List of the best payment gateways in Saudi Arabia
Jul 23, 2024
The Kingdom of Saudi Arabia is witnessing great prosperity in various fields, especially in the field of e-commerce, which led to reliance on advanced digital solutions to support this field and provide a distinctive shopping experience for consumers.
Electronic payment gateways in Saudi Arabia are considered one of the most important digital solutions that have contributed to facilitating online buying and selling operations, enhancing the efficiency of services provided, meeting increasing market needs, and providing a smooth and secure shopping experience.
In this article, we will shed light on various aspects related to electronic payment, and we will review the best electronic payment gateways in Saudi Arabia.
What is E-Payment?
Simply put, it is a modern method for settling or receiving payments online through available digital payment methods such as electronic payment gateways, which act as an intermediary connecting merchants, customers, and banks, undertaking payment processing and transferring funds between the concerned parties instead of dealing with paper currency in cash to complete the purchase process between the merchant and the customer.
What is the meaning of electronic payment gateways and what is their purpose?
Electronic payment gateways are simply technical systems or platforms that allow individuals and companies to conduct online payment transactions in a safe and fast manner. These gateways act as an intermediary between the customer (who wishes to purchase or pay), the merchant (who provides the product or service), and the banks, as they process payment data such as bank card information or digital wallets, verify its validity, and then complete the financial transfer process.
The primary purpose of electronic payment gateways is to facilitate online payment operations in a way that preserves the confidentiality and security of customer data, as well as:
Enabling e-stores to receive payments directly online.
Speeding up the payment process and reducing the need for traditional procedures.
Protecting transactions from manipulation or fraud through encryption and verification technologies.
Improving the customer purchasing experience and increasing conversion rates and sales for stores.
Supporting various payment methods such as credit cards, bank cards, digital wallets, and even installment payments or bank transfers.
But what about the electronic payments market in Saudi Arabia specifically?
Overview of the E-Payments Market in Saudi Arabia
The value of the mobile payments market in the Kingdom of Saudi Arabia reached $120.96 billion in the past year, and it is expected to reach $229.75 billion in the next six years, with a compound annual growth rate of 11.49% during the forecast period.
Experts expect the e-payments market in Saudi Arabia to generally grow at a compound annual growth rate of 15.4% during the forecast period from 2022 to 2027, as a result of the rising internet and smartphone penetration rate, and technological progress that allows for safe and fast payments, as well as the flourishing e-commerce sector and consumer reliance on online shopping and purchasing.
Therefore, the government in the Kingdom seeks to support this transformation through policies and legislation that keep pace with global developments and ensure a safe environment for e-commerce, including enhancing digital infrastructure and developing advanced payment technologies.
E-payment methods in Saudi Arabia are numerous and include dozens of service providers, and here is a list of some of them.
List of the Best Electronic Payment Gateways in Saudi Arabia
There are many electronic payment gateways in Saudi Arabia, and among the most prominent and famous are:
It is considered one of the most important electronic payment gateways in Saudi Arabia, as it is an integrated system that aims to enhance the growth and benefits of e-commerce, and link ATMs and points of sale within the Kingdom with all flexibility, speed, security, and compatibility to grant its holders wide acceptance.
Among its most prominent features:
Widespread Distribution: Mada is one of the most widespread electronic payment systems in Saudi Arabia, supported by most local banks and e-stores thanks to its support for Point of Sale (POS) transactions, ATM withdrawals, and bank transfers.
Security and Encryption: Mada relies on modern and advanced encryption technologies to protect user data and financial transactions from hacking, as it has a multi-layered protection system to ensure the confidentiality and security of financial information.
Ease of Use: Mada provides easy-to-use interfaces for both individuals and companies, as well as providing multiple applications on smartphones to make payments with ease.
High Compatibility: Mada supports most debit and credit cards issued by Saudi banks, and it integrates seamlessly with various POS systems in stores and institutions, which facilitates the payment process for users.
Speed in Transactions: Mada provides high speed in executing transactions, whether at POS or online, and also provides contactless payment service, which contributes to speeding up the payment process and reducing friction between the user and devices.
Flexibility in Transactions: As it allows users to make purchases with a maximum limit of up to 200,000 Saudi Riyals daily, and cash withdrawals with a maximum limit of 5,000 riyals daily.
It is one of the electronic payment gateways in Saudi Arabia that was established with the aim of facilitating electronic payment operations for individuals and commercial activities, and it is considered one of the most important digital solutions in the payments sector in the Kingdom of Saudi Arabia.
Moyasar has many features that serve merchants and consumers alike, including, for example:
Enabling merchants to accept online payments easily through integration with their websites and electronic applications without complexity.
Facilitating the issuance of invoices and sending them to customers, and collecting payments quickly and comfortably.
Multi-channel support including credit cards, direct debit, and bank payments, in addition to local payment options such as Mada.
Supporting Point of Sale (POS) solutions to enable merchants to accept payments in physical stores.
It is one of the distinguished electronic payment gateways in Saudi Arabia that provides comprehensive payment solutions for merchants and companies, as it allows e-stores and business owners to accept online payments securely and easily from their customers around the world.
PayTabs has many features, including:
Its support for a wide range of payment methods, including all credit and direct debit cards, electronic wallets, Mada cards, and bank transfers.
Applying the highest security standards to protect customer data and financial transactions, including 3D Secure 2.0 solutions and PCI-DSS technologies.
Speed of setup, as all necessary procedures for using the gateway can be completed in less than 24 hours.
Ease of use, thanks to its smooth user interface and smart control panel that allows merchants to manage and control their payments efficiently.
The Most Popular Payment Applications and Digital Wallets in Saudi Arabia
Mada Pay
The Mada platform provides an electronic application "Mada Pay" which is used for online payment, and it is considered the most used payment application in Saudi Arabia according to the Saudi Digitalization Report for 2023.
The application offers several services such as:
Securely keeping your bank data regardless of the number of your bank cards, as there is no maximum limit for the number of allowed cards.
Paying electronically through the application without imposing fees when dealing with local stores.
Making purchases without the need for an internet connection, with the necessity of having it available when adding a bank card.
Adding a virtual account number for each bank card to be used in cases of complaints or claims.
STC Pay
It is one of the leading electronic payment applications in the Kingdom, which provides many services to complete financial operations such as:
Transferring and receiving funds through local banks such as Al-Arabi Bank, Saudi Fransi Bank, SABB Bank, and Riyadh Bank.
Supporting international transfers through Western Union agents or to a direct bank account.
The ability to add money to the wallet using a credit card, such as Mada card, or the Sadad system.
Issuing a credit card that can be used for electronic payment.
Shopping through STC Market to buy games and books, and paying for some local companies such as Careem.
Bayan Wallet works to improve the credit performance of business owners by providing complete tracking of electronic payments through special reports and analyses with the aim of enhancing financial management.
The wallet also allows paying and receiving money through the QR feature, while supporting local transfers to banks and other electronic wallets. Bayan Wallet is characterized by a simple and easy-to-use interface, which makes it suitable for all age groups and levels of technical experience, in addition to the possibility of using it for electronic payment in stores, restaurants, and gas stations.
Government Payment Processing Systems
The Kingdom of Saudi Arabia seeks to automate and unify government procedures to enhance the ease of transactions for citizens and improve financial control and auditing, so it relies on many systems, including, for example:
It is considered one of the most famous electronic payment gateways in Saudi Arabia, which is concerned with paying dues to the public and private sectors, and acts as a link between these sectors and government agencies when purchasing goods, services or real estate.
This platform aims to facilitate and speed up financial disbursement operations, enhance transparency and oversight of government spending, improve the management of government contracts and purchases, and increase the efficiency of financial and administrative operations.
It is a central system to facilitate electronic payment operations between government agencies, individuals and institutions, and is used to pay various bills and payments electronically to facilitate and speed up payment operations, reduce reliance on cash and paper checks, and provide periodic reports and accurate follow-up of payments.
After reviewing this list, which included the most prominent electronic payment gateways in Saudi Arabia and various digital payment methods, we shed light on some factors that must be considered when choosing an electronic payment gateway for your store.
Factors to Consider When Choosing the Ideal E-Payment Gateway for Your Store
When choosing the ideal electronic payment gateway for your store, many factors should be considered to ensure a smooth and secure experience for customers and also achieve your business goals efficiently. Here is a review of some key factors:
Cost and Fees
Electronic payment gateways in Saudi Arabia differ in terms of the fee structure and costs they impose, so it is necessary to understand these costs to evaluate their impact on your profits and your choice of the appropriate payment gateway for your needs. These costs include, for example:
Monthly subscription fees for using the service.
Transaction fees, which mean the percentage that will be deducted from each transfer operation performed.
Setup fees, if any.
Protection and Security
This is one of the most important factors that should be considered when choosing and comparing electronic payment gateways in Saudi Arabia. The gateway must ensure the protection of customer data and the encryption of transactions to prevent fraud and identity theft. This requires you to ensure:
Security certificates such as PCI DSS, which indicate the compliance of the selected electronic payment gateway with the data security standards of the payment card industry.
Using SSL/TLS protocols to ensure data encryption during transmission.
The presence of an advanced system for real-time fraud monitoring and handling.
Ease of Integration and Use
It is another factor that should be considered when choosing the appropriate electronic payment gateway for your store to ensure a smooth user experience and effective system management. You must ensure seamless support and integration with platforms such as Shopify, WooCommerce, Magento, BigCommerce, and other available e-commerce platforms.
In addition to ensuring the flexibility of the API to customize the connection and integration process according to your store's needs, as well as supporting the user experience and the ability to manage and handle payments through a simplified control panel that gathers the necessary tools to manage your payments efficiently.
Flexibility and Scalability
When you compare electronic payment gateways in Saudi Arabia to choose the most suitable one, you must ensure the payment gateway's ability to meet your current and future needs, which requires considering many matters, including:
The ability to process payments in multiple currencies.
Accepting credit cards, digital wallets, bank transfers, and other available payment methods.
The ability to provide payment services to customers from different countries while observing the application of local taxes and regulations.
We note that electronic payment through various available digital means, such as electronic payment gateways in Saudi Arabia, is important for various commercial activities for many reasons, some of which we will review below.
The Importance of E-Payment for Commercial Activities
Expanding Geographical Scope and Increasing Sales Volume
Electronic payment allows commercial activities to reach customers from all over the world and enable the possibility of making purchases and payments at any time without time restrictions, which contributes to improving the user experience and increasing sales and growth opportunities.
Enhancing Operational Efficiency
The reliance on digital payment methods such as electronic payment gateways contributes to reducing the administrative costs related to dealing with paper money and checks, and thus reducing the time required to process transactions and helping to improve cash flow.
Data Protection
Electronic payment gateways rely on advanced encryption technologies to protect customer data and prevent fraud, which reduces the risks of theft and gives consumers a sense of security.
Ease of Tracking and Auditing Financial Procedures
Electronic payment systems allow the possibility of tracking and auditing all financial procedures easily, clearly, and in an organized manner, which helps ensure transparency and effective review of financial transactions, and thus improve administrative efficiency.
Ease of Use
Electronic payment gateways and other digital payment methods that can be integrated into e-stores work to facilitate the purchasing process, which makes them more attractive to customers.
The electronic payment process includes many stages explained in this paragraph.
Mechanism of E-Payment Operation
The mechanism of electronic payment operation includes various stages, including:
Transaction Initiation Stage: In this stage, the customer starts the electronic payment process by entering their payment information, such as credit card number or bank account information, on the merchant's website or payment platform.
Redirection to the Payment Gateway Stage: In this stage, the payment information is directed from the merchant's website to the electronic payment gateway to act as a secure intermediary between the merchant, the customer, and various payment institutions.
Information Verification Stage: Where electronic payment gateways work to verify the validity of the payment information provided by the customer, including the card number, expiration date, CVV, and other security data.
Communication with the Card Issuer Stage: This stage involves communicating with the customer's card issuer (the bank) to verify the account balance and the information provided to obtain authorization to carry out the transaction.
Transaction Approval or Rejection Authorization Stage: If the payment information is verified and the funds are sufficient, the card issuer will send approval for the transaction to the payment gateway. However, if there are any problems, such as insufficient balance or mismatched security information, the card issuer will send a rejection to the payment gateway, and the transaction will not be completed.
Despite the simplicity of reviewing these stages, they are very complex and involve many parties such as:
The Customer: Who is the person initiating the electronic payment process to purchase a commodity or service.
The Merchant: Who is the owner of the store or electronic platform through which the purchase process takes place.
The Electronic Payment Gateway: Who is a service provider that acts as an intermediary between the merchant, the customer, and the payment institutions.
The Card Issuer: Which is the bank or financial institution that issued the payment card used in the transaction.
The Acquiring Bank: Which is the bank that the merchant deals with and receives the funds paid by the customers.
In Conclusion,
Electronic payment gateways in Saudi Arabia play a vital role in financial and commercial transactions. They are not just a tool to facilitate financial transactions between sellers and buyers, but rather a fundamental pillar that contributes to meeting the changing market needs in terms of security, speed, and efficiency.
Therefore, it is necessary to choose electronic payment gateways that comply with your requirements and provide the best levels of security and convenience to ensure a smooth and enjoyable shopping experience for consumers, which contributes to enhancing sustainability, growth, and achieving the maximum possible returns on investment.
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