Noha Gad 

The education technology (edtech) sector in Saudi Arabia is undergoing a remarkable transformation, closely aligned with Vision 2030’s digital transformation goal. Recognizing the critical role of technology in enhancing educational outcomes, the Saudi government has implemented various initiatives and policies to attract local and international investors.

Key players in the edtech industry such as Noon Academy, Nokhbah Academy, Sprints, and others launched their operations in the Kingdom, backed by the government’s efforts to modernize the education system by supporting innovative solutions such as online learning platforms, virtual classrooms, and adaptive learning technologies.

Sprints, a leading Egyptian edtech company with a strong presence in Saudi Arabia, leverages artificial intelligence (AI) to redefine the future of education in the Middle East and North Africa (MENA) region, ultimately bridging the tech talent gap in the region by preparing qualified talent for the labor market with a guaranteed hiring program.

Sharikat Mubasher had an interview with Sprints’ Co-founder and Chief Strategy Officer Bassam Sharkawy, a passionate entrepreneur with over 13 years of experience in the software industry, to learn more about the company’s pivotal role in revolutionizing the edtech sector, regional and global expansions, and its future plans.

First, how do Sprints’ services revolutionize the edtech industry and transform the tech talent landscape? 

A key unique characteristic of Sprints is our AI-powered platform that creates a real working environment simulation. Our learners do not just study - they work in teams, have daily meetings, and use actual task management systems. We have implemented AI coaching that acts as senior mentors, and we even have AI-simulated customers sending emails to help develop practical skills. What really sets us apart is our social learning approach - while typical MOOCs see only 5-10% completion rates, our social learning methods boost this to 80-90%.

Secondly, it is the fact that employment is in our DNA. We started with guaranteed hiring boot camps, evolving into an outstaffing service that connects global clients with high-performing African teams. With over 100,000 tech professionals on our platform, we offer a win-win:

• For employers, we deliver reliable teams while managing all legal, tax, and payroll complexities, making the process seamless and hassle-free.
• For talent, it means global projects, competitive salaries, job stability, and benefits like medical insurance.

In March, Sprints raised $3mn in a bridge round to expand into 10 new markets. Can you share more about the company’s plans to broaden business in the GCC region?

We are already active in Egypt, Saudi Arabia, Oman, and Jordan, where we collaborate with governments and private entities to equip the next generation with essential tech skills, including AI, cybersecurity, digital marketing, and more.

In the UAE, for instance, we partnered with the Abdulla Al Ghurair Foundation to train 130 Emirati cybersecurity engineers. Building on the success of this program, we plan to scale it up to 1,000 engineers by 2025. 

What are the company’s global expansion plans? 

We are proud to have clients in six countries that are tech leaders, including the US, Canada, Germany, Ireland, Switzerland, and New Zealand. Next year, we will open a new funding round tackling 20 countries.

Sprints aspires to educate 1 billion learners in 10 years. How will the company achieve this goal?

We are 100% committed to this ambitious goal of educating 1 billion learners in 10 years and plan to achieve that through AI, automation, and personalized learning. We are creating adaptive learning experiences where everyone has their own individualized journey that takes them up, depending on their level. The key is that no two learners follow the same path - each person's experience is tailored to their pace, style, and capabilities.

Through social learning, we are motivating people to complete their courses, which has dramatically improved our completion rates from the typical 5-10% seen in traditional online courses to 80-90%. AI is revolutionizing the way we learn, and it is going to continue doing that for the next decade.

What makes our approach particularly powerful is our focus on matching learners with global employers. This is not just about education; it is about creating real career opportunities. By combining AI-powered learning with actual job placement, we are creating a sustainable ecosystem that can truly scale to reach our billion-learner goal.

In your opinion, what does MENA’s edtech sector need to thrive? and how Sprints tackles tech-workforce challenges?

The MENA region's edtech sector faces unique challenges, particularly in North Africa. The fundamental issue is purchasing power as many talented individuals cannot access high-quality education. While government support exists, it needs to be dramatically scaled to meet the growing demand for tech talent.

What is exciting is how we are tackling these challenges head-on. We are bridging the critical gap between education and employment through a multi-faceted approach. First, we are actively collaborating with governments across Africa to create supportive frameworks. Second, we are working with companies to increase their confidence in outsourcing to local talent. And third, we are opening up global remote work opportunities that previously seemed out of reach.

One of our proudest achievements is our focus on female talent development. This is not just about equality; it is about unlocking the full potential of our region. By bringing more women into tech, we are not only addressing the talent shortage but also creating new sources of foreign currency income through IT exports. 

Ghada Ismail

Scaling up is a pivotal stage for any startup. Growth accelerates, operations expand, and the stakes are higher than ever. At this stage, strategic partnerships can act as powerful catalysts, unlocking new markets, increasing operational efficiency, and enhancing brand credibility. This episode will explore the types of partnerships that startups should consider during scaling, along with actionable advice for forming and managing these alliances.

Why Partnerships Matter in the Scaling-Up Stage?

Scaling up isn’t just about doing more of the same; it’s about doing things smarter and more efficiently. Strategic partnerships help startups:

Access New Markets: Leverage established networks to reach untapped audiences.

Improve Operational Efficiency: Streamline processes and reduce costs with the help of experienced partners.

Enhance Credibility: Collaborations with well-known brands build trust among customers, investors, and stakeholders.

Accelerate Innovation: Gain access to technology or expertise that drives growth.

You should know that the scaling-stage partnerships require a long-term mindset, so you have to choose partners who align with your vision and can grow with you.

Types of Partnerships for Scaling Up

Distribution Partnerships: Partner with companies that can help you scale by expanding your reach.

What They Bring: Established customer bases, retail networks, or online platforms.

Example: A Saudi startup in the F&B sector partnering with a regional supermarket chain to distribute products across the GCC.

B. Technology Collaborations: Enhance your offerings or improve efficiency by teaming up with tech providers.

What They Bring: Advanced tools, platforms, or services that complement your business.

Example: A logistics startup integrating AI-driven route optimization software from a global tech firm.

C. Market Expansion Partners: Collaborate with entities that help you enter new geographies.

What They Bring: Local expertise, regulatory knowledge, and cultural insights.

Example: A Saudi e-commerce company partnering with a local logistics firm in North Africa to streamline cross-border operations.

D. Brand Co-Marketing Partnerships: Join forces with established brands to enhance visibility and customer trust.

What They Bring: Credibility, larger audiences, and shared marketing budgets.

Example: A scaling fintech company partnering with a major bank to promote its financial services app.

E. Talent Development Partners: Work with institutions or consultants to ensure you have the talent required to scale.

What They Bring: Training programs, leadership development, and access to skilled professionals.

Example: Partnering with training organizations to upskill your workforce as you expand operations.

Identifying the Right Partner

At the scaling stage, choosing the right partner requires careful evaluation.

Key Criteria to Assess:

Alignment of Goals: Do their priorities align with your growth objectives?

Track Record: Do they have experience working with scaling startups?

Scalability: Can they adapt as your needs grow?

Cultural Fit: Do their values and work style match yours?

Due Diligence Checklist:

Review their partnership history and case studies.

Validate their operational and financial stability.

Consult mutual connections for unbiased insights.

Building Long-Term Scaling Partnerships:

 Establish clear KPIs that reflect growth objectives.

Use trial phases to test the partnership before scaling up fully.

Foster open communication to address challenges collaboratively.

Negotiate Mutually Beneficial Terms:

Define revenue-sharing or cost-sharing structures.

Protect your IP and outline responsibilities in formal agreements.

Include flexibility to adjust the partnership as your startup scales.

Managing Growing Partnerships

As partnerships grow, they can become complex. Use these strategies to maintain alignment:

Regularly revisit agreements to ensure they meet evolving needs.

Use technology to manage shared workflows and monitor KPIs.

Invest in relationship-building to keep the partnership strong.

In this stage, you may need to consider involving legal and financial advisors experienced in scaling-stage partnerships to protect your interests while maximizing potential. Also, you should avoid overdependence as relying too heavily on a single partner can expose your startup to risks. Diversify partnerships to maintain flexibility and resilience.

Wrapping this up, scaling your business is an exhilarating phase, but it’s not a journey you need to take alone. The right partnerships can amplify your impact, helping you unlock new opportunities, solve operational challenges, and solidify your position in the market.

As you navigate this stage, remember that partnerships are not just about growth but also about sustainability. Choose allies who share your vision and are committed to building a lasting, mutually beneficial relationship.

Coming Up in Episode 4: "Going Global: The Perfect Partnerships to Expand Your Startup Worldwide!"

In the next episode of The Partnership guide for startups, we’ll explore how to identify and secure the perfect partnerships for taking your startup global. Expanding into international markets requires the right allies who understand local cultures, legal landscapes, and market dynamics. Tune in to learn how to build global partnerships that accelerate your expansion and ensure your brand thrives on the world stage.

Noha Gad

The retail landscape in Saudi Arabia has witnessed a significant leap in recent years, driven by rapid technological advancements and the growing demand for convenience.  In a country where digital transformation and innovation are at the forefront, quick commerce (q-commerce) found fertile ground, revolutionizing the way consumers shop online by prioritizing speed and convenience.

Q-commerce, sometimes used interchangeably with ‘on-demand delivery’ and ‘e-grocery’, is e-commerce in a new and faster form. This innovative model combines the efficiency of traditional e-commerce with the immediacy of local delivery services, catering primarily to urban dwellers who seek quick access to everyday essentials like groceries, household items, and prepared meals.

As the demand for rapid delivery solutions has surged, especially in the wake of the COVID-19 pandemic, q-commerce has emerged as a distinct segment within the retail landscape.

Traditional E-commerce Vs. Q-Commerce

Unlike traditional e-commerce, which often involves longer delivery times and a broader product range, q-commerce focuses on a limited selection of high-demand items stored in strategically located micro-fulfillment centers.

These facilities are designed to facilitate swift deliveries using agile transportation methods, such as bicycles or scooters, ensuring that customers receive their orders within an hour or even minutes.

Regarding business models, Saudi q-commerce companies, such as Jahez, HungerStation, Nana, and Floward, utilize small and local warehouses located near urban centers to enable rapid fulfillment of orders. However, traditional e-commerce companies generally rely on larger, centralized distribution hubs that serve a broader geographic area but at the cost of speed.

Q-commerce aligns with modern consumers' desire for instant gratification, where customers expect their orders to arrive almost immediately. It primarily targets urban areas where demand for quick delivery is high and logistics are manageable.

Key Features of Q-commerce

Q-commerce is rapidly transforming the retail sector in Saudi Arabia by offering a unique shopping experience. Here are the key features that define q-commerce:

• Ultra-fast delivery
• Convenience
• Hyperlocal operations
• Limited product range
• Real-time order tracking
• Reliability and quality assurance
• Cost efficiency

Benefits of q-commerce for businesses in Saudi Arabia

The q-commerce market in Saudi Arabia offers numerous advantages for businesses looking to thrive in a competitive marketplace as it is anticipated to reach around four billion orders annually by 2026, backed by increasing consumer demand for fast delivery services and the emergence of new players in the sector. Here are some major benefits of adopting a q-commerce model in the Kingdom:

• Rapid market growth. 
• Enhanced customer experience. 
• Increased operational efficiency
• Access to valuable consumer data
• Flexibility and scalability 
• Competitive advantage

In conclusion, q-commerce is reshaping the retail landscape in Saudi Arabia and beyond, offering businesses an innovative way to meet the growing demand for speed and convenience in shopping. By leveraging ultra-fast delivery services, strategic micro-fulfillment centers, and advanced technology, companies can enhance customer experiences while optimizing their operations.

As the q-commerce market continues to expand, businesses that adapt to this model stand to gain a significant competitive advantage. They can attract a loyal customer base while realizing Vision 2030’s digital transformation and economic diversification goals. 

Kholoud Hussein

Embedded finance is rapidly reshaping how financial services are delivered, integrating them directly into non-financial platforms and everyday business operations. At Seamless KSA 2024, this trend is a focal point, showcasing how fintech, retail, and e-commerce are using embedded finance to revolutionize business interactions, driving new growth opportunities and enhanced customer experiences.

Embedded finance enables businesses to offer payments, lending, insurance, and other financial services within their platforms without relying on third-party financial institutions. For example, e-commerce platforms are now providing Buy Now, Pay Later (BNPL) options, giving customers the ability to finance purchases seamlessly. Saudi companies like Tamara are leading the way, streamlining the customer experience and driving higher sales conversions.

This transformation is not just improving user experiences; it’s also boosting business outcomes. According to industry reports, embedded finance is expected to grow by 25% annually in Saudi Arabia, with small and medium-sized enterprises (SMEs) and retailers benefiting the most. By embedding financial services into their platforms, businesses can unlock new revenue streams, improve customer retention, and make transactions more efficient.

Embedded finance is particularly impactful for SMEs, which often struggle to access traditional financial services. Companies like Lendo and Funding Souq are integrating lending solutions directly into business platforms, allowing small businesses to quickly access working capital, helping them grow and compete in a digital economy.

As Saudi Arabia’s digital economy continues to expand, embedded finance is set to play an even larger role in sectors like insurance, wealth management, and B2B transactions. The innovations showcased at Seamless KSA 2024 highlight the potential of embedded finance to become a core part of the Kingdom’s financial ecosystem, benefiting businesses and consumers alike through seamless, integrated financial services.

Kholoud Hussein 

FinTech has emerged as a powerful tool for driving financial inclusion in Saudi Arabia, especially in 2024, as the Kingdom continues its ambitious journey toward a digital economy under Vision 2030. With a growing number of unbanked and underbanked individuals and small businesses, fintech innovations offer solutions extending beyond traditional banking, bringing more people into the formal financial system and enhancing economic participation.

In Saudi Arabia, where small and medium-sized enterprises (SMEs) make up a significant portion of the economy, many face challenges accessing traditional financial services. FinTech has bridged this gap by providing digital banking, lending platforms, and mobile payment solutions that cater specifically to their needs. Companies like STC Pay, Tamara, and Lendo are leading the way by offering innovative financial products that streamline payments, provide access to credit, and enable seamless transactions. According to a 2024 report by Fintech Saudi, the fintech sector in the Kingdom grew by 54% over the past year, significantly increasing financial accessibility for both individuals and SMEs.

Government initiatives have also played a crucial role in supporting fintech’s impact on financial inclusion. The Saudi Central Bank (SAMA) and Fintech Saudi have implemented regulatory frameworks, such as the Regulatory Sandbox, to foster fintech development and ensure financial products are secure, accessible, and compliant. In a recent statement, SAMA Governor Ayman Al-Sayari remarked, “Fintech is central to our vision of an inclusive financial ecosystem. By empowering underserved communities with digital tools, we are creating opportunities for growth and participation.”

Furthermore, mobile wallets like Mada Pay and Apple Pay have made it easier for consumers to manage their finances without needing a traditional bank account. With more than 75% of the population using smartphones, mobile payment adoption is expected to continue rising, bringing financial services to those previously excluded from the formal banking system.

In conclusion, FinTech is playing a transformative role in financial inclusion in Saudi Arabia, breaking down barriers and creating new opportunities for SMEs and individuals alike. As digital financial services expand, Saudi Arabia is well-positioned to achieve its Vision 2030 goals of creating a more inclusive and digitally-driven economy.

Shaimaa Ibrahim

The cashless economy represents a fundamental transformation in the way financial transactions are being processed globally. In Saudi Arabia, the ambitious Vision 2030 targets enhancing financial inclusion and building a digital environment that fosters a non-cash economy.

Startups working in tech-based sectors play a pivotal role in enhancing the non-cash economy and driving digital transformation in the world in general and Saudi Arabia in particular. These startups contribute to developing innovative solutions that change consumer behavior and promote digital payments.

Importance of non-cash economy

The non-cash economy contributes to accelerating payments, reducing transaction times, enhancing the efficiency of commercial businesses, and lowering operational costs. It also provides unbanked individuals and small-sized enterprises a seamless access to financial services. Hence, the Saudi government adopted several strategies to drive digital transformation by fostering innovation in the fintech industry and upgrading e-payments infrastructure, leading to a leap in digital payments in the Kingdom.

According to figures released by the Saudi Central Bank (SAMA), the share of e-payments in the retail sector reached 70% of total retail payments in 2023, up from 62% in 2022. Additionally, Saudi national payment schemes saw significant growth in 2023 as the number of e-payments processed through these schemes hit 10.8 billion, compared to 8.7 billion transactions in 2022.

Startups and non-cash economy

Startups play a crucial role in driving the Kingdom’s shift towards a non-cash economy, thanks to their innovative solutions that transform the pattern of financial transactions.

Here, we showcase the key factors that make startups the driving force behind Saudi Arabia’s non-cash economy:

• Offering innovative solutions. Startups develop new solutions that offer users convenient and safe payment methods and enhance digital payment culture.
• Enhancing e-commerce.  Startups often establish platforms that streamline online purchases and payments by providing safe and flexible payment options.
• Supporting Vision 2030. Startups in Saudi Arabia spare no effort to realize Vision 2030’s goals of enhancing digital transformation, achieving financial inclusion, and diversifying the national economy away from oil resources.
• Promoting cybersecurity. Cybersecurity is a top priority for startups. That is why they invest heavily in upgrading security measures to protect users' data.
• Boosting financial inclusion. Startups provide financial services for individuals and small-sized enterprises that do not have access to traditional banking services, offering flexible payment solutions that cater to the different needs of all categories.

Finally, startups can play a crucial role in realizing Vision 2030 objectives, backed by the Kingdom’s continuous digitization efforts. By tackling challenges facing startups and bolstering cooperation between government and private sector, Saudi Arabia will be able to create a robust digital economy that fosters sustainable economic development.

Translation: Noha Gad

Ghada Ismail

As Saudi Arabia delves into its digital transformation trajectory toward a cashless community, the Kingdom’s payment sector has experienced tremendous growth in digital payments and financial technologies (fintech). 

However, this growth, by default, might have also attracted the attention of cybercriminals, making cybersecurity a critical issue for the financial sector. 

Recognizing the potential threats to its digital economy, Saudi Arabia’s government has implemented a series of regulatory measures to safeguard the integrity and security of the country’s rapidly expanding payment systems.

So, what is the current state of cybersecurity in Saudi Arabia’s payment sector? And what are the key cybersecurity challenges facing the industry, and the government’s regulatory efforts to protect the financial ecosystem from cyber threats? Let’s unfold the whole thing in the coming segments.

The Growth of Digital Payments in Saudi Arabia

Over the past few years, Saudi Arabia has seen a rapid shift toward cashless payments, a natural output of many advances in digital technology and a strong governmental push to reduce cash dependency. 

With digital payment platforms becoming mainstream, more consumers and businesses are conducting transactions online, which has made the payment ecosystem a prime target for cyberattacks. 

Cybercriminals are increasingly sophisticated, using methods like phishing, identity theft, and malware to exploit vulnerabilities in payment systems. Consequently, ensuring the security of these transactions is paramount to fostering trust and protecting the Kingdom's financial infrastructure.

Cybersecurity Challenges in Saudi Arabia’s Payment Sector

As digital payments become the norm for almost the majority of the population in  Saudi Arabia, so too do the risks associated with cybercrime. Some of the major cybersecurity challenges facing the payment sector include:

1. Increasing Fraud and Cyberattacks

With more consumers shifting to online payments, incidents of fraud and cyberattacks have also surged. Cybercriminals target digital transactions, seeking to steal sensitive financial information, such as credit card details and personal identification numbers (PINs). Techniques such as phishing (where attackers deceive users into revealing confidential information) and account takeover attacks have become more common.

Saudi Arabia’s financial institutions are on high alert for these threats. However, the sheer volume of transactions and the increasing sophistication of cybercriminals make it difficult to detect and prevent every potential attack.

2. Data Breaches and Privacy Risks

Data breaches, in which cybercriminals gain unauthorized access to sensitive personal and financial data, pose a significant risk to both consumers and businesses. In the payment sector, a breach can result in the exposure of sensitive information such as bank account numbers, credit card details, and personal identification. This not only causes financial loss but also erodes trust in the digital payments infrastructure.

Given the growing reliance on data in financial services, ensuring that digital payment platforms can securely handle and protect this information is crucial to preventing privacy violations.

3. New Attack Vectors from Emerging Technologies

The integration of emerging technologies such as Internet of Things (IoT) devices and blockchain in payment systems introduces new attack vectors for cybercriminals. As IoT-connected devices are increasingly used for payments, such as smartwatches and other wearables, they can also become entry points for hackers if not properly secured.

At the same time, new fintech solutions must ensure they comply with existing regulations while addressing potential security flaws in their applications.

Government Regulations to Enhance Cybersecurity

The Saudi Arabian government has recognized the importance of robust cybersecurity measures to support the growth of the digital payments sector. Over the last few years, various regulatory frameworks have been introduced to protect consumers, businesses, and financial institutions from cyber threats.

1. Saudi Central Bank (SAMA) Cybersecurity Framework

One of the most significant initiatives has been the development of the SAMA Cybersecurity Framework, introduced in 2017. The framework provides a comprehensive set of standards and guidelines for financial institutions to strengthen their cybersecurity defenses and manage the risks associated with digital payments. It requires banks, fintech companies, and other financial institutions to implement best practices in areas such as risk management, incident response, and continuous monitoring of cybersecurity threats.

2. National Cybersecurity Authority (NCA)

In 2017, Saudi Arabia established the National Cybersecurity Authority (NCA), which plays a central role in overseeing the country’s cybersecurity posture. The NCA collaborates with SAMA and other regulatory bodies to set national standards for cybersecurity across various sectors, including the financial sector.

The NCA is responsible for developing national policies to protect critical infrastructure, including payment systems, from cyberattacks. It also provides guidelines for financial institutions on safeguarding digital assets, detecting potential threats, and responding to cybersecurity incidents.

The NCA’s involvement ensures that cybersecurity regulations are standardized across the country, creating a cohesive defense against cybercriminals targeting digital payment systems.

3. Personal Data Protection Law (PDPL)

The introduction of the Personal Data Protection Law (PDPL) in 2022 marked a significant step toward strengthening data privacy and security in Saudi Arabia. This law governs how personal data, including financial information, is collected, processed, and stored. 

Under the PDPL, businesses, including financial institutions, must obtain user consent before processing personal data and ensure that appropriate security measures are in place to protect this data from breaches.

The PDPL requires payment providers to comply with strict rules regarding data protection and imposes penalties for non-compliance. This law aligns with global data protection standards such as GDPR (General Data Protection Regulation), ensuring that Saudi consumers’ data is protected while using digital payment services.

Technological Measures to Bolster Cybersecurity

In addition to regulatory frameworks, Saudi Arabia’s financial institutions are investing heavily in cutting-edge cybersecurity technologies to protect their payment systems. Some of the key technologies being deployed include:

1. Artificial Intelligence (AI) and Machine Learning (ML)

AI and ML are becoming increasingly essential in the fight against cybercrime. In the payment sector, these technologies enable real-time monitoring of transactions and help detect unusual patterns that may indicate fraud. AI-driven systems can automatically flag suspicious transactions, preventing cyberattacks before they can cause significant harm.

2. Blockchain Technology

Blockchain technology, known for its decentralized and immutable nature, is gaining traction as a means of enhancing the security of digital payments. Blockchain can provide an extra layer of protection by encrypting transaction data and ensuring that payment records are tamper-proof.

3. Biometric Authentication

Biometric authentication methods such as fingerprint scans, facial recognition, and voice recognition are increasingly being used to secure digital payments. These technologies provide an additional layer of security by verifying users' identities based on their unique physical traits, reducing the risk of unauthorized access to payment systems.

Looking Ahead: A Secure Future for Digital Payments in Saudi Arabia

As Saudi Arabia continues to progress toward becoming a cashless society, the importance of cybersecurity in the payment sector cannot be overlooked. With the combination of government regulations, technological advancements, and industry collaboration, Saudi Arabia is well-positioned to create a resilient, secure, and efficient digital payments ecosystem.

By adopting global best practices in cybersecurity and continuously enhancing its regulatory frameworks, the Kingdom is ensuring that consumers and businesses alike can put their confidence in the safety and security of digital transactions. As Saudi Arabia forges ahead with its Vision 2030 objectives, a secure digital payments infrastructure will be essential to building a thriving, modern, and competitive financial sector.

Shaimaa Ibrahim

E-wallets have become one of the key financial innovations in today’s era of digital evolution. They transform the way individuals and businesses process their financial transactions easily and securely, promote financial inclusion, and enhance the quality of life. 

With the growing adoption of technology in all life aspects, e-wallets emerged as an innovative solution that meets the users’ needs. The usage of e-wallets is expected to rise within the upcoming period, triggered by the increase in the number of innovative fintech startups that are expected to contribute to innovating and developing new services to enhance users’ experience.

What is e-wallet?

An E-wallet is an application or platform that enables users to store their funds and make safe and secure financial transactions, including paying for goods and services and receiving money.

Types of e-wallets

• Closed wallet: allows users to store their funds and spend them only with the issuer of the wallet.
• Semi-closed wallet: allows users to easily make transactions at specific merchants and locations. It enables online purchases and allows users within the network to send funds to one another.
• Open wallet: allows users to conduct transactions from anywhere in the world. It can be used for any type of transaction, making it easy to transfer funds and make online and in-store payments.
• Mobile wallet: enables users to make payments through their smartphones.
• Online wallet: mainly used to make online financial processes.    
• Crypto wallet: enables users to store, send, or receive digital currencies like Ethereum and Bitcoin.

Common uses of e-wallets

• In-store payments
• Money transfers 
• Bill payments

Importance of e-wallets

E-wallets are not just a payment method. They play a pivotal role in:

• Promoting financial inclusion.
• Enhancing customers’ experience.
• Facilitating daily financial transactions.
• Raising safety and security.
• Reducing transaction costs.
• Streamlining e-commerce activities.

Finally, e-wallets play a fundamental role in driving the digital transformation of the global financial ecosystem as they enable users to manage funds and make daily transactions seamlessly and securely. This technology has promising opportunities to grow, backed by government support and continued innovations. E-wallets are expected to continue reshaping the payment landscape, enhancing the economy, and making financial transactions easier and more flexible. 

Translation: Noha Gad

Mohamed Ramzy

Saudi Arabia relies on financial technology (fintech) applications to promote financial inclusion, in alignment with Vision 2030’s goals of increasing the share of non-cash transactions (digital transactions) amongst individuals and reducing the use of cash to 70% by 2025.

One of Saudi Arabia’s main goals is to increase the number of fintech firms to 230 by the end of 2025, with aspirations to reach 525 fintech firms by 2030. In doing so, the Kingdom encouraged the establishment of new fintech firms to create almost 18,000 jobs and contribute around SAR 13.3 billion to the national gross domestic product (GDP). 

The fintech ecosystem in Saudi Arabia has witnessed great momentum since the Saudi Central Bank (SAMA) launched the Fintech Saudi initiative in 2018 aiming to foster innovation and collaboration between startups and investors as well as other active entities. 

According to the Fintech Report 2022 released by SAMA, there were seven licensed fintech firms in the Kingdom in 2018, then the number doubled to 14 in 2019 and continued to rise until it reached 30 by the end of 2022. 

By the end of 2023, the number of fintech firms surpassed the 2023 target of 150 firms to hit 216 fintech firms offering various financial solutions, including digital payments and e-wallets. This considerable momentum in the fintech sector positioned Saudi Arabia as a prime destination for venture capital (VC) investments.

During the first nine months of 2024, Saudi startups secured $509 million, seizing 40% of the funding raised in the Middle East and North Africa (MENA) region, as stated in a recent report by MAGNiTT. Fintech remained the top sector with investments worth $480 million, representing 37% of MENA’s total funding. 

Finally, these records reflect the Kingdom’s efforts to support innovation in the fintech sector as it is a key pillar to achieving financial inclusion and creating a non-cash society. 

Translation: Noha Gad

Ghada Ismail

As the financial landscape evolves at a crazy pace, Saudi Arabia is embracing digital transformations in its banking sector. A key development is the rise of neobanks, which offer services exclusively online without physical branches, challenging the dominance of traditional banks. This article comprehensively explores the differences between neobanking and traditional banking in Saudi Arabia, examining their benefits, limitations, and impact on consumers.

What Are Neobanks and Traditional Banks?

Neobanks are financial institutions that operate entirely online. They provide services such as checking and savings accounts, loans, and payment services through mobile apps and websites. In Saudi Arabia, neobanks aim to provide a seamless user experience with minimal fees, leveraging technology for personalized services. Examples of neobanks in Saudi Arabia include STC Pay and Samba Digital.

Traditional Banks, on the other hand, have physical branches and a long-standing presence in the market. They offer a wide range of financial services, from basic banking to complex investment products. Key players in the Saudi Arabian market include Saudi National Bank, Riyad Bank, and Al Rajhi Bank.

Key Differences between Neobanks and Traditional Banks

1. Accessibility and Convenience

Neobanks: Operate fully online, which allows users to access their accounts and manage finances anytime and anywhere through mobile apps or web interfaces. This accessibility aligns with the increasing digital-savvy population in Saudi Arabia, particularly among the youth who prefer online services.

Traditional Banks: Require customers to visit physical branches for certain services, which can be inconvenient. However, many traditional banks in Saudi Arabia have also embraced digital transformation, offering mobile banking apps and online services.

2. Cost Structure

Neobanks: Typically have lower operational costs due to the absence of physical branches. As a result, they often offer lower fees or even fee-free banking. In Saudi Arabia, some neobanks offer no-fee accounts, competitive exchange rates, and reduced international transaction fees.

Traditional Banks: While they offer comprehensive services, traditional banks generally have higher fees to cover branch operations and maintenance costs. For example, fees for international transfers, ATM withdrawals, and account maintenance can be higher than those charged by neobanks.

3. Range of Services

Neobanks: Initially focused on core banking services, neobanks in Saudi Arabia are expanding their offerings to include personal loans, credit facilities, and investment products. However, their range of services is still limited compared to traditional banks.

Traditional Banks: Provide a more comprehensive suite of services, including mortgages, corporate banking, and wealth management. Saudi Arabian banks also have established relationships with government entities, which can be beneficial for customers who need government-related financial services.

4. Customer Experience and Technology

Neobanks: Leverage advanced technology to provide a streamlined, user-friendly experience. They offer features such as instant notifications, spending analysis, and budgeting tools, which appeal to tech-savvy customers.

Traditional Banks: Although they are investing in digital services, traditional banks in Saudi Arabia are often perceived as slower to adopt cutting-edge technologies. However, their emphasis on customer service through personal interaction and relationship management remains a significant advantage.

5. Security and Trust

Neobanks: Since they are relatively new, neobanks may face trust issues among older or less tech-oriented customers. However, in Saudi Arabia, neobanks are regulated by the Saudi Central Bank (SAMA), which ensures compliance with stringent security and privacy standards.

Traditional Banks: Enjoy a high level of trust due to their long-standing presence and adherence to local regulations. In Saudi Arabia, traditional banks are perceived as more secure, especially by those who prefer in-person services.

Advantages of Neobanking in Saudi Arabia

Digital Focus: With Saudi Arabia's Vision 2030 initiative emphasizing digital transformation, neobanks align with the Kingdom’s goals by promoting cashless transactions and enhancing financial inclusion.

Cost Savings: Neobanks often eliminate common banking fees, appealing to younger and cost-conscious consumers.

Quick and Easy Account Opening: Customers can open accounts online within minutes, which is particularly attractive to the youth demographic.

Advantages of Traditional Banking in Saudi Arabia

Comprehensive Services: Traditional banks provide a wide array of services, which is beneficial for customers who need access to complex financial products.

Established Trust: Many customers prefer traditional banks due to their established reputation, branch networks, and face-to-face interaction options.

Strong Government Ties: Traditional banks in Saudi Arabia often have close relationships with governmental bodies, which can be advantageous for customers requiring government-related financial services.

Challenges and Future Outlook

For Neobanks, a key challenge is gaining consumer trust. Many customers in Saudi Arabia still value the in-person support offered by traditional banks. Additionally, while neobanks are regulated by SAMA, they must continue to strengthen cybersecurity measures to protect against digital threats.

For Traditional Banks, staying competitive will require further investment in digital transformation to meet the growing demand for online services. Traditional banks must also find ways to streamline operations and reduce costs to compete with the low-fee structure of neobanks.

As Vision 2030 drives technological innovation in the financial sector, the Saudi Arabian market is likely to see increased collaboration between traditional banks and neobanks. For example, partnerships where traditional banks offer white-labeled neobanking services could become a trend, providing customers with the best of both worlds.

Neobanks and traditional banks each offer unique advantages and face distinct challenges in Saudi Arabia. The choice between the two will largely depend on individual preferences, financial needs, and comfort with digital services. As the Saudi market evolves, the coexistence of neobanks and traditional banks will likely foster a more diverse and customer-centric financial ecosystem.

Noha Gad

One of the key objectives of the Saudi Vision 2030 is to reduce the reliance on cash and promote a cashless society, transforming the way individuals manage their money and make transactions. Driven by this objective, e-wallets emerged as a revolutionary financial tool in Saudi Arabia that brought significant changes to consumer behavior.

E-wallets are rapidly becoming the preferred payment method as they offer users a seamless way to store funds, pay for goods and services, and transfer money, all through their smartphones.

Digital wallets, such as STC Pay, Mada Pay, Apple Pay, and Sadad Wallet, drive the Kingdom’s shift towards a cashless society thanks to their convenience, security, and flexibility.

The rapid increase in smartphone usage and internet penetration has been a key factor in accelerating the shift toward digital payments and e-wallets in Saudi Arabia. Additionally, the adoption of digital financial services surged as more citizens gained access to mobile devices and high-speed internet.

Impacts of e-wallet on consumer behavior in Saudi Arabia

The shift towards digital payments is not just a matter of convenience; it is fundamentally changing purchasing habits, financial management, and preferences for payment methods. 

E-wallets play a crucial role in increasing spending, driving the shift to online shopping, fueling the adoption of contactless payments, raising financial awareness and control, reducing cash dependency, and enhancing financial inclusion in Saudi Arabia.

Many e-wallet providers in Saudi Arabia offer loyalty programs, cashback, and rewards for using their services. This incentivized consumers to choose e-wallets over other payment methods, further embedding these digital tools in their daily routines.

Finally, e-wallets also impact consumer behavior by providing financial services to the unbanked or underbanked populations, contributing to achieving the Kingdom’s financial inclusion goals by enabling individuals who previously lacked access to traditional banking to participate in the digital economy, expand their financial capabilities, and improve their quality of life.

Kholoud Hussein 

Saudi Arabia is at the forefront of a digital banking revolution, driven by the rapid adoption of mobile wallets and an ambitious push toward a cashless economy. As part of Vision 2030, the Kingdom is accelerating its transition to digital payments, with mobile wallets playing a pivotal role in reshaping the financial ecosystem. With mobile wallets offering seamless payment solutions, enhanced convenience, and greater financial inclusion, Saudi Arabia is moving closer to its goal of becoming a cashless society by 2025. This article explores the rise of mobile wallets, their impact on the digital banking sector, and their future in transforming the financial landscape of Saudi Arabia.

Saudi Arabia’s Cashless Vision: The Role of Mobile Wallets

In recent years, Saudi Arabia has made significant strides in moving towards a cashless economy, a key pillar of the Vision 2030 strategy aimed at diversifying the Kingdom’s economy. The government, in partnership with financial institutions and fintech companies, has launched several initiatives to reduce reliance on cash and encourage the use of digital payment methods. One of the most significant developments in this journey has been the rise of mobile wallets, which offer consumers a convenient, secure, and efficient payment method.

According to the Saudi Central Bank (SAMA), the percentage of non-cash transactions reached 57% in 2024, up from 36% in 2019. The rapid growth of mobile wallets is a key driver behind this increase. Speaking at the 2024 Financial Sector Conference, SAMA Governor Ayman Al-Sayari highlighted the role of digital wallets, stating, “The adoption of mobile wallets is accelerating our journey towards a cashless economy, providing consumers with seamless access to financial services while enhancing financial inclusion.”

The success of mobile wallets in Saudi Arabia is also evident in the rising number of transactions made through digital platforms. A 2024 report by PwC noted that mobile wallet transactions in the Kingdom increased by 45% year-on-year, with more consumers opting for cashless solutions in their daily financial activities.

Top Mobile Wallets in Saudi Arabia: Leading the Digital Banking Revolution

Several mobile wallet apps spearhead Saudi Arabia’s transition to digital banking, offering a range of services catering to consumers and businesses. Here’s a closer look at some of the top mobile wallets in Saudi Arabia and how they are reshaping the financial landscape:

1. STC Pay: The mobile wallet app launched by Saudi Telecom Company (STC), is one of the most prominent players in Saudi Arabia’s digital banking ecosystem. Since its launch, STC Pay has grown rapidly, becoming the first Saudi fintech unicorn with over 8 million users as of 2024. The platform offers a wide range of services, including peer-to-peer transfers, bill payments, and online shopping, making it a comprehensive solution for digital payments.

In 2024, STC Pay announced a major expansion of its services, introducing international remittances in partnership with Western Union, allowing users to send money abroad seamlessly. Speaking about the company’s vision, Ahmed Al-Enizi, CEO of STC Pay, remarked, “We aim to provide a one-stop solution for all financial needs, from local payments to cross-border transfers. Our goal is to continue expanding our services and reach, making financial services more accessible to everyone.”

STC Pay’s success reflects the broader trend of consumers shifting towards mobile-first banking, where financial transactions can be completed with just a few taps on a smartphone. As more features are integrated into the platform, such as loyalty programs and savings tools, STC Pay is positioned to play a significant role in the future of digital banking in Saudi Arabia.

2. Apple Pay: The wallet has quickly become a popular payment method in Saudi Arabia, offering a secure and easy-to-use platform for making purchases. With its integration into Mada, Saudi Arabia’s national payment network, Apple Pay has gained widespread acceptance at retail outlets, restaurants, and online platforms across the Kingdom.

Apple Pay’s emphasis on security through its use of biometric authentication (Face ID and Touch ID) and tokenization has made it a trusted choice for consumers. A 2024 survey by YouGov revealed that 76% of Saudi users consider Apple Pay one of the most secure mobile payment options available. The ability to store multiple cards and use Apple Pay across various devices—iPhones, Apple Watches, and iPads—has contributed to its popularity.

In terms of expansion, Apple Pay is expected to introduce additional features such as Apple Card, a digital credit card service that could provide users with cashback incentives and better financial management tools. By offering a seamless user experience and integrating additional services, Apple Pay will likely continue to capture a significant share of the mobile wallet market in Saudi Arabia.

3. Mada Pay: The wallet, operated by Saudi Payments, is a homegrown mobile wallet solution that allows users to make contactless payments directly from their smartphones. It is fully integrated with Mada, the Kingdom’s domestic payment network, and supports payments across millions of point-of-sale (POS) terminals in Saudi Arabia.

Since its launch, Mada Pay has become an essential tool for small and medium-sized enterprises (SMEs) and retailers, facilitating quick and secure transactions without the need for physical cards. Fahad Al-Abdulkarim, CEO of Saudi Payments, spoke at Seamless KSA 2024, stating, “Mada Pay’s growth reflects the increasing demand for local, secure, and efficient payment solutions. We are committed to enhancing the platform’s functionality to support more advanced services like micro-loans and SME financing.”

Mada Pay is set to expand its services in the coming years, with plans to integrate financial management tools and budgeting features. This will allow users to track their spending, receive insights into their financial habits, and set savings goals—all within the app. By offering a comprehensive financial solution, Mada Pay aims to become a cornerstone of Saudi Arabia’s digital banking ecosystem.

4. Al Rajhi Wallet: It is one of the largest Islamic banks in the world, and has also made significant strides in digital banking through its Al Rajhi Wallet. The mobile app allows users to conduct a wide range of banking activities, including bill payments, peer-to-peer transfers, and e-commerce transactions.

In 2024, Al Rajhi Wallet introduced new features such as contactless payments through QR codes and e-vouchers, allowing customers to make payments with greater convenience. The wallet also supports Zakat and Sadaqah payments, enabling users to fulfill religious obligations seamlessly. Waleed Al-Mogbel, CEO of Al Rajhi Bank, noted, “Our focus is on providing customers with a comprehensive, Shariah-compliant digital banking experience that meets their financial needs and promotes financial inclusion.”

Looking ahead, Al Rajhi Wallet is expected to expand its offerings to include investment services and personal finance management tools, allowing users to manage their wealth directly from the app.

5. Tamara: While primarily known as a Buy Now, Pay Later (BNPL) platform, Tamara is evolving into a broader digital payments solution for e-commerce transactions. Launched in 2020, Tamara has quickly gained popularity by offering consumers the ability to split payments into interest-free installments, with over 4 million users as of 2024.

At Seamless KSA 2024, Tamara will announce its plans to integrate mobile wallet functionality into its platform, allowing users to store funds, make direct payments, and manage their finances more effectively. Abdulmajeed Alsukhan, CEO of Tamara, emphasized the company’s vision, stating, “We are committed to providing consumers with flexible and innovative payment solutions. Expanding into digital banking services will allow us to offer even greater value to our users, enhancing their shopping and financial experience.”

The Future of Mobile Wallets in Saudi Arabia

The future of mobile wallets in Saudi Arabia looks promising, with these platforms set to expand their offerings and play an even greater role in the Kingdom’s financial ecosystem. As mobile wallets continue to evolve, several trends are expected to shape their development:

1. Integration of Financial Services: Mobile wallets are expected to integrate a wider range of financial services, from loans and credit products to investment options and insurance. This will transform mobile wallets from simple payment tools into comprehensive financial management platforms, allowing users to handle all aspects of their financial lives in one place.

For instance, STC Pay has already begun offering micro-loans to users, and other platforms are expected to follow suit by introducing similar products. By providing access to credit, savings, and investment tools, mobile wallets will empower consumers with greater financial flexibility and security.

2. Expansion of Cross-Border Payments: As Saudi Arabia’s economy becomes more interconnected with the global market, mobile wallets are likely to expand their cross-border payment capabilities. Platforms like STC Pay and Tamara are already offering international remittance services, but the scope of cross-border payments is expected to grow further, providing users with faster, cheaper, and more secure ways to send money abroad.

3. Enhanced Security and Blockchain Integration: With cybersecurity being a growing concern, mobile wallet providers are expected to invest heavily in advanced security features such as blockchain technology, biometric authentication, and AI-driven fraud detection. These measures will enhance the trust and safety of mobile wallets, encouraging more users to adopt digital payment solutions.

Finally, the rise of mobile wallets in Saudi Arabia is not just transforming how people pay for goods and services; it is fundamentally reshaping the country’s entire financial ecosystem. As mobile wallets continue to expand their services, integrating financial products and offering seamless cross-border transactions, they will play an even more significant role in the digital banking landscape. With Vision 2030 as a guiding force, Saudi Arabia’s journey towards becoming a cashless society is well underway, and mobile wallets are at the heart of this transformation.