and 240 responses were collected from Saudi and non-Saudi nationals, while secondary data were obtained from the SAMA (Saudi Arabian Monetary Authority) website. Index numbers, percentages, ranks, Average Trend Growth Rate, and payment weights means are applied to get the mutual growth trend, average growth, and contribution of specific means in payment and settlement in Saudi Arabia. There are negative trends in the traditional payment and settlement system in Saudi Arabia. Based on the value (amount) of transactions, Mada (Debit card) and E-payment (SADAD – a payment system, and SARIE – Saudi Arabian Riyal Interbank Express) are the most significant contributors to online payment (51.63%), while POS (point of sale) is the fastest-growing (158%) means of payment and settlement in Saudi Arabia. The means of traditional payment and settlement negligibly (< 1%) contribute to the payment and settlement system in Saudi Arabia. The analysis of responses reveals that payment and settlement users were unsatisfied with the various dimensions of security (39%) and traceability (35%) of the payment and settlement systems in Saudi Arabia. All dimensions of security and traceability must be considered to increase the degree of satisfaction with payments and, in particular, settlements in Saudi Arabia.

Acknowledgment
The authors are grateful to the Deanship of Scientific Research, Prince Sattam Bin Abdulaziz University, Alkharj, Saudi Arabia, for providing funding to complete this project (Project No. 2021/02/18709).

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    • Table 1. Growth of payment and settlement means in Saudi Arabia (by number of transactions)
    • Table 2. Weights and composition trend of payment and settlement means in Saudi Arabia (by number of transactions)
    • Table 3. Growth of payment and settlement means in Saudi Arabia (by value of transactions, thousands SA riyals)
    • Table 4. Weights and composition trend of payment and settlement means in Saudi Arabia (by value of transactions)
    • Table 5. Payment and settlement users’ responses on security in payment services in Saudi Arabia
    • Table 6. Payment and settlement users’ responses on ease in payment services in Saudi Arabia
    • Table 7. Payment and settlement users’ responses on convenience in payment services in Saudi Arabia
    • Table 8. Payment and settlement users’ responses on traceability in payment services in Saudi Arabia
    • Table 9. Payment and settlement users’ responses on speed in payment services in Saudi Arabia
    • Conceptualization
      Anis Ali
    • Data curation
      Anis Ali
    • Formal Analysis
      Anis Ali
    • Funding acquisition
      Anis Ali
    • Methodology
      Anis Ali
    • Project administration
      Anis Ali
    • Resources
      Anis Ali
    • Validation
      Anis Ali
    • Writing – original draft
      Anis Ali
    • Writing – review & editing
      Anis Ali
    • Investigation
      Anas A. Salameh
    • Software
      Anas A. Salameh
    • Supervision
      Anas A. Salameh
    • Visualization
      Anas A. Salameh