POS weekly transactions drop to SAR 11.2B: SAMA

POS device

The point-of-sale (POS) transactions in Saudi Arabia reached nearly SAR 11.2 billion in the week ended Jan. 25, down from around SAR 11.8 billion in the previous week.

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The number of POS transactions reached about 191.5 million last week, compared to nearly 198.6 million in the previous week, according to data issued by SAMA.
 
POS transactions represent consumer expenditures through debit and credit cards at major shopping centers, retail outlets, pharmacies, and others.

The data indicated that the value of sales via POS increases in the weeks that coincide with the disbursement of salaries to government employees (the 27th of each month), in addition to the weeks that coincide with school vacations and the weeks preceding Eid Al-Fitr and Eid Al-Adha.

On the other hand, the value of sales decreases in the weeks preceding salary disbursement and those coinciding with the start of the back-to-school season.

Adopting the four-week moving average, the value of POS transactions soared during 2024, compared to 2023 and 2022.

The average value of sales ranged between SAR 11 billion and SAR 14 billion in 2024. This is compared to averaging between SAR 10 billion and SAR 13 billion in 2023 and between SAR 9 billion and SAR 12 billion in 2022.

Consumer spending was focused on the restaurants & cafes and the food & beverage (F&B) sectors, representing 30% (SAR 3.3 billion) last week’s total POS transactions.

Riyadh led in terms of POS transactions value by region, with approximately SAR 4 billion (36.1%) of the total. Jeddah followed with SAR 1.6 billion (14.4%), as follows:

According to the latest data from the Saudi Central Bank (SAMA), e-payments in the retail (individuals) sector reached 70% of total payments carried out by individuals in the Kingdom during 2023.

This achieved the target ratio in the Financial Sector Development Program, one of Vision 2030’s programs, which aims to reach an e-payment ratio of 70% by 2025.

Over the past few years, Saudi Arabia has witnessed remarkable progress and rapid growth in e-payment adoption, thanks to the myriad strategic efforts and initiatives launched by SAMA, in cooperation with the financial sector, to support the growth of the payments sector and stimulate the use of various e-payment methods in the Kingdom.