Saudi E-Commerce via mada Cards Soars 79%

Saudi Arabia’s e-commerce sector continues to demonstrate remarkable growth, especially via the national mada card payment system. According to recent data released by the Saudi Central Bank (SAMA), total spending through mada cards for online purchases in July 2025 reached approximately 29.86 billion Saudi Riyals (around 7.96 billion US dollars). This figure represents a significant increase of 79.45 percent compared to the same month last year.

In addition to increased spending, the number of online transactions made via mada cards also saw a substantial rise, climbing by 65.64 percent year-on-year to reach approximately 149.74 million transactions during July (ArabNews, link). This data highlights the rapid adoption of digital payments and e-commerce in Saudi Arabia.

The Role of mada in Saudi Arabia’s Digital Payment Landscape

Mada is the Kingdom’s national electronic payment network that connects all local banks and financial institutions, enabling real-time payments both in-store and online. The mada system forms the backbone of digital payments in Saudi Arabia and is overseen by Saudi Payments under the supervision of the Saudi Central Bank.

It is important to note that the data presented here covers only transactions processed via the mada network. Online purchases made with international credit cards such as Visa or Mastercard are not included in this dataset. This distinction makes the mada figures a critical indicator of domestic digital payment adoption and e-commerce growth trends.

Factors Driving E-Commerce Growth in Saudi Arabia

Several key drivers contribute to this rapid growth in online spending through mada cards:

1. Young Population: Approximately 70 percent of Saudi Arabia’s population is under 35 years old, according to the General Authority for Statistics (August 2025). This youthful demographic is more inclined to adopt digital shopping and mobile payment solutions (ArabNews, link).

2. Near-Universal Internet Penetration: Saudi Arabia boasts an internet penetration rate of approximately 99 percent, with around 33.9 million internet users as of January 2025. Mobile devices dominate internet access, facilitating mobile commerce and app-based shopping.

3. Government and Regulatory Support: The Saudi government has emphasized digital transformation as a key pillar of its Vision 2030 economic reform plan. Electronic payments have risen to constitute about 79 percent of all retail transactions in 2024, up from 70 percent in the previous year.

4. Technological Advancements: Recent launches, including mada’s new e-commerce payment interface introduced in July 2025, simplify the integration process for merchants and payment providers. The interface enhances security by implementing tokenization technology and streamlines merchant onboarding to reduce friction.

Emerging Consumer Behavior and Market Trends

Consumers in Saudi Arabia are increasingly engaging in mobile-first, value-driven shopping experiences. According to a recent report by global consulting firm Kearney, Saudi shoppers prioritize promotions and seamless checkout processes, with frictionless digital payments becoming a critical factor in purchasing decisions.

Furthermore, the World Economic Forum identifies a growing trend toward “platformization” in the Middle East and North Africa region, where commerce, finance, messaging, and digital services converge into integrated super-app ecosystems. This development accelerates the adoption of embedded payments and unified user experiences.

Infrastructure Upgrades and Market Impact

The introduction of new payment tools, such as Google Pay and Google Wallet, which have recently launched in Saudi Arabia and integrate with the mada system, broadens consumer payment options. These platforms allow customers to pay across websites, mobile apps, and physical stores, contributing to increased e-commerce accessibility and convenience (ArabNews, link).

Additionally, tokenization technology deployed by mada enhances payment security by replacing sensitive card details with unique tokens during transactions, reducing fraud risk and increasing transaction approval rates. This contributes to smoother e-commerce experiences for both consumers and merchants (ArabNews, link).

Challenges and Opportunities Ahead

Despite the rapid growth, Saudi Arabia’s e-commerce sector faces challenges that must be addressed to sustain momentum:

• Extending adoption of the new payment interface across banks, payment gateways, and fintech providers remains crucial to maximizing benefits.

• Ensuring robust consumer protection and data security frameworks will be essential to maintain trust in digital payments.

• Authorities also aim to bring informal e-commerce activity into the formal economy by expanding VAT registration and improving tax compliance. This would increase transparency and government revenues but requires careful management to avoid disrupting small sellers.

The International Monetary Fund (IMF), in its August 2025 Article IV consultation report, underscored the importance of ongoing reforms and digitalization efforts in non-oil sectors, highlighting retail and e-commerce as key drivers of Saudi Arabia’s economic diversification.

Economic Implications

The rapid rise in e-commerce transactions via mada cards reflects a fundamental shift in consumer behavior and payment ecosystems in Saudi Arabia. For merchants, the improved payment infrastructure lowers barriers to online sales and offers access to a broadening market of digitally-savvy consumers.

From a regulatory perspective, authorities are increasingly focusing on integrating e-commerce into formal economic channels, which could boost tax revenues and enhance market oversight.

In the broader context, the acceleration of e-commerce aligns with Vision 2030 objectives to diversify the Saudi economy and promote digital innovation, making the sector a key contributor to sustainable growth.

Conclusion

Saudi Arabia’s e-commerce sector, as measured by mada card transactions, experienced a remarkable surge of nearly 80 percent in July 2025 compared to the previous year. This growth is powered by a young, digitally connected population, supportive government policies, and continuous enhancements in payment infrastructure.

While challenges remain in ensuring broad adoption, security, and formalization of all e-commerce activity, the Kingdom is well-positioned to capitalize on the digital transformation wave and further embed e-commerce as a core economic pillar.