Introduction
Ten years ago, cash was king in Saudi Arabia.
Walk into a shop. Hand over riyals. Leave.
That was it.
Today, more than 70% of retail transactions in the Kingdom happen without cash. People pay through apps, smartphones, and contactless systems.
And here is the surprising part.
Saudi Arabia achieved this target two years ahead of schedule.
This transformation was not accidental. It was planned, pushed, and executed with a clear purpose.
The problem that started everything
For decades, Saudi Arabia depended heavily on oil.
When oil prices rose, the economy thrived. When they fell, the entire country felt the pressure. That dependency created a major vulnerability.
In 2016, Crown Prince Mohammed bin Salman introduced Vision 2030, a long-term plan to diversify the economy and reduce dependence on oil.
Financial technology quickly became one of the biggest priorities.
The rise of digital finance also opened the door for services like digital investing platforms and Saudi stocks advisory solutions, making financial markets more accessible to ordinary investors.
Fintech made perfect sense for the Kingdom. It makes financial services faster, cheaper, and easier to access while helping modernise the broader economy.
The numbers behind the growth
The growth has been extraordinary.
In 2020, around 76,000 people in Saudi Arabia used buy-now-pay-later services. Within two years, that number crossed 10 million.
In 2023, Saudi fintech companies attracted $791 million in investment, representing triple-digit growth from the previous year.
The number of active fintech companies also crossed 260, far above the government’s original target.
Saudi Arabia now aims to reach 525 fintech companies and create 18,000 fintech jobs by 2030.
Why fintech scaled so quickly
Three major factors came together at the same time.
A young digital-first population
Nearly 71% of Saudi Arabia’s population is under the age of 35. Smartphone penetration is extremely high, and younger consumers expect financial services to be instant, digital, and mobile-friendly.
Fintech companies built products around those expectations.
Regulations encouraged innovation
Saudi Arabia’s central bank (SAMA), introduced a regulatory sandbox that allowed startups to test products without navigating years of approvals.
SAMA also launched an Open Banking Framework, allowing fintech apps to securely connect with bank accounts and create new digital financial products.
This removed major barriers that previously slowed innovation.
Government support accelerated adoption
The government invested heavily in digital infrastructure, startup programs, and fintech talent development.
FinTech Saudi played a major role by supporting startups and encouraging consumers to adopt digital financial services.
The companies driving the transformation
Government policy created the environment, but private companies drove the real adoption.
STC Pay became the Kingdom’s largest digital payments platform and Saudi Arabia’s first fintech unicorn, reaching a valuation above $1 billion.
Tamara and Tabby transformed the buy-now-pay-later market. Together, they dominate a large share of the sector by offering flexible payment solutions to millions of consumers.
Lean Technologies built the infrastructure powering open banking by securely connecting fintech apps to bank accounts.
Erad focused on small businesses, offering Sharia-compliant financing to companies underserved by traditional banks.
Why buy-now-pay-later exploded
BNPL became the most transformative fintech product in Saudi Arabia over the past five years.
The concept is simple. Consumers buy now and split payments over several weeks or months without relying on traditional credit cards.
The model solved a major issue for younger consumers who often lacked access to traditional banking credit.
Banks typically required extensive paperwork, income verification, and credit history checks. BNPL platforms simplified the process dramatically.
Today, more than 40% of Saudi consumers have used a BNPL service, and the segment now accounts for a significant share of online retail spending.
What comes next
Payments and BNPL were only the beginning.
Digital investing platforms are now growing rapidly. Robo-advisory services, which automatically manage investments based on user goals, have seen strong adoption.
Consumers are no longer just using fintech apps to spend money. They are using them to save, invest, and manage wealth.
As digital investing platforms continue to expand, more retail investors are also seeking investment advice in Saudi stocks through apps, fintech platforms, and online wealth management services.
Digital wallets are evolving into complete financial ecosystems where users can manage payments, savings, and investments from a single platform.
Embedded finance is also expanding quickly. Financial services are increasingly being integrated directly into food delivery, e-commerce, and ride-hailing apps.
At the same time, Saudi Arabia is issuing new digital banking licenses and exploring emerging areas such as Web3 and climate fintech.
The sector is expected to continue growing at a strong double-digit annual rate through 2030.
Conclusion: A blueprint for economic transformation
Saudi Arabia recognised that a young, connected population needed a modern financial system.
The government changed regulations, invested in infrastructure, supported startups, and created ambitious targets that pushed the entire sector forward.
The results are already visible. Millions of Saudis now manage money differently than they did just a few years ago.
And the transformation is still accelerating.
The original target was 168 fintech companies. Saudi Arabia has already far exceeded that number, with a new goal of 525 fintech companies by 2030.
If the past five years are any indication, the Kingdom may reach that target ahead of schedule as well.
