- “Tap to phone” solution uses near-field communication technology
- The move is in line with Saudi Arabia’s goal to modernize its financial system
Small traders in Saudi Arabia can now receive a payment from patrons with their smartphones, doing away with the usual practice of cash payment. Saudi Payments, owned by the Saudi Central Bank, has partnered with Visa to launch a low-cost contactless payment technology for small and micro-businesses.
According to Arab News, the “Tap to phone” solution uses near-field communication technology to allow these businesses to accept payments via their smartphone devices, without having to invest in a separate point of sale device. The move is in line with Saudi Arabia’s goal to modernize its financial system by making innovation accessible to all segments of society.
“This step enhances the Kingdom’s financial technology capabilities and is congruent with Saudi Vision 2030’s nation-wide drive for digitization,” said Fahad Al-Akeel, Saudi Payments managing director. He said contactless payments have since grown in popularity as people avoid physical touch points amid the COVID-19 pandemic.
“The pandemic has made it critical for all businesses to expand their payment methods beyond cash, as consumers expect and prefer secure and seamless cashless payment methods wherever they shop,” Visa’s country manager, Ali Bailoun, said.
He said more than 50 percent of small businesses in the Kingdom showed keen interest in low-cost acceptance solutions, citing a recent Visa study. “We are excited to partner with Saudi Payments to bring this innovative digital payment solution to merchants in Saudi Arabia and help accelerate the Kingdom’s digital transformation goals,” he added.