- Digital methods are most popular among remittance senders in Saudi Arabia and have been used more often over the last year.
- Respondents find ease of use, privacy, security and making life easier for friends and family, as the top benefits of digital remittances.
- 59% of surveyed remittance users expect to use digital money transfers more often in the future
As outward international payments amount to over $38 billion annually from the Kingdom of Saudi Arabia (KSA), Visa’s annual “Money Travels: 2024 Digital Remittances Adoption” report found that remittance senders in the Kingdom are primarily motivated by the need to provide regular financial support to their families abroad and to address family emergencies.
Additionally, the report highlighted that beyond supporting families, senders prioritize contributing to health and education costs and aiding those in need in response to global events.
The Money Travels: 2024 Digital Remittances Adoption study explores the methods, rates, and motivations behind sending and receiving international payments.
The 2024 survey, conducted with nearly 45,000 respondents globally highlights the rising importance of fast, easy, and secure payment methods, both in KSA and around the world.
Digital applications are gaining prominence in Saudi Arabia as the preferred method for transferring money internationally, with more than half of KSA remittance users expecting to increase their use of digital methods in the coming year.
Notably, only 32% of respondents foresee using physical transfers (cash, checks, money orders) as frequently in the future, reflecting a shift towards digitization.
While the survey recorded a decline in remittances globally, international payments frequency in Saudi Arabia remained high, with 87% of respondents planning to send money at least once per year, while 73% plan on receiving money at least once per year.
“Saudi Arabia is one of the top remittances sending markets globally[1], and Visa is working with our local partners in the Kingdom to make it faster, more secure, and easier than ever before to send money internationally,” said Ali Bailoun, Visa’s General Manager for Saudi Arabia, Bahrain and Oman.
“The local payments and financial industry must continue to innovate to improve the cross-border money movement experience, and, more broadly, leverage new technologies such as Generative AI for a more secure, seamless payment experience consumers in Saudi can enjoy.”
Highlights of the study include:
- Digital payments are the fastest and most secure method used among senders and receivers in KSA. Ease of use, privacy, and security are the key benefits of digital remittances.
- Digital apps remain the top method for sending remittances in KSA, while physical remittance methods are declining. Over the past year, fewer senders have relied on cash, checks, or money orders to send money abroad.
- High fees and issues with calculating the exchange rate were identified as main concerns for KSA remittance users. Over 33% of senders and 29% of recipients reported issues with fees, while 21% of senders and 20% of recipients found it different to understand how exchange rates were calculated.
- Physical payments equate to hidden fees. Forty-two percent (42%) of KSA respondents have been offered a free transfer when sending cash, checks, or money orders, only to find out there were hidden fees.
Visa works in collaboration with global remitters and enablement partners such as Brightwell, Thunes, Remitly, Western Union and Asia United Bank (AUB) to help enable efficient money movement through digitized remittances. Here in Saudi Arabia,
Visa is working with its financial institution partners to enable Visa Alias Directory to meet the growing demand among local consumers for easier, cost-effective and more secure ways to move money internationally. Instead of dealing with long, complex account details, Visa Direct Alias allows consumers to seamlessly send and receive money internationally by using their phone numbers.
