60 percent of Saudi consumers choose digital money transfers: Western Union
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Salma Hossein
- . December 21, 2022
- . Update: December 21, 2022 8:32 pm
According to research commissioned by Western Union, nearly 60% of consumers who send money abroad prefer digital money-transfer services, compared to 22% who want choice and 17% who only send cash through retail channels. This is not surprising given that Saudi Arabia’s consumers are largely and naturally tech-savvy.
However, many people still want to have the freedom to select between online and in-store experiences based on their convenience and requirements. According to in-depth research, nearly 60% of consumers who send money overseas nowadays choose digital money-transfer services, compared to 22% who desire options and 17% who solely send cash through retail channels.
Over 1,500 Saudi Arabians who transfer money abroad were interviewed for the study to find out how, when, and why they do so.
According to Jean Claude Farah, head of Western Union’s Middle East and Asia Pacific division, “Saudi Arabian consumers are aware of the convenience that sending money safely through digital channels affords.” Farah spoke exclusively to Arab News.
The COVID-19 epidemic also significantly accelerated the introduction of digital payments since lockdowns and travel restrictions compelled people to choose cashless alternatives.
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He continued, however, that none of this comes close to the work being done by the government and the regulator, who have been making major contributions to the nation’s digital transformation.
“The country’s visionary leaders have been resolute in constructing the essential infrastructure to facilitate this evolution since starting their ambitious National Transformation Program,” added Farah.
“As a result, Saudi Arabia currently ranks seventh among the G20 countries for its digital competitiveness, with an astonishing 98 percent of the population online.”
The study’s findings show that citizens and residents have participated in this journey, choosing online possibilities over in-person encounters in order to take use of the nation’s increasingly sophisticated digital infrastructure.
Farah claimed that Saudi Arabia’s position as one of the leaders in the digital economy has been strengthened by the Kingdom’s increasingly sophisticated digital infrastructure and the consumers’ desire to adapt.
The study is in line with Western Union data, which shows that customers strongly prefer to transfer money electronically. The volume of digital transactions from Saudi Arabia increased by double digits year over year in the company’s first three quarters of 2022.
Farah responded, “Consumers remain strongly motivated to support families and loved ones and are often resilient in their efforts to do so. This is one of the aspects that contributed to this fantastic rise. Movement restrictions over the previous few years caused consumer behaviour to shift from retail to digital, which fueled digital growth. There was no exception in the remittance sector.
“Our digital growth is solid, and we will keep placing a high priority on how we can best serve our clients,” he continued. This calls for continuing to engage in digital client acquisition while guaranteeing that customers who want to switch from retail to digital may do so without experiencing any difficulties.
The study also demonstrates that the amount and frequency of money transfers have a significant impact on the recipients of payments. In general, 34 per cent of senders claim that decisions about the frequency and flow of funds are influenced by their families’ or loved ones’ financial position.
Moreover, 68 per cent of respondents say the recipient influences the business they choose to use to send money, and 74 per cent say their decision about the transfer method—digital, retail, or a mix—depends on how the recipient may receive the funds.
