Following the incredible energy and global dialogue at Money 20/20 Middle East in Riyadh, it’s clear that the Kingdom of Saudi Arabia is not just participating in the fintech revolution; it is actively architecting its next phase. The ambition underpinning the nation’s Vision 2030 is palpable, transforming every sector of its economy. At the heart of this transformation lies the payments ecosystem—a critical engine for digitalisation, commerce, and financial inclusion.
It was a pleasure to connect with Mr. Abdulaziz Abanmi, the Deputy Governor for Payments at the Saudi Central Bank (SAMA), to discuss the strategic thinking that is driving this rapid evolution. Our conversation provided a detailed look into how SAMA is balancing innovation with stability, fostering a vibrant fintech start-up scene, and positioning the Kingdom as a leader in the future of global finance.
Payments as the Backbone of Vision 2030
The scale of Saudi Arabia’s digital shift is remarkable. The Kingdom has already surpassed its national targets for cashless transactions, with electronic payments accounting for approximately 79% of all retail transactions last year. his achievement is no accident; it is the result of a deliberate, three-decade investment in a robust national payments infrastructure, including foundational systems like RTGS, mada, SADAD, and the instant payment system, sarie.
As Mr. Abanmi explained, payments are seen as a “fundamental catalyst and backbone of Vision 2030, serving to accelerate commerce, enable new business models, deepen financial inclusion, and enhance transparency and efficiency.”
A key part of this success has been SAMA’s decision to open the ecosystem to non-bank players, such as payment institutions and e-money issuers. This move has spurred a new wave of competition and innovation across issuing, acquiring, remittances, and digital wallet services, attracting new customer segments and driving significant growth. “Our role can be concisely described as crafting policies and regulations that both foster innovation and ensure financial stability,” Mr. Abanmi noted.
The Balancing Act: Innovation and Trust
With the rapid emergence of new models like embedded finance, which seamlessly integrate payments into everyday digital experiences, the challenge for any regulator is to enable progress without compromising security. SAMA is addressing this head-on with a regulatory approach that is both risk-based and technology-neutral, allowing it to evolve alongside the market.
Mr. Abanmi emphasised that preserving trust is paramount. SAMA’s operational frameworks are continuously updated to address new payment models, with clear standards for cybersecurity, operational resilience, fraud management, and data protection. Mandates for strong authentication, tokenization, encryption, and secure APIs are already in place, ensuring that as the ecosystem expands, its foundations remain secure.
Cultivating a World-Class Fintech Hub
To fuel this innovation, SAMA is actively cultivating a supportive environment for fintech start-ups. A cornerstone of this effort is the Regulatory Sandbox, launched in 2018. This platform provides a controlled environment for both local and international companies to pilot new business models and technologies that may not fit within existing regulatory frameworks.
The Sandbox allows firms to test their solutions in a live but managed setting, with successful models having a clear path to full implementation in the Saudi market. This initiative signals a strong commitment to making the Kingdom an attractive and viable market for the world’s most innovative fintechs.
Redefining Cross-Border Payments
In an increasingly interconnected global economy, seamless cross-border payments are critical. Here, too, Saudi Arabia is taking a proactive role. Mr. Abanmi confirmed that SAMA is actively collaborating with international bodies, including the Committee on Payments and Market Infrastructures (CPMI) and the Bank for International Settlements (BIS), to harmonise standards.
A key strategy involves leveraging the domestic Instant Payment System for the “last mile” of cross-border transactions with countries that have compatible rails. Alongside this, SAMA is working to achieve ISO 20022 harmonisation. The ultimate goal, Mr. Abanmi stated, is to make cross-border payments “faster, enhancing interoperability to increase efficiency, and extending domestic rails to reduce costs.”
The Next Frontier for Payments Innovation
Looking ahead, SAMA’s focus is on building upon its existing successes. Key priorities include the continuous improvement of the resilience and robustness of national payment systems to handle increasing volumes and withstand emerging threats.
Further initiatives are underway to expand international payment acceptance to enhance the experience for visitors, introduce new sarie-based services for large-volume business transactions, and enable new payment methods to support the Kingdom’s booming e-commerce sector. A flagship programme to modernise the core RTGS system is also in motion, ensuring the backbone of the payment rails can fuel future growth.
These coordinated efforts aim to position Saudi Arabia at the forefront of global payments innovation, supporting a more inclusive, efficient, and robust financial landscape for years to come.
Mr. Abdulaziz S. Abanmi Deputy Governor for Payments
Mr. Abdulaziz S. Abanmi has served as Deputy Governor for Payments at the Saudi Central Bank (SAMA) since August 2024. Prior to this role, he successfully led the Kingdom’s payments sector between 2018 and 2024.
Throughout his career, Mr. Abanmi has held several senior positions in the financial sector, particularly in banking and payments. His responsibilities have included overseeing technological development, governance, change management, and quality assurance, in addition to leading the launch of numerous digital services across the financial sector.
He holds a bachelor’s degree in Computer Engineering from King Saud University, a master’s degree in Software Engineering from Prince Sultan University in Riyadh, and an executive certificate in Digital Leadership from INSEAD Business School.
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