Line of Vision SAUDI ARABIA
Crown Prince Mohammed bin Salman’s ambition to transform his kingdom’s economy has created a welcoming environment for providers like Paymentology to build a brave new financial world When Paymentology announced that it was seeking to register the company in Saudi Arabia in 2025 and expand its team on the ground in Riyadh, it underlined the kingdom’s status as a fintech land of opportunity. The number of fintechs has exploded, with the Saudi British Joint Business Council counting fewer than 20 in 2018 and more than 200 six years later. The growth was triggered by Crown Prince Mohammed bin Salman’s modernising programme Vision 2030, which aims to reduce his kingdom’s reliance on oil. It’s seen the liberalisation of investment rules, guaranteeing equal treatment for foreign and local investors, and regulatory reforms that have both driven and responded to consumer demand for digital financial services, such as e-wallets and buy-now-pay-later (BNPL). Despite physical transactions being overtaken by apps and e-commerce, Paymentology Chief Executive Jeff Parker says payments remains a ‘people business’, which demands a physical presence – especially in a country where culture and finance are so deeply intertwined, with Islamic principles providing the legal and operational framework. “To really grasp the huge opportunity in Saudi Arabia, it makes sense for us to be on the ground,” he says. “You need a team here that understands the market and can build relationships.” The government’s ultimate aim is a cashless economy. And that provides opportunities for providers such as Paymentology, the issuer/processor with a Cloud-based plug-and-play platform that allows banks, fintechs and telcos to issue and manage a wide range of debit, prepaid, and credit cards. It predicts a four per cent growth in card use between 2024 and 2028. Debit cards already dominate, with around 31 million cards in circulation, followed by pre-payment cards
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(around 22 million) and credit cards (around “The energy here feels like Silicon Valley four million). Meanwhile, the Saudi Central Bank 10 years ago, where it was never about reported that electronic payments accounted finding the problem in ideas, but working for 79 per cent of total retail transactions in together to find solutions. That’s a great 2024, up from 70 per cent a year earlier. mindset,” says Parker. Parker says: “We have the ability to integrate “We’re always looking at how we can into local domestic switches such as Mada, and continue to improve our proposition, whether the ability to process transactions ‘on soil’, that’s the speed at which we can create new which is a requirement here. We think what products or enhancing tokenisation capabilities we’ve done so far proves that we can help our for the needs of the Saudi market. clients achieve their growth ambitions. “It pushes us as a business because we “Barriers to entry have come down a lot know our clients and the cardholders have this because players such as ourselves can provide demand for things to be better and better.” Cloud-first infrastructure with access not just The paytech was already working with Saudi for the big clients, but for small ones, too. clients, including digital bank D360 and BNPL “The ecosystem is key; that and building lender Tabby, before deciding to commit to the partnerships. I don’t think you can be successful region with registration on Saudi soil. today trying to be all things to all people. So, That’s already delivering opportunities. we’re very much focussed on Paymentology signed a memorandum what we do really well, and of understanding with Saudi then we find partners that remittance/digital payments can support us. firm Enjaz on the same day To really grasp “How do you build that it committed to the huge opportunity a good ecosystem? expanding its presence in Saudi Arabia, it makes You operate locally on in Riyadh. The deal to sense for us to be on the the ground, you build provide card products ground. You need a team relationships and to Enjaz should be here that understands the trust, and, hopefully, lucrative – Enjaz market and can build that’s what we’re operates money relationships going to do at transfers to more than Jeff Parker Paymentology.” 200 countries and will use It’s a humble approach Paymentology’s Cloud-based that should play well in card issuing and processing a country where business platform to offer its customers relationships are defined by respect, patience pre-paid, credit and virtual cards. and strong personal connections. That’s not to say the pace of change in Working ‘on soil’ Saudi Arabia is slow – it’s anything but, Beyond enhancing opportunities to network and the aspiration is huge. Large-scale and win business, having a base in Saudi Arabia infrastructure projects are transforming is a necessity if Paymentology wants to people’s lives at an unprecedented pace become a strategically important player. and the Crown Prince’s drive and optimism A cornerstone of the Vision 2030 initiative appear to have infected all levels of society is a Saudi Central Bank requirement that who show the same hunger for change. payment service providers process, store and
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